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Why the subscription business model might be the right move for your eCommerce business

As eCommerce continues to boom, businesses are looking for new and innovative ways to capture and retain customers. One popular approach is the subscription business model, which offers customers regular access to products or services for a recurring fee. Subscription-based businesses have been successful across a range of industries, including beauty, food, and entertainment. In this blog post, we’ll explore the benefits of a subscription business model for an ecommerce brand and why it could be the right move for your business. From predictable revenue to customer loyalty, we’ll dive into the advantages of this model and how it can help you establish a strong, loyal customer base and grow your business.

Why is it the right move for your business?

A subscription business model can provide your eCommerce business with a predictable stream of recurring revenue, which can help you forecast your revenue and plan your operations accordingly. By offering a subscription service, you can create a loyal customer base that is more likely to stick around and make repeat purchases. Customers are more likely to continue their subscription if they feel they are receiving value from the service. Adopting a subscription model can also give you the opportunity to upsell additional products to your customers. Once customers are subscribed, businesses can promote complementary products or higher-level subscription tiers to increase revenue.

How to implement it?

Before you implement the subscription model for your business, it is important to determine what type of subscription you want to offer your customers. The most common options available are monthly, quarterly, or annual subscriptions. As the business owner, you will already know your audience and have the tools to best select the model that suits your business and customers.
Following on from this, you will want to select a product for your subscription model that is already popular and an item that customers are likely to use on a regular basis. This will also help to determine your price, taking into consideration the value of the product and the cost associated with delivering the item.
It also goes without saying, you will need to market your subscription service strategically, either through traditional channels like email marketing, paid ads or social media. A great tactic we have seen adopted by some of our clients is to offer incentives to encourage customers to subscribe, such as a free trial period, discounts, or special promotions.
Of course, a step that we are only too familiar with is the fulfilment and delivery of your product. Once a customer has subscribed, they are putting their trust in your subscription fulfilment and delivery process that they will receive their products on time and in good condition. To streamline this process, engaging with a logistics partner will help your performance, reduce costs, and improve customer satisfaction and retention.

How can a logistics partner support your subscription fulfilment?

A third-party logistics partner can support your eCommerce business with its subscription fulfilment in several ways. Firstly, your logistics partner will take on the responsibility of warehousing and fulfilling the products offered through your subscription service. They will handle the inventory management, picking, packing, and shipping of products, which can save time and money for your business. As your business grows and expands its subscription service, a logistics partner will help scale operations to meet demand. They can provide additional warehouse space, staff, and resources to handle increased volumes of orders.
Some logistics partners can offer technological solutions, but none have adopted advance technology like Diamond’s Despatchlab. Despatchlab can be integrated with your eCommerce business systems and provide real-time visibility into inventory levels, order tracking, and other important metrics. This can help the business better manage its subscription service and make data-driven decisions. This type of technological innovation can also better support the customer service requirements of your business through handling returns, exchanges, and other customer inquiries related to the subscription service. Lastly, a reputable logistics partner, like Diamond, will have extensive knowledge about shipping products efficiently and cost-effectively. They can negotiate favourable shipping rates with carriers and use their expertise of the shipping industry to help your eCommerce business reduce costs and improve delivery times. A third-party logistics partner will also diversify your delivery options and, like Diamond, provide the contingency of a multi-carrier solution.

Overall, the subscription business model requires a significant investment in customer acquisition and retention efforts, but with the right logistics partner, it can provide a steady stream of revenue and help establish a loyal customer base over time. If you want to know more about our expertise about the subscription fulfilment or already have existing subscription service, get in touch. Simply call 0333 567 5888, email or use the form below.


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Diamond Logistics is part of The Diamond Logistics and Technology Group.  

A group of companies that work together to deliver a unique mix of people, technology and logistics that allows them to excel at delivery and fulfilment solutions for UK and international clients. Click on the logos below to visit the other websites.