Types of Subscription Models for Shopify Merchants

Not all subscriptions are created equal. Choosing the right model depends on your products, customer behavior, and brand strategy. Below are the three main types:

1. Replenishment Subscriptions

These are ideal for consumable things customers use regularly and need to restock.

Examples:

• Coffee or tea
• Pet food
• Supplements
• Skincare products

The goal is convenience. The customer gets what they need without thinking about reordering every month.

Benefits:

• Low churn due to high product necessity
• Easy to forecast and manage operationally
• Allows for volume-based pricing (e.g., subscribe and save)

2. Curation Subscriptions

These offer variety and discovery. You send a hand-picked selection of items, often centred around a theme.

Examples:

• Beauty boxes
• Book clubs
• Fashion/accessory kits
• Food and beverage samplers

Benefits:

• High perceived value (especially if personalized)
• Stronger emotional engagement
• Ideal for gift purchases or seasonal promotions

However, curation boxes do come with higher fulfilment complexity and may see higher churn if novelty wears off.

3. Access Subscriptions

This model unlocks access to exclusive content, products, or experiences.

Examples:

• Premium content (courses, media, etc.)
• Early access to new product drops
• Membership clubs with perks
• Personalized services (coaching, styling)

Benefits:

• Creates a “velvet rope” effect, customers feel special
• Can be applied to digital or service-based businesses
• Offers potential for tiered pricing plans

Best Practices for Implementing Subscriptions on Shopify

Successfully running a subscription program requires more than just adding a “subscribe” button to your product page. Here’s what it takes to get it right:

1. Use a Dedicated Subscription App

Shopify requires apps to handle recurring billing due to security and compliance reasons. Leading options include:

• Loop Subscriptions
• Recharge
• Seal
• Appstle

These platforms let you manage renewals, offer “skip/pause” flexibility, build workflows for upsells, and customize your subscriber experience.

2. Design a Seamless User Experience

A clunky subscription flow = higher drop-off.

Make sure your subscription options are:

• Clearly explained on the product page
• Easy to add to cart
• Flexible (let customers pause, skip, or change frequency)

Pro tip: Offer incentives like 10% off when you subscribe, or a free gift after 3 renewals to increase conversion.

3. Communicate Proactively

Keeping subscribers informed reduces churn. Send emails for:

• Upcoming renewal reminders
• Shipment tracking
• Milestones (e.g., “You’ve been a subscriber for 6 months!”)
• Upsell or product suggestions based on past behavior

Good communication builds trust and turns subscribers into superfans.

4. Track Metrics and Optimize

Focus on key subscription metrics like:

• MRR (Monthly Recurring Revenue)
• Churn Rate
• Average Subscription Length
• LTV (Lifetime Value)

Use this data to experiment with pricing, cadence, and offers. For example, if churn spikes at month 3, you might test a loyalty perk that kicks in at month 2.5.

Is a Subscription Model Right for Your Business?

Before jumping in, ask yourself some critical questions:

1. Does your product lend itself to repeat purchases?

Subscriptions work best when:

• Customers use the product regularly
• There’s a clear reason to buy again
• The reorder window is consistent

If you sell custom furniture or wedding dresses, not so much. But if you're in beauty, food, wellness, or pet care, you're in a prime spot.

2. Do you have the operational bandwidth?

Subscriptions add operational complexity. You'll need to:

• Monitor churn and manage subscriber relationships
• Handle inventory forecasting with precision
• Prepare for customer service requests (pauses, skips, cancellations)

Make sure you have processes (and subscription software) in place before scaling too fast.

3. Can you provide ongoing value beyond just the product?

People stick around for value, not just convenience. Ask:

• Can you offer exclusive content or perks?
• Will subscribers feel like they're part of something special?
• Is there a clear advantage over just ordering once?

The more emotional or experiential value you can layer in, the better your retention.

4. Do you understand your customer’s buying habits?

Consider running surveys or interviews to learn how often customers want to reorder. This helps tailor delivery frequency and minimize churn from subscription fatigue.

Final Thoughts: Why Subscriptions Are the Future of Shopify Ecommerce

The eCommerce industry is changing dramatically. The best brands are focusing more on retention because of increasing ad costs, CAC difficulties, and growing competition. In terms of maintaining relationships and maximizing customer value, subscriptions are one of the most powerful tools available not to mention the revenue they bring.

This is not something that is easy to achieve. The best subscription programs are purposeful. They combine customer behaviour, operational efficiency, and a brand’s evolving vision into one cohesive flow.

If you are new to this or looking to enhance your current program, keep in mind this core principle: it’s not a feature, but rather a transformative tool that drives growth.

Ready to Take the Leap?

Want help building a high-performance subscription strategy for your Shopify store? Loop Subscriptions is built to help brands like yours scale with customizable widgets, advanced analytics, and hands-on support.

→ Book a free demo with Loop Subscriptions