subscription based shipping

Should you employ a subscription-based shipping model in your e-business?

As a competitive ecommerce site, constantly strategizing how to retain customers and keep consumer satisfaction at a high, are part of the hustle. Shipping and returns have always been a pain point for eCommerce sites, knowing that high costs for delivery or delayed delivery time can cause customers to take their business elsewhere.

While Amazon Prime may have started the trend of flexible delivery options, those offering similar services are not only cashing in on the trend, but differentiating themselves as a ‘consumer targeted business’. Companies such as Postmates are aware of this ever-growing differentiator and moving quickly to be the matchmaker between your product’s delivery schedule and your customer’s satisfaction.

Infographic: Why Amazon Gives so Many Perks to Prime Members | StatistaSource: Statista

There is no question that shipping is a huge determining factor in the customer’s shopping process; In fact, a recent Forrester report stated that 29% of consumers would be willing to pay extra for same-day delivery. In contrast, 63% of consumers acknowledged having abandoned their shopping cart because the ecommerce site was not flexible with the delivery date time frames.

Enter subscription-based shipping models.

Getting your customers to subscribe can streamline the process. By offering services such as next-day delivery or free-returns for subscription members only, your consumers are paying for quick turnaround.

Here are 4 benefits of subscriptions that lead to customer retention:

  1. Budget: Since subscriptions offer a flat rate, it reassures the customer that when shopping on your site, they won’t be charged extra for delivery.
  2. Trust: It builds trust with the client since subscriptions give the provider a sense of accountability over time and the customer feels like they are being taken care of for belonging to this subscription, overall strengthening the relationship and securing customer loyalty.
  3. Convenience: By subscribing, it makes the checkout process convenient, with customers already aware of your shipping terms and policies, they can make purchase decisions quickly and easily.
  4. Value: Customers feel like they are getting more bang-for-their-buck by being part of a subscription, and therefore will turn to your site first for purchases.

A subscription platform is the best way to turn a daily deal into a long-term customer. The key is to focus on retention efforts through what your customer needs and the need for flexible delivery options is in high demand. Offering this service through a subscription keeps your customer satisfied and your revenues on the rise.

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