Subscription Commerce: Subscription Models for Online Shops
Subscription Commerce is booming. From razor blades to dog food to software – subscription models offer predictable, recurring revenue and higher customer lifetime values. In this guide, we show how to build a successful subscription business.
Why Subscription Commerce?
Predictable Revenue
Monthly recurring instead of one-time
Higher CLV
Customer Lifetime Value increases significantly
Less CAC Pressure
Customer pays over time, not just once
The 4 Types of Subscription Models
1. Replenishment Subscriptions
Regular delivery of consumables. Classics: razor blades, coffee, pet food, supplements.
Advantage: High retention as product is needed
2. Curation (Surprise Boxes)
Curated selection of products. Examples: Glossybox (beauty), HelloFresh (recipes + ingredients), Bookish Box (books).
Advantage: Discovery joy, higher margin possible
3. Access (Membership)
Membership for exclusive benefits. Examples: Amazon Prime, Costco Membership, premium clubs with discounts.
Advantage: Customers feel exclusive, higher loyalty
4. SaaS (Software as a Service)
Digital products on subscription basis. Not just software – also online courses, digital magazines, etc.
Advantage: No logistics costs, high margin
The Most Important Metrics
| Metric | Meaning | Good Value |
|---|---|---|
| MRR | Monthly Recurring Revenue | Increasing |
| Churn Rate | Cancellation rate per month | < 5% |
| CLV | Customer Lifetime Value | > 3x CAC |
| ARPU | Average Revenue Per Subscriber | Product-dependent |
| Net Revenue Retention | Revenue development of existing customers | > 100% |
Technical Implementation
Payment Providers for Subscriptions
Stripe Billing
Market leader for subscription payments. Prorations, metered billing, dunning management.
Shopify Subscriptions
Native integration for Shopify shops. Easy start, but less flexible.
Chargebee / Recurly
Specialized platforms with advanced features. Ideal for complex subscription models.
Custom with Stripe API
Maximum control, but higher development effort. For individual requirements.
Retention Strategies
The biggest challenge with subscriptions is not acquisition, but retention. Here are the most important strategies:
Incentives for Long-term Subscriptions
Discounts for 6- or 12-month commitments. Less churn risk per month.
Pause Instead of Cancel
Offer the option to pause the subscription instead of canceling. Many customers return.
Win-back Campaigns
Automatic email sequences for canceled subscriptions. "We miss you" + special offer.
Dunning Management
Automatic retry attempts for failed payments. Can prevent 10-15% of churn.
Proactive Support
When signs of churn appear (low usage, support tickets), reach out proactively.
Avoid Common Mistakes
Cancellation Too Complicated
Dark patterns harm reputation and are partly illegal. Make cancellation easy – this builds trust.
Only Monthly Subscriptions
Annual subscriptions with discounts dramatically reduce churn. Offer different terms.
No Flexibility
Customers want to adjust delivery intervals, product selection, and quantities. Rigid subscriptions get canceled.
Ignoring Churn
Conduct exit surveys, analyze cancellation reasons, and actively counter them.
Starting a Subscription: Checklist
- Product-Market Fit: Is your product really suitable for subscriptions?
- Unit Economics: Does the model work with realistic churn?
- Tech Stack: Payment, subscription management, customer portal
- Onboarding: How are new subscribers activated?
- Retention Plan: What measures against churn?
- Analytics: Track MRR, churn, CLV
Subscription Model for Your Shop?
We advise on concept and implement technically sound subscription solutions – from strategy to integration.
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Martin Ogris
•Founder & CEOMartin Ogris is the founder of clickpuls and has been working in e-commerce for over 10 years. Together with his team, he helps companies optimize their online presence, automate processes, and achieve sustainable growth. His expertise includes shop systems like Shopify and WooCommerce, strategic consulting, and the integration of modern AI tools.