When a customer makes a single purchase of a product or a service with a one-time payment, it is known as one time purchase. For instance, if you purchase a pair of shoes online via a one-time payment, it falls under the one time purchase category. On the other hand, if you take a gym membership and pay every month for the service, it falls under the recurring purchase category.
Generally, eCommerce websites offer both one-time and subscription-based purchase plans for their products or services to give their customers the flexibility to choose an ideal plan for themselves that fits their budget and needs.
Some of the key advantages of a one-time purchase plan include:
- Instant revenue (Get the complete value of your products/services)
- Easy to understand
- Easier to support (Subscription-based plans usually require 24/7 support)
- Lowers support costs
However, many businesses are shifting their focus towards subscription-based pricing models as it helps them deliver better products and get recurring revenue.