Statistics show that the subscription business model has grown by 435% in the last nine years.
By 2022, the global subscription e-commerce market is projected to increase from $72.91 billion to $120.04 billion. Moreover, it is estimated to reach $904.2 billion by 2026. Compared to this year, that means a $784 billion increase.
Before the internet, people paid for subscriptions to services like newspapers, oil, and milk delivery. But it has historically been difficult for companies to adopt and implement new subscription business models. Subscription models have faced many challenges for decades, including simply collecting payments. Due to a lack of infrastructure, it was difficult for businesses to collect recurring payments from thousands or even millions of clients.
In the modern world, digital payment platforms such as PayPal and Stripe have enabled recurring payments to be set up and processed without investing massive amounts of the workforce.
So now implementing the subscription business model is so easy, but why should business owners do that?
There are so many reasons why the subscription model works. Higher sales conversion rate, stable, steady, and predictable revenue stream, more CLTV, less spending on retention marketing, better inventory management, etc. But there is one main reason:
Subscription is a powerful business model because it creates an environment where the default customer behavior is retention, as opposed to one where the default behavior is churn.
Imagine. You pay a lot to attract a customer, from the costs related to design and tech and support to the cost of marketing and CAC. Finally, you draw a customer and sell the desired product to him. But he uses another website for the next purchase for variety. Ouch. All expenses are wasted.
Black Friday and Cyber Monday are coming in about a month. A market of about 10 billion dollars. You experience more traffic daily On average, something like a 90% increase in traffic compared to regular days. At the same time, you are not facing normal users. Users are 130% more willing to buy than usual.
So it is better not to lose this number of users and this number of buyers, and they do not buy from you just once. Setting up a subscription for products with this potential can be the leading solution to this issue and turn your Black Friday customers into permanent fans.
As a solution for those who have a Shopify store, we at Hengam have created a subscription app with 3 main features. 1. The simplicity of working with the app 2. The presence of experienced customer success managers 3. 24-hour and compelling support
Let us know what you think of our app and how we can make it a better resource by looking at it.
That's right.
We are going to help them with choosing best vendors and channel, to supply high quality products.
That's an interesting idea to add insights about shipping too.
Thanks for your comment.
We've extracted a list of IP addresses for shopify address (by checking whois on a relatively small number of stores we already know they're on Shopify) Then we've used some reverse whois service (like https://myip.ms) to find other domains that refer to the same IP. Those stores are definately on Shopify as their domain points to an IP address that belongs to Shopify.
Hi Everyone!
I’m Ali, co-founder of Shopgram. We recently launched Shopgram (https://shopgram.io) which gathers, analyses and publishes data about Shopify stores to help merchants having a successful business.
My team and I released a Shopify app to help merchants boost their sales. Upon launch, we realized we need more data about Shopify stores. We crawled more than 1 million shops and assumed it might be useful for merchants too. With online shopping growing massively in the last few years and the additional acceleration due to the pandemic, more users have headed towards online shopping. As a result, Shopify, a platform for building online stores expedited its growth. There are many merchants who would benefit from the data about trending Shopify stores and products, so we published the gathered data for free and it was well received by Product Hunters. Learning more about Shopify stores made us wonder what challenges shop owners deal with and what their major problems are.
Throughout dealing with the challenges, we took a step back and put ourselves in a new merchant or to-be merchant position, searching for the most popular niche markets or products to sell. Price, margin, quality, delivery time, etc., can affect the product merchants are trying to sell on their website.
For this matter, first we identified Shopify-made stores, gathered their data then cleaned them. Same products with different names and vast merchandise made the process hard. We solved this by applying AI tools and Machine Learning to classify the products. e crawled and categorized stores based on products they sell so that one can explore stores or products in a category. At the end we also added a search ability on the processed data. You can see the results at https://shopgram.io
Shopgram has three main parts for addressing the challenges merchants face.
Stores - https://shopgram.io/stores Best Shopify stores created by Shopify per product categories based on geographic information.
Products: https://shopgram.io/products Popular products sold in Shopify are shown here. We’ve also added features to provide more metadata on them, how to procure such products and finally what are their similar products.
Insights: https://insights.shopgram.io Statistics which helps merchants choose the niche market to increase their sales.
We’ll be pleased if you can take a look at Shopgram and share your thoughts on how we can improve the site and make it more useful.
In the modern world, digital payment platforms such as PayPal and Stripe have enabled recurring payments to be set up and processed without investing massive amounts of the workforce. So now implementing the subscription business model is so easy, but why should business owners do that? There are so many reasons why the subscription model works. Higher sales conversion rate, stable, steady, and predictable revenue stream, more CLTV, less spending on retention marketing, better inventory management, etc. But there is one main reason: Subscription is a powerful business model because it creates an environment where the default customer behavior is retention, as opposed to one where the default behavior is churn. Imagine. You pay a lot to attract a customer, from the costs related to design and tech and support to the cost of marketing and CAC. Finally, you draw a customer and sell the desired product to him. But he uses another website for the next purchase for variety. Ouch. All expenses are wasted. Black Friday and Cyber Monday are coming in about a month. A market of about 10 billion dollars. You experience more traffic daily On average, something like a 90% increase in traffic compared to regular days. At the same time, you are not facing normal users. Users are 130% more willing to buy than usual. So it is better not to lose this number of users and this number of buyers, and they do not buy from you just once. Setting up a subscription for products with this potential can be the leading solution to this issue and turn your Black Friday customers into permanent fans. As a solution for those who have a Shopify store, we at Hengam have created a subscription app with 3 main features. 1. The simplicity of working with the app 2. The presence of experienced customer success managers 3. 24-hour and compelling support Let us know what you think of our app and how we can make it a better resource by looking at it.