Riding the Subscription Wave with Magento Ecommerce Development Services

Riding the Subscription Wave with Magento Ecommerce Development Services

The era of subscriptions may have started long ago, but gained significant momentum only recently. It all began with the rise of software-as-a-service (SaaS) offerings such as online streaming services for content and music, but has since expanded to other industries ranging from fitness, fashion, beauty, and food. 

ResearchAndMarkets forecasts that the global subscription ecommerce market will grow at a whopping 71.45% CAGR by 2025. Paired with GlobalData’s projection of a 21.5% growth of the Indian ecommerce market in 2022, it is wise for your business to consider subscription models seriously. And if you’re already using Magento website development services, you can easily integrate subscription strategies into your offerings.

How does the subscription model work?

Explained simply, subscription ecommerce is a business model that helps your customers ‘subscribe’ to your products or services at regular intervals – daily, weekly, monthly, or yearly – by paying a predetermined fee. Needless to say, a customer who buys from you every month helps generate more revenue than someone who buys once, or occasionally. This model identifies repeat purchases and pushes better deals – in the form of discounts, bundles, free products and services, add-ons, etc. – in a bid to persuade customers.    

How will it help your ecommerce business?

In a world where risk and uncertainty are at record levels, businesses should do everything possible to minimize variables. Changing purchase patterns and behaviors, economic volatilities, and global events like the pandemic have made modern-day consumers more wary of their spending habits. They want the best bang for their buck, with the least effort possible. 

A subscription model addresses all these variables and offers a viable solution for ecommerce businesses, by ensuring the following. 

  • Greater customer retention: It’s no secret that acquiring new customers is more expensive and difficult than retaining existing ones. With Magento ecommerce development services, you can create a more loyal customer base and eliminate the need for customer acquisition to a large extent.  
  • Enhanced shopping experience: Magento web development services can help you offer superior shopping experiences – with effective marketing campaigns, strategic bundling, and personalized recommendations. And where there’s a better shopping experience, there’s a committed, loyal, and long-term customer.  
  • Better provisioning and inventory management: When you know how much and how often your products sell out, inventory management can become seamless. With Magento web development services, you can create an easy and hassle-free process to track what your customers buy and predict future orders.  
  • Accurate cash flow forecasting: Perhaps the greatest gift of the subscription model is business predictability. Apart from ensuring consistent cash flow, a subscription model helps remove guesswork in finance management. 
  • More upselling opportunities: If your subscription model allows for product curation, this is a great opportunity for you to cross-sell or upsell. A customer who’s already happy with your subscription options is more likely to be open to other suggestions. 

How does it appeal to customers? 

Subscription models are a great idea not just for businesses, but end-users too. Here are a few reasons why your customers might prefer it. 

  • Convenience: When a customer subscribes, they can just set it up once and forget about it. And when the products they need arrive at their doorstep without them having to remember it, customer satisfaction becomes customer delight.
  • Budgeting: Oftentimes, subscription ecommerce offers opportunities for product bundling, wherein you can combine related or frequently purchased products and services, or discounts and offers. Regular discounts and flat fees mean that customers can avoid unexpected costs and stay within budget.  
  • Personalization: Studying your customer’s habits can not only help you cater to their interests better, but also upsell other products and services relevant to them. 
  • Flexibility: A subscription model allows your end user to adjust their order according to their needs, any time they want. This flexibility is also available when it comes to billing terms and options, frequency of delivery, and more.    

So, how do you set up a subscription service?

If you’ve never offered subscription-based products and services before, it can seem a bit daunting to try it. But if you’re sold on the idea of subscription ecommerce for your business, there is a world of opportunities for you. Magento development company offers a wide range of extensions that can be easily integrated into your ecommerce store – either as a template or a custom extension. With Magento ecommerce development services, you’ll be able to: 

  • Manage flexible subscription plans 
  • Append subscriptions to a wide selection of products
  • Set up payment gateways for recurring purchases 
  • Integrate AI-driven recommendations
  • Save shipping costs by grouping subscription deliveries
  • Notify and update customers on billing details via email 

And that’s just scratching the surface. Magento offers a plethora of features and benefits to businesses and end users alike. To know more about how you can leverage Magento website development services to boost your ROI, get in touch with the experts at Tenovia today!

7 Important Ecommerce Statistics To Boost Your Sales in 2022

Ecommerce has been experiencing immense growth in the past decade but since early 2020, its meteoric rise has intensified competition and pushed ecommerce service providers to go the extra mile. What’s more, global events – be it the pandemic, Brexit, the Suez Canal crisis, the rise of 5G, or even climate change – have all had an impact on ecommerce.

Over time, purchasing habits change, supply chains can get disrupted, and new technologies such as AI can transform ecommerce. There’s a lot you need to keep track of to be a successful online seller. That’s why, we’ve chosen 7 vital trends and statistics that can help you boost your numbers this year.

1. India could be home to 228 million ecommerce shoppers by the end of 2022

With more people than ever staying at home due to the COVID-19 pandemic, the country has seen a 45% increase in the current consumer base. According to a study conducted by Recogn (the research division of WATConsult), YouTube and WhatsApp are leading platforms for ecommerce service providers. It’s also interesting to note that younger consumers prefer platforms such as Instagram and Facebook whereas older shoppers prefer WhatsApp and Facebook. So when you’re planning your next ecommerce advertising solution, remember where your audience is.

2. Mobile ecommerce accounts for 61% of online retail traffic

Smartphones have undoubtedly become the go-to online shopping tool for consumers today. But there’s an interesting twist to this statistic. While a majority of the traffic comes from mobile phones, online sales are still largely completed on desktops. What this means is ecommerce sites that are not mobile optimized will eventually lose out where it really matters – the checkout. So focus on making a user-friendly, mobile-friendly interface to grab your customer’s attention and increase your chances of them becoming paying customers.  

3. Purpose-driven brands have higher market share and 3x growth compared to competitors

With more brands using narratives such as ‘vocal for local’, ‘shop local’, and ‘support small businesses’ in their marketing, it’s clear that businesses driven by purpose and a unique voice are becoming more common. A study by Deloitte showed that today’s consumers make choices based on how brands treat employees, communities, and the environment – giving brands more incentive to follow ethical practices. In addition to higher market share and multi-fold growth, purpose-driven companies also report higher customer and employee satisfaction. So if growth is on your agenda, make your ecommerce advertising solution all about purpose.   

4. Almost 50% of users abandon shopping due to unexpected expenses 

Cost is perhaps the second most important factor for the success of ecommerce, after convenience. Your customer’s smile may turn upside down when they think they’ve found a great deal, only to be confused by extra costs such as taxes, shipping, or other service fees. They may also abandon their carts due to long checkout processes, mandatory account creation, slow delivery, and lack of trust or clarity. Ecommerce solution providers should focus on maintaining cost transparency and highlight benefits such as easy returns, free shipping, etc. 

5. 3D images of your products can boost conversion by 250%

The ability to pick up items and inspect them by hand is something online stores cannot replicate. Buyers are naturally less likely to buy something if they are not able to get a feel of the item. But with good product photography and a 360° view, you can get closer to the real deal.

6. Fast shipping vs. free shipping: 85% of consumers choose free

Of all the keywords that drive the popularity of ecommerce, ‘free’ is probably the most powerful. Free shipping has proven to be the biggest edge ecommerce has over traditional retail. Many studies even prove that consumers choose online shopping solely because of these benefits and aren’t willing to pay for shipping, even with expedited delivery times. However, free shipping isn’t always a practical solution for ecommerce service providers, especially for international orders. One solution here is to harbor local fulfillment centers located closer to customers.

7. 9 out of 10 customers are more likely to make a purchase when guided by an associate

While influencer and celebrity plugins do help boost sales, they can be costly as an ecommerce advertising solution in the long run. Instead, a surefire way to increase sales and retain customers is authentic and efficient customer assistance. Brands that employ a trained team of associates to quickly answer questions and recommend products will instill greater trust and confidence in the brand.  2022 will continue to be a year of evolution and transformation, especially so for the ecommerce sector. And with each emerging trend, there’s a world of learning to be discovered. What will make the difference for your brand is how quickly you can catch on to these trends and make concrete changes to your marketing strategy. If you’re ready to get started with ecommerce marketing services that will empower your brand in a sea of uncertainties, talk to us today.