Subscription based e-commerce app

A subscription is an effective way to secure revenue for your business. Meanwhile, knowing your customers’ preferences and providing them with a valuable service will take your business to the next level. Subscription-based ecommerce app development facilitates you to sell a service or product on a recurring basis.

If you are an ecommerce retailer, ecommerce app development makes the entire business process more simple and automates it. You can opt to choose subscription list frequencies, i.e., monthly, quarterly, or yearly. This enables the customers to add subscription capabilities to a product they need.

Is Entering The Subscription Ecommerce Market A Good Choice?

A few years back, the subscription-based model is the primary source of revenue for businesses such as Spotify and Netflix that allows customers to choose a subscription plan and avail of the service. 

Nowadays, the subscription ecommerce market has seen stupendous growth and even businesses like fashion and beauty take advantage of this opportunity. One perfect example is Birchbox which delivers a selection of beauty products to its subscribers on a monthly basis. Let’s explore the interesting statistics and facts.

  • The revenue generation of the subscription ecommerce market rose from $57 million to $2.6 billion between the years 2011 and 2016. 
  • In 2017, subscription box sites in the United States had reported a revenue of $40 million with $17 million paying subscribers. 
  • According to McKinsey, almost 15% of people in the United States are opting for subscription plans to get products/services on a recurring basis.
  • In 2019, the net value of the subscription ecommerce market was $15 billion and expected to reach $473 billion by the end of 2025. 
  • By the end of 2023, it is estimated that nearly 75% of businesses will offer subscriptions.  

These stats prove that investing in subscription-based ecommerce business app development is a thriving choice that results in consistent revenue. 

Enchanting Features To Consider During Subscription-Based Ecommerce Development

  • A simple onboarding process will enable the customers to register and create their account by providing the necessary details.
  • The analytics report gives various aspects of your ecommerce business. It includes customer data, marketing/sales report, support team performance, and financial report. It plays a vital role in improving your business.
  • Payment gateways enable the customers to make seamless and secure transactions. Well, not all payment gateways are the same,, and it is up to customers’ choice to prefer the one over others. Therefore, it would be quite pretty to add multiple payment gateways.
  • You can allow your customers to opt for scheduled payment options as they can set up recurring payments.
  • The behavioural triggers will notify you via email when your customers abandon their cart.
  • Providing offers, deals, coupons, discounts make your customers happier and encourages them to avail themselves of the online subscription services periodically.

A Seamless Working Model Of The Subscription-Based Ecommerce App

The concept of the subscription-based ecommerce app is getting consistent revenue from customers. It is named as a subscription fee, which will be charged monthly or yearly depending on your requirements.

Such models focus more on regular customers, and thus, it makes much more about customer retention compared to customer acquisition. This model aims at converting one-time purchases to recurring purchases and thereby brings more long-term customers by providing an uninterrupted service or product they wish to avail.

Typically, there are three primary types of subscription-based models. Let’s discuss.

  • Replenishment Subscription Model

This model will enable the customers to automate the purchase of products like flowers, body care products, and many more.

  • Curation/Discovery Subscription Model

This subscription model is meant to delight the customers by offering personalized experiences that include apparel, beauty, and food items.

  • Bargain/Access Subscription Model

In this model, customers have to pay a fee for availing of bargain prices or members-only perks that are mainly related to the food categories. Other subscription-based ecommerce model types are Fixed, Unlimited Use, Pay as you Go, Premium Member Subscriptions, and Freemium.

What Are The Benefits Of Launching an On-Demand E-commerce Subscription Service App?

There are various benefits of launching an on-demand ecommerce subscription service app. Some of them are as follows.

  • Boosts Retention

Providing a valuable subscription service helps to retain your existing customers. Customers who have subscribed to your services continue to receive more value over time.

For instance, Stitch Fix offers clothing items to customers based on their feedback. It is better to offer the services according to the customer’s style.  

  • Forecasting

It would help to improve your ability to forecast future sales and revenue numbers. You could get attention from your target customers. This guarantees you to have your customers on board for at least a certain period of time.

On the counterpart, you have the prediction of how long your subscribers will stay onboard while offering one-off products/services. Also, you can make predictions regarding the inventory and fulfilment.

However, your customers will likely subscribe for months and so you have a clear insight of the minimal amount.

  • Engagement Opportunities

There are many more opportunities for your target customers to extend a subscription period as you have existing customers to your ongoing services. Those who offer isolated services throughout this subscription model, like scheduled repeat delivery service, get the benefit. It will help to engage your services with your subscribers.

  • Customer Relationship Management

Unless and until you offer a valuable subscription service, you will never lose your existing customers as you do not have to worry about keeping them on board throughout the subscription time period.

In a nutshell, you can expand resources on acquisition and retention. The certainty is that building a customer relationship is not the only thing that boosts your business. Notably, the level of success in the online subscription services business relies mainly on the strategic approach you build.

What Are The Subscription-based Ecommerce Business Models?

Subscription-based ecommerce business models offer a sensible way for customers to purchase their services on a recurring basis. Customers can avail of these plans on a weekly, monthly, or annually. The following subscription plans are as follows.

Basic subscription plan costs $15 per month and comprises the following.

  • 150 GB Disk Space
  • 1 Database
  • Shared SSL certificate
  • 1 email account
  • 10 GB bandwidth

Premium subscription plan costs $60 per month and includes the following.

  • 1TB disk space
  • Unlimited databases
  • Private SSL certificate
  • Unlimited bandwidth
  • Unlimited email accounts

Standard subscription plan costs $35 per month and includes the following.

  • 500 GB disk space
  • 100 GB bandwidth
  • 5 databases
  • 10 email accounts
  • Shared SSL certificate

It is up to your choice to set the subscription plan for your service during subscription-based ecommerce development.

How To Estimate The Cost For E-commerce App Development?

It is quite not possible to predict the exact cost of e-commerce app development. There are several variables/parameters that contribute to the overall cost. Typically, it solely relies on your business requirements. Here are the following items that you should pay for.

  • E-commerce software
  • SSL certificate
  • Payment processing costs
  • Add-ons and extensions cost
  • Domain name
  • Hosting costs
  • Design costs

We have covered the various areas you spend for online subscription services app development. The following are the prices of some of the ecommerce websites.

  • WooCommerce – $500 – $3000 (Starter), $5000 – $10000 (Custom), and $10000+ (Enterprise)
  • Shopify – $1000 – $10000
  • BigCommerce – $1000 – $10000

How To Start Your Own Subscription-Based E-commerce Business?

There are generally two approaches to start a subscription-based ecommerce retailer business. One is creating subscription boxes from the ground and the other is including a subscription service for your existing business.   

As the subscription ecommerce market is booming and expected to flourish more shortly, this paves the way for retailers to go ahead with ecommerce app development and start a subscription-based ecommerce business.

It isn’t quite tough. The simplest way is to contact a mobile app development company for implanting your business vision into reality. Before that, you should have figured out your target customers and competitors. 

At UberLikeApp, we help to assist you in developing a subscription-based ecommerce app. Our experts of the team will consider your requirements and bring out the best product at the end. 


Not every business can opt for subscription-based ecommerce app development. It is suitable for the one who stays relevant and useful to the customers for the long run with the online subscription services. 

This blog gives clear insights that the subscription ecommerce market is flourishing in recent years. Without a doubt, it paves a great opportunity for newbie entrepreneurs who look to start a new venture and revolutionize the industry.

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