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How to Setup a Recurring Order Business on Shopify
Last modified: November 29, 2023
A recurring order business is one where a customer makes an order for a product and then gets a regular shipment of that order. This can be done on a monthly, weekly, or even a daily basis. There are lots of business models that are like this: magazine subscriptions, sport product subscriptions, membership sites and more.
While some might think that Shopify is not designed for this, the truth is that Shopify is still a perfect option when it comes to setting up a recurring order business. Here are some tips on how you can create a recurring order business on Shopify.
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Why Setup a Recurring Order Business on Shopify?
There are many reasons why you might want to set up a recurring order business on Shopify. For one, subscription businesses often have high customer retention. This allows you to have lower costs because returning customers cost less to convert. Therefore, your profits for the same output will be higher with a recurring order business.
At the same time, it can allow you to better plan for demand. If you know month by month how many products/supplies you’re going to need, you don’t need to store too much stock, and you can bring in exactly what you need, in order to meet demand. This can be a great way to save
on costs and ensure maximum profit on orders.
Finally, recurring order businesses can benefit from lower fixed costs. This is typically done on time spent managing your business. Recurring orders are typically better for time management, allowing you more time to market your business to new potential customers.
How to Set up a Recurring Order Business on Shopify
When it comes to setting up a recurring order business on Shopify, you need just two things. The first is something to sell. This should be something that customers will want regularly, like once a month. This could be a food item, clothing, or something perishable. Magazines are a good option as well.
Then you need to have an app that can help you take recurring orders. There are numerous apps that are available online, and each one has advantages and disadvantages. For instance, some subscription apps take payments automatically for you. However, others will make you contact the customers on regular orders to take payment or get them to complete the payment regularly through an email system or link within an email.
There will also be some subscription apps that will give customers areas or accounts where they can manage their payment information, addresses, and even what they’re ordering on a period-to-period basis.
You can also have apps that can turn any product you want on your website into a recurring order product. This can save you a lot of time in adding new products or subscription orders to your website.
Installing an app on your website is very quick and easy to do.
Enhancing Your Shopify Recurring Order Business
Understanding the Subscription Ecosystem
The rise of eCommerce subscriptions has transformed the online shopping landscape. To thrive, understanding the ecosystem is key.
This includes recognizing the importance of recurring orders, the convenience they offer to customers, and the steady revenue they generate for businesses.
Embracing this model not only enhances customer loyalty but also ensures a more predictable and stable cash flow.
Essential Infrastructure for Recurring Orders
Setting up a successful recurring order system on Shopify requires specific infrastructure. This includes choosing the right eCommerce platform, like Shopify, and integrating a robust recurring order management software.
Such software should facilitate subscription management, handle renewals, manage shipping, and offer comprehensive analytics to drive business growth.
Additionally, a secure and versatile payment gateway is crucial for handling recurring transactions smoothly.
Maximizing Recurring Order Business with Shopify
Choosing the Right Subscription Apps
Selecting the right subscription apps is crucial. Free apps offer basic features, while paid apps provide more control and customization.
Consider apps like SubscriptionFlow for end-to-end subscription management, or explore other options that align with your specific business needs and budget.
Strategies for Subscription Success
To maximize the potential of your subscription model, consider offering bundled subscriptions or allowing customers to create their own bundles.
This not only enhances customer experience but also increases the perceived value.
Additionally, implement self-service options for subscribers, as flexibility in managing subscriptions can significantly boost customer lifetime value.
Marketing and Promotion of Subscriptions
Effectively marketing your subscription service is vital. Utilize email marketing and social media to reach your existing customer base. Highlight the benefits of subscribing, such as convenience and cost savings.
Regularly review and adjust your marketing strategies based on customer preferences and feedback to ensure ongoing engagement and growth.
Conclusion: How to Setup a Recurring Order Business on Shopify
Subscription businesses can be very profitable. But you require two things for your business. The first is to decide on your products and know the frequency that customers might want them. The second is a good subscription app that can help you manage your new business.
Can I offer both one-time and recurring purchases on Shopify?
Yes, you can set up products for one-time purchases and use apps or Shopify’s native subscription features to offer products as subscriptions with recurring billing options.
How do I manage inventory for recurring orders?
Implement a robust inventory management system. Monitor stock levels, set reorder points, and integrate your system with subscription management software.
Can customers modify their subscription after placing an order?
Yes, customers can typically modify their subscription after placing an order, depending on the company’s policies. It enhances flexibility and customer satisfaction.