This is the time to make some changes if you are still not a part of this $10 billion market. The market for subscription e-commerce is enormous and expanding rapidly. You may discover a subscription model that provides expedited shipping, customized feeds, and a host of other advantages almost on every e-commerce company. Investigate how to sell subscriptions on Shopify if you want to join this new trend.
Why Use Shopify to Sell Subscriptions
Why should you sell your subscription on Shopify is an easy place to start. Is this model suitable for your dropshipping business?
A startup by the name of Birchbox attempted to mail makeup boxes to makeup artists in 2010 in exchange for a $10 fee. This model had incredible sales. They sold a ton of merchandise, and this was well-liked.
Along the same lines, we can design a subscription model for customers that includes a recurring fee and a steady supply of the goods.
Why it matters for your dropshipping business is as follows:
Forecasting Sales
On Shopify, selling subscriptions enables you to forecast future sales and assess your company’s cash flow. A dropshipping or starting firm can find some kind of mental tranquility with this.
A higher CLV (customer lifetime value)
Due to the recurrent nature of subscription sales on Shopify, you wind up building a sizable customer base. Better client lifetime value results for your business as a result. You should bear in mind, nevertheless, that higher CLV is correlated with the quality of the customer experience you provide.
Lower cost of customer acquisition
Typically, acquiring new customers requires a big budget. Sales and marketing are both used in this to target and win over new clients. However, you can get recurring payments when you offer subscriptions on Shopify, which lowers your overall cost of customer acquisition.
Boost upselling
You can upsell and cross-sell to existing clients when selling subscriptions on Shopify. Upselling and cross-selling to current clients should ideally take more work because you need to get in touch with them frequently. It is simpler to upsell and cross-sell to subscription clients because you already have a regular relationship with them.
Popular Subscription Types on Shopify
You may increase the earnings of your dropshipping stores with the help of numerous popular subscription-based Shopify models. We have covered the benefits and drawbacks of different models in this section.
Replenishment
The replenishment subscription model is a practical one that enables clients to set up an automated alert for purchasing necessities like pet food, feminine products, diapers, etc. You shouldn’t try to sell subscriptions in this way on Shopify if you don’t sell anything that buyers would need on a monthly basis.
Curation
The curation subscription model is another well-liked way to sell subscriptions on Shopify. These are customized boxes that your company makes and sends to clients on a regular basis.
Businesses that use the curation subscription typically sell upscale or fashion-related things that can be tailored for a client depending on personality.
Access
The exclusive access model is the third subscription option on the list. For some benefits, such as free delivery, exclusive access to items, or first access to discount items, subscribers must pay a monthly fee. These are the greatest kinds that dropshipping companies utilize. It aids in building a solid clientele.
Subscription Add-On
One type of business strategy that results in one of the aforementioned subscription models is an add-on subscription. Businesses that are uncertain about the model they want to apply or the technique they must employ to create money using this model. To better understand the environment and investigate further user requirements, they incorporate subscriptions into the current pattern, sometimes gratis.
How to Create a Shopify Subscription
What steps are involved in creating subscriptions on Shopify?
A step-by-step tutorial for selling subscriptions on Shopify may be found here:
What Is Basic
- Start by attending to the fundamentals first:
- Make a content decision for your products. Whether you plan to repurpose some of your offerings and goods.
- Choose the subscription model type that you want to utilize for your dropshipping company.
- Select the frequency of the subscription. Is it a weekly, monthly, annual, or other type of tailored model?
What forms of payment do you accept? Do you want to include this subscription in the shopping basket so that the customer may make a purchase? Or can I give this subscription?
You should experiment with various pairings for each of these products. This will assist you in selecting a subscription model that is most effective for your company.
App for Subscription
Utilizing one of the Shopify subscription apps is the second step. This is such that recurring payments can’t be set up with Shopify alone because Shopify Plus and Shopify don’t keep payment information. For the same, you’ll require a third-party program.
No matter whatever subscription app you pick, you need to look for key features. The following are some aspects that your subscription app should have:
- the capacity to develop or use various subscription techniques.
- the capability of simultaneously offering subscription-based sales and one-time purchases.
- supplying a customer-facing interface where they may modify frequency, manage subscriptions, and exchange or upgrade the product.
- being able to design a cancellation process that keeps a customer from canceling their membership
Fulfilling Subscriptions
Subscription fulfillment is the final stage of selling subscriptions on Shopify. Because your consumers are paying in advance for the service, you must fulfill your promise promptly and with high-quality features and services.
However, this is not a crucial assignment, so don’t stress. You can create new orders or create recurring orders using the Shopify app. However, you require your fulfillment partner to fulfill these orders on a monthly basis. You should bear the following in mind for this:
- Integrate Shopify and your fulfillment provider to provide quick order processing and delivery.
- To assist your users in understanding the status of their subscription, provide tracking information. To know where a package has arrived, for instance, if you are delivering it via subscription, you should send tracking information.
- Finally, make every effort to have these orders prepared before the payment so that you may ship them as soon as the payment is finished. This will hasten the delivery of orders.
Promote and sell
The last stage is to effectively sell your membership. You must put in more time and effort in your dropshipping store to achieve this. Here are some pointers for promoting your subscriptions:
- Use influencer marketing to provide buyers with social evidence. Users will be able to trust your subscription service as a result.
- To lessen the perceived risk of subscription among potential customers, use discounts or referrals.
- Use social media ads to direct clients to your business when they are looking for the goods they need.
- Add value to this subscription by offering a free trial, free shipping, and other such services.
Conclusion
Shopify subscription sales are a terrific way for marketers to increase website traffic. Try a subscription-based approach on your dropshipping store if you need to increase traffic to your website. To start selling subscriptions on Shopify and increase your dropshipping earnings, read the steps above.