Subscription-based business models are gaining momentum in the ecommerce industry. With the popularity of recurring billing services, businesses can now offer their products or services on a regular basis, generating a steady stream of revenue. BigCommerce, one of the leading ecommerce platforms, provides subscription services that enable businesses to offer subscription plans to their customers. In this article, we will delve into the benefits of subscription services and how to offer recurring billing to your customers using BigCommerce.
Why Subscription Services Are A Great Choice?
Subscription services provide numerous benefits to both businesses and customers. They create a predictable stream of revenue for businesses, increasing profitability. With recurring billing, businesses can precisely forecast their cash flow, reduce payment processing costs, and improve customer retention.
Subscription services also benefit customers. By subscribing, customers receive regular deliveries of their preferred products or services without making continuous orders. Moreover, subscription services offer discounts and perks that encourage customers to sign up for longer subscription periods.
How BigCommerce Subscription Services Work
BigCommerce subscription services work by enabling businesses to create product and service plans for their customers. The subscription service allows businesses to bill their customers on a regular basis, such as monthly or quarterly, while enabling consumers to manage their subscription.
The process of setting up subscription services on BigCommerce is straightforward. First, businesses need to create their subscription service in the Product Catalog section. Once the subscription product is created, businesses can set up a billing schedule that works best for their business model. They can define the price and the billing frequency of the subscription, as well as the duration of the subscription.
Customers can then sign up for the subscription service during checkout, create an account, and manage their subscription in the customer portal. Customers can upgrade or downgrade their subscription, change their billing information, and view their subscription history.
Benefits Of BigCommerce Subscription Services
BigCommerce subscription services provide numerous benefits for businesses of all sizes. By offering subscription plans, businesses can experience:
- Predictable cash flow.
Subscription billing creates a steady stream of revenue that businesses can easily forecast. This provides business owners with a clear understanding of their monthly or quarterly cash flow, enabling them to make informed business decisions.
- Improved customer retention.
Subscription services encourage customer loyalty, as they incentivize customers to stay subscribed for longer periods. Offering perks and discounts to subscription customers can make them feel valued and create a stronger bond between them and the business.
- Reduced payment processing costs.
With subscription billing, the payment processing costs are only incurred once during the initial billing cycle. This means that the more subscriptions a business has, the lower the payment processing fees per subscription become.
- Increased profitability.
Subscription billing creates a reliable revenue stream, which leads to an increase in profitability. Additionally, offering a subscription service allows businesses to access a new revenue stream that they may have previously overlooked or didn’t have access to. This way, businesses can increase their customer base and their revenue.
- Simplified inventory management.
Subscription billing makes inventory management much simpler and more streamlined. By having a predictable, consistent order flow, businesses can manage their inventory levels better and optimize their supply chain more efficiently.
Conclusion
Subscription services are a great way to increase revenue, improve customer retention, and simplify inventory management. With BigCommerce subscription services, businesses have access to a platform that makes creating and managing subscription plans easy. By utilizing subscription billing, businesses can achieve predictable and consistent revenue, without incurring additional payment processing fees with each renewal. With this, they can focus on growing their business and providing a great experience for their customers.