Subscription services and automatic deliveries boost sales, says Kooomo


This article is brought to you by Retail Technology Review: Subscription services and automatic deliveries boost sales, says Kooomo.

Subscription services and automatic deliveries are not new to the eCommerce space, but are set to continue growing, meaning any retailer with relevant products not implementing this into their customer experience are falling behind the competition.

This is according to Global eCommerce platform, Kooomo, which outlines that with general eCommerce having experienced a spike during the COVID-19 pandemic, consumer habits have changed, and people are more likely than ever to be making increased purchases online and signing up to subscription services.

Recent research commissioned by The Royal Mail found that the subscription box market alone will be worth over £1billion in 2022 – a 77% increase from 2017.

Ciaran Bollard, CEO of Kooomo says, “Consumers want a great end-to-end experience and are therefore increasingly willing to subscribe to products, but only when doing so gives them tangible benefits, such as lower costs or increased personalisation.”

However, Ciaran states that it’s important to note that this model will not apply to all products. “Consumers will subscribe to products for mainly either replenishment purposes or to discover new products in a category of their choice. This means that through the subscription, you’re either saving the customer time and money or surprising them with product variety respectively. If you have products that fit into either of these categories, you’re in a strong position to implement subscription services

“As an example, supplements and vitamins are great product categories for subscription services because maintaining a healthy lifestyle is an ongoing desire, and rarely a one-off consideration. Retailers can offer subscription payment methods to enable consumers to restock purchases easily and regularly. This increases the likelihood of customer retention.”

Ciaran also outlines that if retailers are considering subscription services, making their purchasing simpler, they should also ensure they have a simple payment gateway to support this. “Secure and diverse payment options are more in demand than ever and are a vital requirement of any eCommerce site, but are essential in ensuring the subscription process is seamless. Integration with payment operators such as Stripe provide retailers with a set of tools to build and scale the recurring business model.”

Ciaran concludes, “The subscription market is already booming, but is only set to get bigger and bigger in the coming years. Retailers with relevant products for this type of service should consider implementing the tools to facilitate this now in order to improve the customer experience, improve retention, and ultimately, maintain a competitive advantage.”

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