The subscription business model has transformed the way consumers shop and businesses operate — shifting the focus from one-time transactions to long-term relationships. According to Shopify, global ecommerce sales are expected to grow to $8.09 trillion by 2028. 

Why subscriptions win in ecommerce 

Subscriptions aren’t just a trend—they change the game by helping brands drive predictable revenue and build customer loyalty with seamless shopping experiences that keep buyers coming back. Subscriptions offer substantial benefits, making them a preferred choice for both brands and customers.

For businesses:

  • Recurring revenue: Subscriptions ensure a steady income stream, enabling better financial planning and cash flow management

  • Enhanced customer lifetime value (LTV): Loyal subscribers provide higher long-term value compared to one-time buyers

  • Broader insights: With consistent engagement, businesses gather valuable data to refine products and strategies. 

For subscribers: 

  • Convenience: Automated billing and deliveries cater to busy lifestyles

  • Personalization: Tailored bundles and flexible plan options like pausing create experiences customers can't resist

  • Loyalty perks: Exclusive rewards and offers foster long-term relationships 

Thriving in the subscription economy involves more than offering products on a recurring basis. Leading companies like FabFitFun, PupBox, and Nuuly, have found the secret recipe to build a strong customer base and achieve sustainable growth — flexible solutions, actionable insights, and customer-centric strategies.

1. Building loyalty with a subscriber-centric approach 

FabFitFun, the lifestyle subscription box brand loved by millions, works under a member-centric approach that is evident across its operations. This mindset ensures that every feature and service brings value to consumers, keeping them engaged throughout the lifecycle.

By closely listening to their subscribers across channels and using insights from these interactions, the company addresses voluntary churn with a pause option, and involuntary churn through an AI-driven retry model that effectively recovers payments. 

“We’re using the loop behind customer inquiries and social chatter in our community forums to help us spot issues. [...] We’re very customer-driven in our prioritization of what to tackle next and AI is playing a role in that as well,” says Michael Broukhim, Co-Founder and Co-CEO of FabFitFun.

The results? Besides dramatically increasing recovery rates and reducing churn, FabFitFun's ability to react quickly to customer feedback solidified its position as a leader in the subscription ecommerce space.

💡 Learn how FabFitFun uses AI & personalization to elevate the subscriber experience

2. Fueling growth and retention with flexible plans 

PupBox, a subscription box for puppy parents, is the perfect example of how flexible pricing and packaging are key for sustainable growth.

Instead of charging long-term plan fees upfront — leading to high churn and lower LTV — the brand lowers the barrier to entry with different plan options and customizable promotions like discounted boxes, that entice subscribers to stay for longer.

"Recurly gave us the flexibility to play with the plans and promotions. Having that built-in has helped us test and learn what combination of promotions, marketing channels, and term length equate to the highest LTV," shared Ben Zvaifler, CEO. 

💡Grow your business 5x faster with these high-impact tips for subscription success

3. Meeting and exceeding customer expectations by reducing friction 

Nuuly, a circular fashion platform that helps subscribers discover new styles, is committed to providing a frictionless experience. Every step of the journey is designed with customer satisfaction in mind.

Online shoppers expect fast and easy payments. A key aspect of the brand’s philosophy is understanding and addressing the evolving needs of its customer base. Nuuly constantly introduces new features to enrich the customer experience, such as “Check My Return,” that allows users to unlock their next shipment as soon as UPS scans their return or The Thrift Shop — that lets subscribers buy pre-loved clothing from their rental inventory.

By integrating innovation with user-driven solutions, the company has established a unique space in the ecommerce industry: “We’ve seen over 50% growth in the last year, and we believe there’s still a huge opportunity ahead,” says David Hayne, President of Nuuly and Chief Technology Officer at URBN. 

Scaling IT infrastructures is a common challenge for subscription businesses in the DTC sector. With growing transaction volumes comes heightened security and compliance risks. What does it take to build an unshakeable foundation that allows you to deliver frictionless, personalized experiences at scale?

💡 Check out our on-demand webinar: Engineering subscriptions that scale, and learn from the experts who have done it. 

Why Recurly is the trusted partner for ecommerce subscriptions 

Whether it's growing your subscription revenue, increasing speed to market, or scaling globally, we deliver unmatched value to ecommerce subscription brands. Recurly proudly powers +2,200 leading brands and 67 million active subscribers through: 

  • Actionable analytics that help you refine retention strategies 

  • Flexible payment and billing options that let meet subscriber preferences

  • Intelligent retries and dunning campaigns that recover lost revenue effortlessly 

  • Tailored promotions and pause features that keep customers engaged

Are you currently using an ecommerce platform to power your shop or are you considering moving in this direction? Recurly has a native Shopify app and offers headless integrations with BigCommerce and Adobe Commerce. 

Schedule a demo with our team and let’s chat about how we can best support you.