How to build a successful eCommerce subscription business

From streaming services like Netflix or Spotify to meal kits, groceries, coffee, supplements, fitness programs, and even language learning apps, subscriptions have become a part of everyday life. Customers make a one-time setup for recurring payments, usually monthly or yearly, for convenient access to a product or service. Subscriptions offer curated choices, time savings, and often better value than one-off purchases.

The global subscription eCommerce market size accounted for US$18.82 billion in 2024 and is expected to double from around US$20.58 billion in 2025 to US$46.05 billion by 2034. More and more customers simply want to get what they need without having to think about it.

For eCommerce businesses, subscriptions are a win-win. You can make your customers’ lives easier with recurring, predictable payments, while generating steady revenue. And because subscribers tend to stick around longer and spend more over time, they become some of your most valuable customers.

To create a successful subscription service, you’ll need to understand how subscriptions work, what your customers want, and the tools required to bring it to life. 

Read on to learn more about the types of eCommerce subscription models and how to set up a subscription that works for your business.

Benefits of eCommerce subscriptions

Higher customer retention

Once a customer subscribes, they’re locked in for a period. Satisfied customers are likely to renew their subscription. To further boost retention, offer flexibility in your subscriptions. Let customers change their payment schedules, switch payment methods, or opt in and out of services easily. 

Predictable, recurring revenue 

Subscriptions give you regular payments, making it easier for you to plan and manage your cash flow. Review your key performance metrics regularly, such as the subscription renewal rate, churn rate, and average revenue per user. That way, you’ll know if you’re bringing in incremental profit and gaining new customers.

Higher customer lifetime value (CLV)

When customers enjoy the convenience of repeat purchases without extra effort, they become sticky. That drives CLV up and customer acquisition costs down. In other words, having a subscription drives more value over time than without.

Tighter inventory control

Knowing how many products ship each subscription cycle helps you manage your stock efficiently and avoid waste or out-of-stock situations. For example, if you sell perishables, having too much on hand can lead to waste, while having too little means delays for customers. If you sell niche products, you can estimate how much stock you need by customer segments (e.g. 10% high-end, 50% midline, and 40% budget items).

Stronger investor appeal

Investors look for strong customer relationships and predictable revenue as signs of financial stability and growth potential. A successful eCommerce subscription can produce both outcomes, through increased subscriptions, low churn, and positive customer reviews.

What successful subscription businesses get right

From Blue Apron’s meal kits to Dollar Shave Club’s razors, some of the world’s most recognised subscription services started small and grew by solving simple, repeat problems.

Successful eCommerce subscription businesses have a few things in common:

• They make life easier. Subscriptions remove function from everyday routine, whether it’s skipping grocery lines or never running out of toilet paper.

• They own a niche. Instead of trying to be everything to everyone, they focus on doing one thing exceptionally well – be it artisanal coffee, curated beauty boxes, or eco-friendly household products.

• They create moments of delight. Thoughtful packaging, small surprises, or personalised touches can make unboxing feel special and keep customers looking forward to the next delivery.

• They stay consistent. Reliable deliveries, transparent billing, and clear communication create trust that turns one-time buyers into long-term subscribers.

You don’t need to be Amazon to run a successful subscription service. The key to success is understanding your customers well and delivering an experience that they’ll keep coming back for.

Types of eCommerce subscription models

Before you create a subscription service, you’ll need to know which eCommerce subscription model best fits your business, products, and customers. 

Here are the three main eCommerce subscription models:

Replenishment

This subscription model is quite simple: Your business automatically delivers items to customers on a regular basis, so they don’t have to re-order manually. This model is ideal for consumables or one-time-use products like food, household essentials, or personal care products. People naturally run out of things like rice, coffee, toilet paper, and deodorant. When you offer this type of subscription, you make your customers’ lives easier by sending them these items regularly, so they’ll never have to worry about running out.

Curation

With a curation subscription model, you tailor packages based on customers’ preferences. You can use a survey or questionnaire to find out about your customers’ likes and dislikes, then create personalised boxes. If your business sells products that complement each other, or your customers value variety and personalisation, this model would work well for you.

Access

Think of the access model as a “members-only” club. Customers pay regularly to enjoy perks like early access to new products, bulk discounts, exclusive deals, or other special offers. This model suits businesses that can offer consistent value to a clear customer segment. The key is making the perks compelling enough, so that customers feel that the subscriptions are worthwhile. For example, subscribers get discounts on all products, as opposed to non-subscribers who get discounts only for specific products. 

How to set up a subscription service

Ready to launch your subscription offering? Here are some key things to consider before you do:

1. Understand your market and niche

Are your products suitable for an online subscription service? What benefits are you offering to encourage sign-ups? Since eCommerce subscriptions are expected to grow in popularity, it’s important to research your competitors and identify your niche – what makes your products or services stand out? Whether it’s product quality, personalisation, or pricing, define what sets your subscription apart.

2. Choose the right subscription model

Pick a model that aligns with your products and your customers’ habits. Start with one model, learn what resonates, then expand if needed. For example, if you run a coffee business, the replenishment model would fit. But, if you sell artisan coffees, the curation model could work too. The replenishment model is a safe bet to start with, since consumables and replenishment go hand in hand. Later, you might expand and offer two or more subscription options.

3. Define your value and incentives

Next, decide how your subscription will benefit customers. Discounts, exclusive content, free samples, or tiered plans can all drive sign-ups. Ensure your incentives are sustainable. For example, you might offer customers a discount proportional to their plan: annual subscribers could receive 15% off versus monthly subscribers who get 10% off.

4. Set up the tech and financial foundation 

Choose a platform that handles recurring billing, customer management, and analytics‌. If you’re selling across borders, make sure your financial infrastructure supports receiving, holding, and spending funds in multiple currencies to avoid unnecessary FX fees. For example, if you have customers in the UK and the US, you’d want to collect subscription payments in GBP and USD, be able to hold these local currencies in your account, and use them later to pay suppliers, staff, and bills.

5. Market your subscription clearly

Promote your subscription across various customer touchpoints – your homepage, checkout page, email, and social channels. Show the benefits and terms clearly upfront, so customers know exactly what they’ll get, how often they’ll be billed, and how to manage their subscriptions.

6. Retain customers with a good experience

Keep customers engaged with consistent quality, timely delivery, and thoughtful touches – like loyalty perks or refer-a-friend bonuses. For example, a coffee subscription could include a mug in the first shipment and samples for referrals. Small gestures build loyalty and reduce churn.

7. Track performance and refine strategy

Monitor key metrics like gross merchandise value (GMV), buyer-to-subscriber ratio (BSR), active subscribers (AR), customer lifetime value (CLV), and churn rate. Use these numbers and customer feedback to adjust ‌pricing, packaging, or incentives as customer needs and market conditions evolve.

Set up your subscription business for success

Running a successful subscription business comes down to understanding your customers, choosing the right pricing model, and making it easy for customers to pay you. Clear benefits, reliable delivery, and a smooth billing process can reduce customer churn.

Having the right tools makes managing subscriptions simpler. Airwallex Subscription Management lets you create, track, and manage your recurring payments on one platform. Set up flexible pricing models easily with no-code and low-code integrations or fully customisable APIs. Choose between simple and hybrid pricing, and customise your subscriptions with discounts, free trials, and more. 

While choosing the right subscription model is key to driving sign-ups, it’s equally important to make it easy for customers to pay you by offering familiar payment options. With Airwallex, you can offer a wide range of payment methods, including credit cards like Visa and Mastercard and digital wallets like Google Pay, Apple Pay, and AliPay. Collect and settle these payments in a multi-currency wallet, avoiding forced conversions and high FX fees.

Plus, you can monitor key metrics like monthly recurring revenue, active subscriptions, churn, and overdue payments from a single dashboard.

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations, warranties, or guarantees regarding content accuracy, completeness, or currentness. Product features, pricing and other details are subject to change. Airwallex does not guarantee the continued accuracy of this information and is not responsible for any inaccuracies that may arise from such changes. This publication is not intended to be relied on for the purpose of making a decision about a financial product. Users are encouraged to conduct their own verification and seek their own advice.

If you would like to request an update of the content in this publication, feel free to contact us at [email protected]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.