eCommerce glossary

All the terminology you’ll ever need, together in one place. We can even let you know when new terms are added.

Subscription

A subscription is a business model that allows companies to earn recurring revenue from customers for offering products or services. Customers typically pay a monthly or yearly fee to maintain access to a company’s offerings.

There are two types of subscriptions commonly available in the marketplace:

  • Per-Product - This type of subscription gives customers access to a single product, such as the collection of razors from a men’s grooming brand.
  • All-Access - This type of subscription gives customers access to all products from a business, such as beard, face, hair, and body products from a men’s grooming brand.

Subscriptions are becoming an increasingly popular business model. Not only do they offer a convenient and cost-effective way to consume products, but they provide a great deal of stability to businesses and clients alike.

Customers often save money by signing up for a subscription, as providers frequently bestow discounts for commitment and loyalty. Clients looking for specialty or niche products often find them in the form of a subscription.

In addition, subscription business models offer a more predictable revenue stream for younger businesses. Setting monthly or yearly costs allows companies to plan ahead and do more with their quarterly budgets.

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