How to Use a Subscription Model to Sell Physical Goods

Why Use A Subscription Model?

How To Use a Subscription Model for Physical Goods

Popular Subscription Models for Physical Goods

  1. Subscription boxes — users sign up to receive a weekly or monthly box of products from a category that they use recurrently, for example beauty products, personal care products, pet food, and so on. Subscribers usually either choose certain products to receive periodically or they can also opt for mystery boxes, where the seller surprises them each month with a mix of products from a category.
  2. Buy and subscribe — this is another similar model where users are invited to subscribe to recurring deliveries after ordering a product from categories used on a regular basis. Diapers and even water are examples of categories this model has been employed for.
  3. Open/closed memberships — both models imply an exclusive membership and they are beginning to gain traction in physical good categories. In closed memberships, only subscribers have access to categories of products, like the Danish manufacturer WineFamily whose audience is made up of its subscribers. In open membership models, a subscription allows access to extra benefits — in fashion, for example, getting an annual VIP subscription with a clothing store could give access to exclusive discounts, not available to shoppers who haven’t subscribed. Amazon Prime is another example of membership subscription, which gives subscribers access to premium features, such as express delivery, not available for regular platform users.

Subscription Marketing for Physical Goods: The Challenges

Choose a reliable subscription platform

  • Low transaction fees
  • Easy subscription management
  • Customer self-service for subscription management
  • A high degree of customization for subscriptions
  • Multiple subscription plans
  • Built-in customer support functionality
  • Integration with your existing website
  • Multiple payment gateways
  • Automatic re-billing after failed payments

The Bottom Line

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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