Subscribe And Grow: Subscription Apps Are On The Rise
About three in four Americans have at least one online subscription, with streaming services like Netflix or Spotify topping the list. But within the subscription model, subscription boxes and recurring orders are on the rise. For example, the subscription box economy has grown a whopping 890% from 2014 to 2018, with brands like Hello Fresh and Stitch Fix topping the list.
In just one year (from 2018 to 2019), annual spending on subscription apps increased from 3.6 billion to 4.6 billion. Even if your brand isn’t inherently a subscription-based model, major ecommerce retailers (i.e. Amazon, Chewy) allow you the option to subscribe to create recurring orders on individual products or collections. The total market size for subscription ecommerce is estimated to be between $12-$15 billion, and this presents some major opportunities for ecommerce brands.
Even in the current uncertain times we find ourselves in, the subscription model has proved to be resilient, and even grown. Over 22.5% of companies have claimed that they’ve seen their subscription rates increase during Covid-19.
Consumers opt into subscriptions for complete convenience. They don’t have to remember to place an order and are reassured that everything they need will be delivered directly to their door without lifting a finger. For businesses, recurring subscriptions are great because they allow you to more accurately predict company revenue.
In this blog, we will cover four apps that you can integrate into your Shopify store to create recurring subscriptions. Depending on what your online business is offering (goods, services, publication subscriptions), some will be more relevant than others. Take a look at the apps below and get started with subscriptions today!
Recharge
Free - Billing starts after $100K USD in processed revenue
Recharge is the most popular subscription app in the Shopify store with 4.7/5 star reviews out of 1783 reviews. Recharge is easy to install and is customizable to match the look and feel of your online store. You can set descriptions up on individual products or collections, and choose to have the subscription widget appear on the landing pages or only on the product pages. You can create subscription boxes, mystery boxes … literally anything your store can provide, you can create a subscription for it. You can easily set “subscribe and save” discounts on products and set delivery frequency for days, weeks or months.You can also create convertible subscriptions that begin with an introductory offer which then convert to a standard plan, which is a great way for customers to try your product before they commit. Customers also have their own portal where they can easily manage their subscriptions. The app also easily integrates with Klaviyo to send your customers email notifications that their product is about to ship or their card is about to be charged.
Bold Subscriptions
$39.99/month + processing fee on subscriptions
Bold is another wildly popular app in the Shopify marketplace with 4.8 star reviews out of 1623 reviews, and used by many major ecommerce companies like Sugar Bear Hair. The app is easy to use and like Recharge, also is customizable to match the look and feel of your store. Bold is the only app that allows customers to create recurring orders on their entire cart. You can also create subscription boxes, meal plan services, and prepaid gift subscriptions. Like Recharge, you can also create convertible subscriptions. Creating dynamic discounts that incentivize customers to continue with the subscription is easy to set up, i.e. take a percentage off for every three orders. With integrations with Klaviyo, you can reduce unsubscribe rates with cancellation flows that offer incentives when customers try to unsubscribe.
Bold Memberships
Free trial for 14 days - $9.99/month
This is another subscription app brought to you by Bold. This app is geared more towards digital content subscriptions to online and offline programs/classes. Depending on the level of membership you can choose to show or hide elements of your store, you can change liquid templates so members vs. non-members will have completely different site displays. Higher tiered members can have access to exclusive deals and content, to create a VIP feel in higher-paying consumers. Bold Memberships also allows for subscription boxes, but with items from a particular category, instead of specific products.
Charge Rabbit
Starts at $ 0 /month - 5.0 % Transaction Fees
Charge Rabbit is not found in the Shopify app store but can easily be integrated. It is more ideal for magazine and video subscriptions, but can be applied to products. There are some limitations, like not having a PayPal option as well as some customization limitations. But if your online business is content based, this might be a solid option for you.
The major bonus of integrating subscription apps into your online store is consistency. It creates consistency and comfort for the customer, as well as creating a steady flow of revenue for your store. With the rate of subscription based businesses growing (even as some ecommerce sectors taking a hit), now is the time to consider taking advantage of a subscription-based model.
