Subscriptions are not only changing how retailers do business and how consumers buy, but the model’s popularity is also a key factor in fueling the continued growth of e-commerce. These days, there’s an abundance of subscription products and services from which to choose, meeting nearly every need and every niche interest. From everyday necessities like razors, soap, and dog treats, to gourmet snacks, handmade tea, curated beauty products, designer jewelry, even airline flights and legal counsel – there’s a subscription service to meet a wide range of wants and needs.Subscriptions are popular because they provide meaningful benefits to both merchants and consumers. Merchants get predictable revenue and insights into their customers’ habits and preferences. Consumers get products tailored to their needs and the convenience of knowing that their needs or desires will be met regularly, when their subscription arrives. It’s a gift that keeps on giving.
To illustrate these points, Recurly is pleased to announce the release of our new infographic which depicts shopping trends during the start of the 2015 holiday period, including Black Friday and Cyber Monday. The infographic is based on the aggregated transaction volume at more than 450 business-to-consumer, subscription-based merchants.
The report found that these merchants’ same-store sales increased by an average of 83% on Cyber Monday compared to the previous year. Compare these results to industry figures for online sales which, according to a study by Adobe, grew by only 12% year-over-year on Cyber Monday. Looking at the entire four-day period starting with Black Friday and ending on Cyber Monday, Recurly’s same-store sales grew by 70% over the previous year, compared to the industry figure of only 15%.
Cyber Monday in particular saw huge sales volumes–a real “candlestick” surge–proving that this day is an important shopping day for e-commerce and subscription merchants. Our data showed that our subscription-based merchants experienced an impressive 230% increase in total payment volume (TPV) on Cyber Monday 2015 compared to other days during the study period. Cyber Monday also saw three times more coupon redemptions than other days during the study period, indicating that deals and discounts remain an effective marketing tactic.
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The value of Recurly is that we no longer have to worry about the different aspects of subscription management. Instead, we can focus on things that are our core competency, like adding value to our service and expanding our offering. That’s been a huge win for us.