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Computers and Technology

Benefits of creating a subscription-based online store using Shopify custom development

Shopify has been one of the most popular platforms among merchants for creating efficient eCommerce stores for their online business. This exponential popularity of the Shopify eCommerce platform can be easily credited to its easy-to-use backend and flexible options. They play a crucial role in catering to unique business requirements effortlessly. As a result, more and more entrepreneurs are opting for shopify custom development in the modern age.

It is a perfect platform that is capable of accommodating every type of business requirement. The platform allows merchants and hired Shopify developers to create unique and industry-specific solutions for their business.

However, to make the best out of the Shopify store, merchants must be capable of adapting to unique business tactics. Because without proper business tactics, it is almost impossible for merchants to make the best out of their online store. One such amazing and popular business tactic is starting a subscription-based business. A subscription model in an online business has the potential of bringing in more profits for the merchants. With this article today, we will take an in-depth look into the benefits of using a subscription-based business model. But before we dive into that, let us take a look at the basic definition of this business model:

What is a subscription-based business model in shopify custom development?

A subscription-based business model refers to specific services and products that are provided to users in a fixed time interval. In a subscription-based business model, merchants can charge for replenishing or providing the products periodically. When a user signs up for a subscription-based model, they can access constant services from a brand without any hassles. For this, merchants can easily take help from excellent Shopify custom development services. The team of experts can create a custom app for managing their store’s subscription plans and services. Or alternatively, merchants can also find suitable subscription management apps from the online marketplace as well. 

Types of Subscription business models:

There are three subscription models available for any online business- Curation, Replenishment, and Access. Each model has its share of pros and cons, and it completely depends on the business to identify the best model.

Curation Business model:

This is probably the most popular of all the subscription business models. Also known as Subscription boxes, these models surprise the subscribers with new items with a highly personalized experience.

This subscription model is ideal for apparel and beauty products. More and more businesses are showing interest and it continues to expand into more industries every year.


Pros of Curation business model

Has potential for high profit: 

Customers love receiving gifts. The subscription charges range from $10 to $100 a month. The model is adopted by some of the leading businesses such as Blue Apron. Multiplying with the number of growing customers, the revenue is worth thousands of US dollars.


High Churn rate:

An endless drive to discover and offer something new can be exciting in the initial phases. However, the model is known to experience a high churn rate in the long run. Added to that, the products are mostly non-essentials (Apparel and beauty). As a result, these products thrive when the economy does well but suffers the most in times of recession.


Acquiring customers is one of the most expensive parts of this model. The business is further burdened with operating costs that include packaging, branding, and shipping.

Replenishment Business Model:

Cost-saving and convenience are at the center of this business model. The replenishment business model allows customers to automate their purchases at a discount.


The model is ideal for commodity and convenience items such as vitamins, pet food, and diapers. These are the products where one-time buyers can readily turn to subscribers. Basically, it includes products that are consumed on a daily basis and form a major part of a daily routine. The model only reminds the users to get them delivered automatically every month.


Pros of Replenishment subscription model

Higher Retention: Replenishment businesses have a high retention rate leading to long-term subscriptions. As high as 45% of members are ready to subscribe for at least a year.

Higher conversion: Compared to other models that convert 50% customers, replenishment models offer as high as 65% conversion. The reason is pretty much obvious. These products are used every month and even a 10% annual subscription can save thousands for most customers.


Low Margin: The replenishment model often requires business owners to compete on prices. This implies, businesses have to cut prices and minimize their operational costs. Otherwise, the business has to look for ways to sell products in bulk.

Access business model:

The subscribers under this business model pay a monthly fee to enjoy benefits and perks accessible to members only. Amazon, for example, has Prime membership allowing customers to get delivered products in lesser days. In most cases, Prime members are delivered products with zero shipping charges. 

Pros of the Access subscription model:

Customers feel more valued:

With customers having access to exclusive services, businesses have the opportunity to serve personalized offers. It eventually strengthens the relationship with their customers. 

Upsell and Cross-Sell Opportunities: Businesses can create an opportunity to serve their customers a range of related products. With lowered prices and a range of exclusive offers, businesses can sell more with lowered input.


Demands timely attention: Offering access can often be time-consuming. It doesn’t come with a manual that features exactly clicks. Required businesses to monitor all the features they can offer to convert and retain their customers. You need to update services every other month. The kinds of services the model offers to each product vary and thus demand continuous learning about its performance.

Benefits of subscription-based online business in shopify custom development

Subscription-based business models have a lot of potentials to bring higher profits and consistent sales to merchants. Further, the subscription-based models are more profitable for businesses that sell products ordered by users on a regular basis. Products such as pet supplies, supplements, and skincare are a part of the daily routine. Subscription for such products will ensure consistent sales. Plus, it enables users to access the products without any hassles. Below is a detailed list of benefits of subscription-based online business models for Shopify merchants:

  1. Subscription-based business models aid merchants to have a certain amount of predictable profit periodically. This, as a result, will aid merchants in reducing the risk factor of their online business. The models will eventually aid them in focusing on improving their store’s experience instead of spending hours converting users.
  2. The subscription-based model is the key to make your customers feel valued. Merchants can easily improve the accessibility of their products and make the shopping experience of their online store. This in the long run could aid merchants in improving the user’s experience. 
  3. Also, with the subscription model, merchants can easily gain a loyal set of consumers. Subscription-based models will keep a buyer engaged with the brand for a longer duration of time. This eventually contributes to improving customer loyalty.

To wrap up on the subscription-based business model

Subscription-based business models can easily aid merchants in improving their business. This business model aids users in receiving consistent profits. It also aids them in establishing a consistent business relationship with their buyers. Shopify merchants regardless of the products they sell can adopt a subscription-based model. The perks it comes with are enough to overlook the cons.

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I am a WooCommerce developer, with more than 3+ years of professional experience in WooCommerce development services at the leading web development company The Brihaspati Infotech. The Brihaspati Infotech is a prolific India-based IT company. We thrive to create unique and efficient eCommerce solutions for our 1000+ clientele. During the course of our 10+ year journey, we have committed ourselves to create cutting-edge and industry-specific solutions for our customers We facilitate a team of 150+ in-house developers who are dedicated to providing quality services and efficient results. All of our developers are certified and have a drool-worthy portfolio under their belts. We provide the following services : WooCommerce development services iPhone Mobile App Development WordPress development services Magento custom development Shopify app development Our vision is to empower merchants in making the best out of their platforms for achieving higher profits and sales. For this, we follow a feedback-oriented agile development methodology for our project development.

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