How should you price your eCommerce subscription product?
09 July 2019 11:09
Starting an ecommerce subscription service is fairly simple. However, it’s structured much differently than a traditional ecommerce business. Whereas with a normal ecommerce business you increase your margins significantly to make a profit on each sale, in a subscription-based ecommerce model you tend to keep your margins much lower. Why? This low price is the hook that brings in the customer and keeps them on the service month after month. True profits come only after the customer has been on the service for a while. This is the riskiest part of owning any subscription-based service. If the customer leaves after one or two subscription orders, you could be left with minimal (if any) profit.