Your product as a subscription: everything’s arranged with Mollie Subscriptions
August 26, 2020
An increasing number of online shops are offering product subscriptions – from razors to literature, condoms to wine, nappies to contact lenses. That’s unsurprising, considering its many advantages. Thinking of heading in that direction? You can offer your first products using a subscription model in no time with Mollie Subscriptions.
The subscription model can be very interesting. That’s because it turns new customers into ‘returning customers’. After all, new orders will be automatically placed for them in each period.
That means you can devote your attention to bringing in new customers and generate a stable and predictable cash flow. Therefore, it’s unsurprising that many online entrepreneurs are pleased with this business model and its recurring revenues.
So how does this work for your customers, and how can you ensure that their recurring orders are automatically paid? Mollie Subscriptions will take care of that so you can stay focused on the growth of your customer base.
How can your customers pay for subscriptions?
Customers who visit your online shop will notice that they can also subscribe to their favourite products. They can do so by simply ticking a box during checkout. When they tick the box, they give their permission for future amounts to be direct debited.
After that, customers pay for their current order using one of the payment methods that you offer, such as iDEAL, Bancontact or credit card. At that point, their subscription will be activated.
Mollie Subscriptions then ensures that the correct amount of the subscription is automatically collected for each period. That can be per week, month or year, depending on your chosen subscription model.
The big advantage is that consumers don’t have to go through the ‘payment barrier’ repeatedly. That’s better for your customers, conversion and your turnover.
Turn your products into subscriptions
Getting started with selling subscriptions doesn’t have to be complicated.
“With Mollie Subscriptions, you can easily indicate when and at what frequency your customer has to pay,” said Julian Kuin, Head of Subscriptions at Mollie. "You link this payment plan to a product, then it immediately appears as a subscription option in your online shop. That’s it!”
An order will automatically appear in your eCommerce platform when Mollie Subscriptions automatically collects the funds in the next period (unless you turn off that option). “That means you know exactly when you can send the order. You don’t have to worry about it anymore, other than sending off the product, of course”, said Kuin.
There is a risk of a reversal of payment with credit card and SEPA direct debit payments. For instance: your customer doesn’t recall why money was debited, and their bank asks for a refund. Mollie Subscriptions will automatically follow up on these chargebacks for you by sending your customer a payment link with a request to settle this amount.
Of course, you can avoid customers from charging back their funds. You can reduce that risk by informing them in advance of a withdrawal for their subscription. For example, by using an auto-generated email. Inform them that the products will be on their way soon and that funds will be withdrawn from the account.
Want to know more?
Check Mollie Subscriptions