Detailed definition
A subscription model sends the customer automatic deliveries at set intervals; by making repeat purchases regular, it can raise customer lifetime value (LTV). Recharge is one of the widely used solutions on Shopify. A discount is usually offered to encourage subscribing; because it recurs every cycle, it must be calculated against the margin. Pausing and cancelling must be easy, otherwise complaints and payment disputes increase. Common for skincare, food, pet, supplement and coffee brands.
Examples
- A coffee brand offering automatic delivery every two weeks.