Drowning in piles of products and never-ending packing for your growing subscription business? Running a subscription-based eCommerce business is great when you’re starting out, as it brings predictable revenue, loyal customers, and the thrill of curating the perfect package every month. But now, as those orders pile up, so does the reality: managing stock, subscription fulfilment and shipping at scale is a whole new ball game.
What does a successful subscription business look like?
When you’re planning your next steps, it’s super helpful to have a clear picture of what success looks like for different types of subscription models. Wondering if your subscription business is on the right track? Take a look at the things that will drive sustainable growth and keep your customers coming back for more.
Predictable Subscription Revenue
Are you seeing a steady, recurring income from your subscription business model? Recurring revenue from monthly or annual subscription fees should make cash flow easier and future planning easier. If you’re able to forecast based on your subscribers, you’re in a good spot!
High Retention, Low Churn
How long do your customers stick around? Churn is the rate at which customers cancel their subscriptions, and for most subscription businesses, an annual churn rate of 5-7% is pretty average. If your numbers are close to or lower than this, you’re doing great!
The longer customers stick with you, the more valuable they become, as it saves you the hassle and acquisition costs of finding new ones all the time. A trouble-free, enjoyable customer experience goes a long way in keeping them from hitting that cancel button.
Social Hype and Brand Loyalty
Does your customer base share the love for your products or service on social media? A picture-perfect unboxing can turn casual subscribers into loyal fans who stick around and spread the word on social media. And these engaged customers are more likely to leave glowing reviews and stick around for the long haul.
When your fulfilment is on point, and everything arrives as it should, you’ll have happy customers who rave about your service. Nothing beats a bit of word-of-mouth to keep the momentum going, especially if it goes viral. After all, in this crowded market, a little social hype could be what sets you apart.
Challenges of Scaling a Subscription-Based Business
Scaling a subscription business sounds like a dream come true: more customers, revenue, and buzz around your brand. But (and there’s always a “but,” isn’t there?) with great growth comes great responsibility.
Managing More Orders
More orders coming in sounds great until you realise you have to fulfil all of them quickly and accurately on a recurring basis. Dropping the ball here can lead to late deliveries, incorrect orders, and unhappy customers.
Handling Complex Custom Subscription Models
As your business grows, the variety of options you offer can complicate things. If your subscription program operates on a replenishment model or involves customised options, different customers will want different products at different times. Some may want to skip a month, while others might want to double up on their orders.
Without a solid fulfilment process, you’ll be knee-deep in spreadsheets faster than you can say “personalised subscription boxes”, and it’ll be a logistical headache.
Data and Inventory Management
Running out of stock doesn’t just mean missed sales. It can lead to delayed shipments or unhappy customers who receive unwanted substitutions, which can be damaging when you’re working on making the subscription experience as seamless as possible. On the flip side, overstocking leaves you with excess subscription products, taking up space.
Using the right tools to help you improve stock control can make all the difference. Real-time inventory management and data-driven insights can help you track stock levels, forecast demand, and know exactly when to reorder. With better stock control, you can keep your customers happy and your warehouse running efficiently without excess inventory clogging up space.
Scalable Infrastructure
When you’re growing your business, the last thing you want is to be held back by outdated systems, processes that can’t keep up, or not enough space for your stock. That’s why you need a fulfilment partner that scales with your business, not against it.
Look for a partner specialising in automated fulfilment for eCommerce who uses integrated software and has flexible warehousing that scales to your needs. If you’re launching new products or testing custom subscription options, having the right support in place means your business can grow smoothly.
How to Scale a Subscription eCommerce Business
1. Develop Your Marketing Plan
You’ll need a multi-level marketing plan that includes:
Your Website
Think of your website as your shopfront: it’s got to look good and work like clockwork. If your site’s slow or confusing, new customers will be out the door (or, in this case, closing their browser tabs). Make sure your product descriptions are clear, your images look professional, and your checkout is simple. And don’t forget mobile optimisation! If your eCommerce platform doesn’t work on a phone, you’re missing out on a lot of customers.
Email Marketing
As your business expands, your email strategy needs to level up too. What worked at the start might need a little fine-tuning or even a complete overhaul. Staying flexible, keeping up with trends, and actually listening to your customers through subscription analytics is important – yelling louder won’t do the trick! Take a peek at your data, and you’ll get a clear picture of what your audience cares about (spoiler: it’s probably not those thrown-together ‘deal of the week’ blasts).
Social Media
Social media is often where people go first to find a product or to see what it looks like in real life. Share behind-the-scenes snaps, get your customers to post their own unboxings, and jump on TikTok or Instagram to show your products in action. A little personality goes a long way, and when your customers feel connected, they’re more likely to stick around and spread the word for you.
2. Focus on Retention and Churn
You need to keep a close eye on your customers to know what makes them tick (and what ticks them off). Their feedback will uncover pain points like clunky interfaces, late deliveries, or customer service hiccups. You’ll need to fix these issues before they lead to churn.
Creating target customer personas for each subscription type will give you a clearer idea of who you’re dealing with and what matters to them (e.g., sustainable fulfilment options, express deliveries, etc). By doing some homework, you can narrow down what products and services they value and ensure that your monthly fees are in line with their budget.
Life happens, and your customers’ needs can change. Offering flexible subscription plans is a great way to keep them happy and reduce cancellations. Use your subscription management tools to figure out why people are cancelling – maybe rigid plans aren’t fitting into their lifestyle anymore. Spotted a pattern? It’s probably time to adjust your monthly subscriptions, jazz up your packaging, or get deliveries out the door faster. Being flexible and responsive will keep your customers engaged and prevent churn.
3. Sort Out Your Inventory
Inventory management can make or break your subscription eCommerce business. Too much stock and you’ll tie up cash; too little and you’ll scramble to fulfil orders. It’s all about tracking your stock levels and forecasting demand based on sales trends and seasonality to find the sweet spot.
Using an inventory management system can save you loads of time and hassle. It’ll help you avoid dreaded stockouts and prevent over-ordering. If your subscription model is growing fast, consider automating your inventory tracking so you’ve got one less thing to stress about!
4. Streamline Your Fulfilment
Fulfilment needs to run seamlessly for both you and your customers. After all, the last thing you want is a great customer experience to be let down by late deliveries or confusing shipping options.
While manual processes might have worked when you were just starting out, as your business grows, automating your fulfilment can make a big difference. It reduces errors, speeds up order processing, and frees up your time to focus on other areas. Plus, customers have come to expect real-time tracking, which adds transparency, builds trust and cuts down on those “where’s my order?” queries.
Shipping options are a big part of keeping customers happy. These days, many expect free shipping, and it’s often the tipping point between a completed purchase and an abandoned cart. Offering express shipping for those in a hurry is another smart way to meet varying needs and boost your conversion rates as you grow. A fulfilment partner with a wide network of couriers (like Delta Fulfilment) can help you cut both shipping costs and delivery times so you meet customer expectations without stretching your budget.
And let’s not forget about returns and exchanges. Offering hassle-free returns builds trust and makes your customers more likely to stick with you long-term. Delta Fulfilment’s reverse logistics process guarantees hassle-free, efficient returns, helping you keep that customer relationship intact.
Ready to Scale Your Subscription Service? Let’s Grow Together.
Scaling brings excellent opportunities. But as your subscriber base grows, it’s not just about handling more orders – it’s about keeping everything behind the scenes running smoothly, from stock management to fulfilment and customer service. At Delta Fulfilment, we specialise in subscription fulfilment, offering solutions for different types of subscriptions, including subscription boxes and repeat orders. Based in the UK, we help businesses at every stage of their growth journey, making sure their subscription service scales seamlessly.
Get a quote today and we’ll be in touch to talk through how to grow your subscription service effectively together.