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BizReport : Ecommerce : January 21, 2016

Report: Subscription services show strong growth

Subscription services may be the key to retailer growth moving forward. That is the takeaway from a new Recurly report which shows strong growth for subscription sales through the 2015 holiday season.

by Kristina Knight

Subscription services have been around for decades, but with the Internet they are becoming quite the cash cow for retailers. Consumers can put nearly anything on a subscription - from food to fashion, and according to one new report these subscription options are catching on.

Recurly watched how consumers engaged with subscriptions over the 2015 holiday season and found Cyber Monday total payment values increased 230% compared to other days in the study. They also found same store sales increased 83% on Cyber Monday (YoY).

"The popularity of the subscription model is largely due to the fact it benefits both consumers and businesses," said Dan Burkhart, CEO and co-founder at Recurly. "Merchants reap the benefits of predictable revenue coupled with customer insights, creating opportunities to continually refine pricing, packaging and product offerings. Consumers enjoy the convenience of a relationship with the brands they trust most to deliver innovative products and experiences to them consistently over time."

Same store sales increased 70% beginning on Black Friday and continuing through Cyber Monday compared to 2014 sales.

Image via Shutterstock

Tags: digital retail trends, ecommerce, ecommerce trends, Recurly, subscription services

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