Subscription commerce
In subscription commerce, customers receive products or services on a recurring basis. Delivery or usage plans and billing need to match.
What is subscription commerce?
Subscription commerce is an online business model in which customers receive products or services repeatedly. The agreement sets out matters including frequency, price and changes to the subscription. Delivery or access plans and billing must stay aligned. Recurring payments can be part of the model; they describe the movement of money, rather than the entire customer relationship.
A fictional seed shop offers a monthly box. Under the example agreement, customers may skip the next delivery cycle that has not yet been billed. The planned workflow reflects and confirms this single pause in both the delivery plan and billing. The subscription continues in this example; neither a shipment order nor a new charge should be triggered for the skipped cycle.
Sources
Related terms
- Recurring paymentRecurring payments charge an authorised payment method at agreed intervals. Amount, payment attempt and service status remain separate.
- Payment service providerA PSP supports businesses with electronic payments. Payment methods, processing and additional services depend on the offering.
- Digital walletA digital wallet uses saved payment methods or a wallet balance for payment. Device support and the shop integration must work together.
- Buy now, pay laterBNPL enables a purchase with later payment or instalments. The customer’s payment plan and settlement with the merchant are considered separately.
- Pay by invoiceWhen customers pay by invoice, they receive goods or services and pay later by the agreed due date. The invoice and receipt of payment are tracked separately.
- RefundA refund returns all or part of an amount already paid. Returning money and returning goods are separate processes.
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