The rise of ecommerce subscriptions: what you need to know

The rise of ecommerce subscriptions: what you need to know

The rise of ecommerce subscriptions: what you need to know

Subscription payments offer flexibility for consumers and steady revenue for businesses. Mollie simplifies managing and optimizing your subscription strategy.

Subscription payments offer flexibility for consumers and steady revenue for businesses. Mollie simplifies managing and optimizing your subscription strategy.

18 Jul 2025

Subscription payments have never been more popular. Find out if this model is right for you and why it appeals to both consumers and businesses.

Recurring revenue is now a top priority for businesses. That's why subscription payment models are gaining ground. According to the Subscription Economy Index by Zuora, the subscription economy has grown by more than 435% in nearly a decade.

And all signs point to this momentum continuing. The uncertain recovery from the Covid-19 pandemic has reinforced consumer interest in subscriptions, which offer more flexibility, fewer fixed commitments and greater personalisation — whether in terms of the product, payment or the overall customer experience.

Businesses, meanwhile, reap many benefits from this model: more predictable revenue, stronger customer relationships, and access to valuable data to refine their value proposition and better meet customer expectations.

Subscription services now come in many forms: themed boxes designed to surprise consumers with specialised products, replenishment services for everyday items, and access models that allow users to use a product without owning it.

In light of this enthusiasm, UBS Wealth Management and Bernstein estimate that the subscription economy will reach £1.5 trillion by 2025.

Subscription payments are now an essential pillar of ecommerce. It is therefore time to take stock: how has this model evolved? Can its growth be sustained? And above all, how can companies succeed in a rapidly changing market?

Subscription payments have never been more popular. Find out if this model is right for you and why it appeals to both consumers and businesses.

Recurring revenue is now a top priority for businesses. That's why subscription payment models are gaining ground. According to the Subscription Economy Index by Zuora, the subscription economy has grown by more than 435% in nearly a decade.

And all signs point to this momentum continuing. The uncertain recovery from the Covid-19 pandemic has reinforced consumer interest in subscriptions, which offer more flexibility, fewer fixed commitments and greater personalisation — whether in terms of the product, payment or the overall customer experience.

Businesses, meanwhile, reap many benefits from this model: more predictable revenue, stronger customer relationships, and access to valuable data to refine their value proposition and better meet customer expectations.

Subscription services now come in many forms: themed boxes designed to surprise consumers with specialised products, replenishment services for everyday items, and access models that allow users to use a product without owning it.

In light of this enthusiasm, UBS Wealth Management and Bernstein estimate that the subscription economy will reach £1.5 trillion by 2025.

Subscription payments are now an essential pillar of ecommerce. It is therefore time to take stock: how has this model evolved? Can its growth be sustained? And above all, how can companies succeed in a rapidly changing market?

Subscription payments have never been more popular. Find out if this model is right for you and why it appeals to both consumers and businesses.

Recurring revenue is now a top priority for businesses. That's why subscription payment models are gaining ground. According to the Subscription Economy Index by Zuora, the subscription economy has grown by more than 435% in nearly a decade.

And all signs point to this momentum continuing. The uncertain recovery from the Covid-19 pandemic has reinforced consumer interest in subscriptions, which offer more flexibility, fewer fixed commitments and greater personalisation — whether in terms of the product, payment or the overall customer experience.

Businesses, meanwhile, reap many benefits from this model: more predictable revenue, stronger customer relationships, and access to valuable data to refine their value proposition and better meet customer expectations.

Subscription services now come in many forms: themed boxes designed to surprise consumers with specialised products, replenishment services for everyday items, and access models that allow users to use a product without owning it.

In light of this enthusiasm, UBS Wealth Management and Bernstein estimate that the subscription economy will reach £1.5 trillion by 2025.

Subscription payments are now an essential pillar of ecommerce. It is therefore time to take stock: how has this model evolved? Can its growth be sustained? And above all, how can companies succeed in a rapidly changing market?

Subscription payments have never been more popular. Find out if this model is right for you and why it appeals to both consumers and businesses.

Recurring revenue is now a top priority for businesses. That's why subscription payment models are gaining ground. According to the Subscription Economy Index by Zuora, the subscription economy has grown by more than 435% in nearly a decade.

And all signs point to this momentum continuing. The uncertain recovery from the Covid-19 pandemic has reinforced consumer interest in subscriptions, which offer more flexibility, fewer fixed commitments and greater personalisation — whether in terms of the product, payment or the overall customer experience.

Businesses, meanwhile, reap many benefits from this model: more predictable revenue, stronger customer relationships, and access to valuable data to refine their value proposition and better meet customer expectations.

Subscription services now come in many forms: themed boxes designed to surprise consumers with specialised products, replenishment services for everyday items, and access models that allow users to use a product without owning it.

In light of this enthusiasm, UBS Wealth Management and Bernstein estimate that the subscription economy will reach £1.5 trillion by 2025.

Subscription payments are now an essential pillar of ecommerce. It is therefore time to take stock: how has this model evolved? Can its growth be sustained? And above all, how can companies succeed in a rapidly changing market?

The subscription economy is no longer limited to software

In its early days, the subscription economy was dominated by digital services. Platforms such as Spotify popularised the idea of ‘access rather than ownership’, with simple recurring transactions that were perfectly suited to this type of service.

But today, subscriptions are extending far beyond the digital realm and gaining ground in physical commerce. According to analysis firm Juniper, 45% of recurring revenue will come from physical products by the end of 2022.

This shift is largely due to supply chain disruptions, which have made it even more difficult to access products in stores since the pandemic. Faced with these challenges, consumers are looking for reliable, regular offers without stock shortages. As a result, they are turning to subscriptions to receive their favourite products, discover new products, enjoy a wider choice, greater personalisation and a smoother experience.

Subscription boxes are a perfect example of this trend: cosmetics, pet food, dietary supplements, healthcare products, and more. This type of offer appeals to consumers because it meets recurring needs while offering a novelty that is highly valued. Even more traditional sectors are getting in on the act. The automotive industry, for example, which has long been reluctant to sell online, is now exploring these new models. Companies such as Cazoo and FINN offer long-term rental or subscription offers in response to a highly competitive second-hand market.

And tomorrow? It's a safe bet that these hybrid services—part magazine, part shop, part logistics platform—will continue to reshape the rules of commerce.

In its early days, the subscription economy was dominated by digital services. Platforms such as Spotify popularised the idea of ‘access rather than ownership’, with simple recurring transactions that were perfectly suited to this type of service.

But today, subscriptions are extending far beyond the digital realm and gaining ground in physical commerce. According to analysis firm Juniper, 45% of recurring revenue will come from physical products by the end of 2022.

This shift is largely due to supply chain disruptions, which have made it even more difficult to access products in stores since the pandemic. Faced with these challenges, consumers are looking for reliable, regular offers without stock shortages. As a result, they are turning to subscriptions to receive their favourite products, discover new products, enjoy a wider choice, greater personalisation and a smoother experience.

Subscription boxes are a perfect example of this trend: cosmetics, pet food, dietary supplements, healthcare products, and more. This type of offer appeals to consumers because it meets recurring needs while offering a novelty that is highly valued. Even more traditional sectors are getting in on the act. The automotive industry, for example, which has long been reluctant to sell online, is now exploring these new models. Companies such as Cazoo and FINN offer long-term rental or subscription offers in response to a highly competitive second-hand market.

And tomorrow? It's a safe bet that these hybrid services—part magazine, part shop, part logistics platform—will continue to reshape the rules of commerce.

In its early days, the subscription economy was dominated by digital services. Platforms such as Spotify popularised the idea of ‘access rather than ownership’, with simple recurring transactions that were perfectly suited to this type of service.

But today, subscriptions are extending far beyond the digital realm and gaining ground in physical commerce. According to analysis firm Juniper, 45% of recurring revenue will come from physical products by the end of 2022.

This shift is largely due to supply chain disruptions, which have made it even more difficult to access products in stores since the pandemic. Faced with these challenges, consumers are looking for reliable, regular offers without stock shortages. As a result, they are turning to subscriptions to receive their favourite products, discover new products, enjoy a wider choice, greater personalisation and a smoother experience.

Subscription boxes are a perfect example of this trend: cosmetics, pet food, dietary supplements, healthcare products, and more. This type of offer appeals to consumers because it meets recurring needs while offering a novelty that is highly valued. Even more traditional sectors are getting in on the act. The automotive industry, for example, which has long been reluctant to sell online, is now exploring these new models. Companies such as Cazoo and FINN offer long-term rental or subscription offers in response to a highly competitive second-hand market.

And tomorrow? It's a safe bet that these hybrid services—part magazine, part shop, part logistics platform—will continue to reshape the rules of commerce.

In its early days, the subscription economy was dominated by digital services. Platforms such as Spotify popularised the idea of ‘access rather than ownership’, with simple recurring transactions that were perfectly suited to this type of service.

But today, subscriptions are extending far beyond the digital realm and gaining ground in physical commerce. According to analysis firm Juniper, 45% of recurring revenue will come from physical products by the end of 2022.

This shift is largely due to supply chain disruptions, which have made it even more difficult to access products in stores since the pandemic. Faced with these challenges, consumers are looking for reliable, regular offers without stock shortages. As a result, they are turning to subscriptions to receive their favourite products, discover new products, enjoy a wider choice, greater personalisation and a smoother experience.

Subscription boxes are a perfect example of this trend: cosmetics, pet food, dietary supplements, healthcare products, and more. This type of offer appeals to consumers because it meets recurring needs while offering a novelty that is highly valued. Even more traditional sectors are getting in on the act. The automotive industry, for example, which has long been reluctant to sell online, is now exploring these new models. Companies such as Cazoo and FINN offer long-term rental or subscription offers in response to a highly competitive second-hand market.

And tomorrow? It's a safe bet that these hybrid services—part magazine, part shop, part logistics platform—will continue to reshape the rules of commerce.

Ecommerce subscriptions: the challenge of churn

One of the advantages often highlighted by the subscription model is the reduction in customer acquisition costs over the long term. In theory, when a customer subscribes in January, they remain active throughout the year, which means you don't have to convince them again every month. Less marketing effort, less advertising expenditure. At least, that's what the theory says.

But as this model becomes more widespread, its limitations are becoming more apparent. The unsubscription rate — or churn — is now one of the biggest challenges for subscription-based ecommerce businesses. Offering free trials, welcome offers or very attractive discounts may seem like an effective strategy for rapid growth. But if a significant proportion of customers leave at the end of the promotional period, the real value of this approach collapses. The challenge is not just to convert, but to build loyalty.

Investors are also becoming more vigilant. They know that a high churn rate means that acquisition costs are not generating sustainable added value. The most mature companies understand that it is not enough to attract a large number of customers quickly. You need to build a consistent experience that is aligned with expectations and maintain strong engagement over time. This requires a more realistic pricing policy, better targeted offers and attentive customer service that can enhance customer satisfaction.

As a result, some brands are scaling back overly aggressive promotions and revising their pricing strategy to attract a more stable customer base—loyal, committed customers who stay for months or even years.

One of the advantages often highlighted by the subscription model is the reduction in customer acquisition costs over the long term. In theory, when a customer subscribes in January, they remain active throughout the year, which means you don't have to convince them again every month. Less marketing effort, less advertising expenditure. At least, that's what the theory says.

But as this model becomes more widespread, its limitations are becoming more apparent. The unsubscription rate — or churn — is now one of the biggest challenges for subscription-based ecommerce businesses. Offering free trials, welcome offers or very attractive discounts may seem like an effective strategy for rapid growth. But if a significant proportion of customers leave at the end of the promotional period, the real value of this approach collapses. The challenge is not just to convert, but to build loyalty.

Investors are also becoming more vigilant. They know that a high churn rate means that acquisition costs are not generating sustainable added value. The most mature companies understand that it is not enough to attract a large number of customers quickly. You need to build a consistent experience that is aligned with expectations and maintain strong engagement over time. This requires a more realistic pricing policy, better targeted offers and attentive customer service that can enhance customer satisfaction.

As a result, some brands are scaling back overly aggressive promotions and revising their pricing strategy to attract a more stable customer base—loyal, committed customers who stay for months or even years.

One of the advantages often highlighted by the subscription model is the reduction in customer acquisition costs over the long term. In theory, when a customer subscribes in January, they remain active throughout the year, which means you don't have to convince them again every month. Less marketing effort, less advertising expenditure. At least, that's what the theory says.

But as this model becomes more widespread, its limitations are becoming more apparent. The unsubscription rate — or churn — is now one of the biggest challenges for subscription-based ecommerce businesses. Offering free trials, welcome offers or very attractive discounts may seem like an effective strategy for rapid growth. But if a significant proportion of customers leave at the end of the promotional period, the real value of this approach collapses. The challenge is not just to convert, but to build loyalty.

Investors are also becoming more vigilant. They know that a high churn rate means that acquisition costs are not generating sustainable added value. The most mature companies understand that it is not enough to attract a large number of customers quickly. You need to build a consistent experience that is aligned with expectations and maintain strong engagement over time. This requires a more realistic pricing policy, better targeted offers and attentive customer service that can enhance customer satisfaction.

As a result, some brands are scaling back overly aggressive promotions and revising their pricing strategy to attract a more stable customer base—loyal, committed customers who stay for months or even years.

One of the advantages often highlighted by the subscription model is the reduction in customer acquisition costs over the long term. In theory, when a customer subscribes in January, they remain active throughout the year, which means you don't have to convince them again every month. Less marketing effort, less advertising expenditure. At least, that's what the theory says.

But as this model becomes more widespread, its limitations are becoming more apparent. The unsubscription rate — or churn — is now one of the biggest challenges for subscription-based ecommerce businesses. Offering free trials, welcome offers or very attractive discounts may seem like an effective strategy for rapid growth. But if a significant proportion of customers leave at the end of the promotional period, the real value of this approach collapses. The challenge is not just to convert, but to build loyalty.

Investors are also becoming more vigilant. They know that a high churn rate means that acquisition costs are not generating sustainable added value. The most mature companies understand that it is not enough to attract a large number of customers quickly. You need to build a consistent experience that is aligned with expectations and maintain strong engagement over time. This requires a more realistic pricing policy, better targeted offers and attentive customer service that can enhance customer satisfaction.

As a result, some brands are scaling back overly aggressive promotions and revising their pricing strategy to attract a more stable customer base—loyal, committed customers who stay for months or even years.

Why a good subscription payment strategy makes all the difference

What do subscription-based businesses need to focus on to remain competitive in a constantly changing market?

Among the key trends of recent years, the explosion of online payment methods has taken centre stage. Digital wallets, local solutions such as iDEAL and Bancontact, deferred payments such as ‘Buy Now, Pay Later’... Habits have changed. Gone are the days when a simple PayPal account or international card fees were enough. Payment management is now a strategic tool in its own right, serving to enhance the user experience and build customer loyalty.

In an ultra-competitive environment, offering the payment methods best suited to subscribers' expectations is essential. Beyond traditional methods, it is essential to integrate the local solutions preferred in each market. This optimisation of the payment journey not only increases conversions, but also strengthens customer satisfaction and engagement in the long term.

Finally, an effective payment strategy also requires good communication about security, flexibility and transparency. This builds trust and is therefore a decisive factor for any business that wants to make subscriptions a driver of sustainable growth.

What do subscription-based businesses need to focus on to remain competitive in a constantly changing market?

Among the key trends of recent years, the explosion of online payment methods has taken centre stage. Digital wallets, local solutions such as iDEAL and Bancontact, deferred payments such as ‘Buy Now, Pay Later’... Habits have changed. Gone are the days when a simple PayPal account or international card fees were enough. Payment management is now a strategic tool in its own right, serving to enhance the user experience and build customer loyalty.

In an ultra-competitive environment, offering the payment methods best suited to subscribers' expectations is essential. Beyond traditional methods, it is essential to integrate the local solutions preferred in each market. This optimisation of the payment journey not only increases conversions, but also strengthens customer satisfaction and engagement in the long term.

Finally, an effective payment strategy also requires good communication about security, flexibility and transparency. This builds trust and is therefore a decisive factor for any business that wants to make subscriptions a driver of sustainable growth.

What do subscription-based businesses need to focus on to remain competitive in a constantly changing market?

Among the key trends of recent years, the explosion of online payment methods has taken centre stage. Digital wallets, local solutions such as iDEAL and Bancontact, deferred payments such as ‘Buy Now, Pay Later’... Habits have changed. Gone are the days when a simple PayPal account or international card fees were enough. Payment management is now a strategic tool in its own right, serving to enhance the user experience and build customer loyalty.

In an ultra-competitive environment, offering the payment methods best suited to subscribers' expectations is essential. Beyond traditional methods, it is essential to integrate the local solutions preferred in each market. This optimisation of the payment journey not only increases conversions, but also strengthens customer satisfaction and engagement in the long term.

Finally, an effective payment strategy also requires good communication about security, flexibility and transparency. This builds trust and is therefore a decisive factor for any business that wants to make subscriptions a driver of sustainable growth.

What do subscription-based businesses need to focus on to remain competitive in a constantly changing market?

Among the key trends of recent years, the explosion of online payment methods has taken centre stage. Digital wallets, local solutions such as iDEAL and Bancontact, deferred payments such as ‘Buy Now, Pay Later’... Habits have changed. Gone are the days when a simple PayPal account or international card fees were enough. Payment management is now a strategic tool in its own right, serving to enhance the user experience and build customer loyalty.

In an ultra-competitive environment, offering the payment methods best suited to subscribers' expectations is essential. Beyond traditional methods, it is essential to integrate the local solutions preferred in each market. This optimisation of the payment journey not only increases conversions, but also strengthens customer satisfaction and engagement in the long term.

Finally, an effective payment strategy also requires good communication about security, flexibility and transparency. This builds trust and is therefore a decisive factor for any business that wants to make subscriptions a driver of sustainable growth.

Develop your ecommerce subscription strategy with Mollie

At Mollie, we simplify payments to help ecommerce businesses grow. Our solution integrates easily with your website and gives you access to numerous integrations to manage your subscriptions and billing, with high-quality service and support. This is thanks in particular to our advanced integration with Chargebee.

Looking to define the right subscription model for your business?

Request a free consultation with one of our Mollie experts now.

At Mollie, we simplify payments to help ecommerce businesses grow. Our solution integrates easily with your website and gives you access to numerous integrations to manage your subscriptions and billing, with high-quality service and support. This is thanks in particular to our advanced integration with Chargebee.

Looking to define the right subscription model for your business?

Request a free consultation with one of our Mollie experts now.

At Mollie, we simplify payments to help ecommerce businesses grow. Our solution integrates easily with your website and gives you access to numerous integrations to manage your subscriptions and billing, with high-quality service and support. This is thanks in particular to our advanced integration with Chargebee.

Looking to define the right subscription model for your business?

Request a free consultation with one of our Mollie experts now.

At Mollie, we simplify payments to help ecommerce businesses grow. Our solution integrates easily with your website and gives you access to numerous integrations to manage your subscriptions and billing, with high-quality service and support. This is thanks in particular to our advanced integration with Chargebee.

Looking to define the right subscription model for your business?

Request a free consultation with one of our Mollie experts now.

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Table of contents

Table of contents

Table of contents

Table of contents

MollieGrowthThe rise of ecommerce subscriptions: what you need to know
MollieGrowthThe rise of ecommerce subscriptions: what you need to know
MollieGrowthThe rise of ecommerce subscriptions: what you need to know