Nov 15, 2024
Could bundling be the biggest untapped opportunity for merchants in the subscription business? A recent report from the Subscription Trade Association (SUBTA) estimates that eCommerce subscriptions account for $300 billion in annual revenue, with subscriptions as a whole expected to grow by 50% in 2024. This growth isn’t necessarily limited to new subscriptions. Once consumers subscribe, they are more likely to add on or bundle additional products or services. For example, in the beauty industry alone, the average order value (AOV) of subscriptions is up 12% year-over-year. While certain industries, such as streaming, have embraced bundling subscriptions with complementary services, retailers may want to take note. A report from Recurly suggests allowing customers to personalize subscriptions contributes significantly to retention: 28% of companies offered ways to personalize subscriptions, resulting in $2.2 billion in incremental revenue. Most subscription-reliant businesses in this economy need to rely on retaining and adding value for loyal customers. Allowing them to customize their own subscription bundles may be one of the best ways to do so. Let’s look at some of the current challenges toward implementing a subscription bundling strategy today, and how composable commerce can help ease this process.
