As the business world evolves from a mostly transactional model to a more relationship-driven one, the popularity of recurring revenue streams has risen among ecommerce and other digital applications. Financial services giant, UBS, expects the subscription economy to grow by 18% per year, doubling to $1.5 trillion by 2025.
This trend is driven by a variety of factors:
The caveat is that incorrect implementation of a recurring revenue model can hurt your business. Application owners that want to make the switch should do it with the right technology.
Chargebee does a great job of simplifying the implementation and management of recurring billing. Some of its most valuable features include:
ChargeBee’s fast and easy setup is ideal for marketplace startups that want to implement and test subscriptions as part of their revenue model. It can also make recurring billing, collection and promotions more efficient.
RangeMe is a B2B product discovery marketplace that connects suppliers with retailers like Target, Whole Foods and Sephora. They experienced high churn rates due to failed payments.They also struggled to implement discounts that could increase subscription conversions. ChargeBee’s dunning process helped them to reduce churn rates dramatically, while automated discount coupons brought in more than 2,000 new subscribers.
Deliverr uses third-party warehouse space as fulfillment centres for merchants on Shopify, eBay, Amazon and other marketplace platforms. Manual invoicing and payment reminders resulted in hundreds of thousands of unpaid subscriptions. They used Chargebee to automate billing and accounts receivable which reduced unpaid invoices by 80%.
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