Member Exclusive, Payments

‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth

  • As more consumers started subscribing to various purchases during the pandemic, Recharge saw its own growth in revenue.
  • But are subscription services enough to stand on as a payments company?

Email a Friend

‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth

Covid has reshaped shopping, not only in terms of going online to buy stuff, but also in terms of how consumers go about these purchases. 

The Amazon-minted one-click buy is not the only thing that’s in vogue, it seems. The subscribe button is clicking with consumers more than ever. 

In just under a decade, subscription business revenue grew by 437%, according to a survey by Zuora, a subscription software provider. The global subscription e-commerce market is estimated to reach a market size of $478 billion by 2025, growing at a CAGR of 68% during the forecast period 2019-2025, according to a report by WiseGuy Research Consultants.

When there are so many unknowns floating around, people may seek comfort in brands they already recognize and trust. That whole sense of serendipity you have when you go to a physical store is sort of lost in an online setting, And in that case, consumers may just be looking for a shortcut to get to the products they know and trust. Subscriptions can act as a solution.

“A time of enormous uncertainty may be leading people to value the stability and predictability of finding something they love and knowing they can count on its arrival on a regular basis,” said Stephanie Lemmerman, CFO of Recharge, a company that provides ecommerce subscription solutions.

This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “‘E-commerce subscriptions are about stability and predictability for consumers’: Behind Recharge’s recent growth”

Member Exclusive, Payments

Payments Briefing: B2B payments are slowly catching up with B2C

  • This week, we look at how B2B transactions are going digital.
  • Bar Geron, co-founder and CEO of payments firm Balance, says that B2B ecommerce is following the same trends as B2C – just some years later.
Ismail Umar | January 20, 2022

With $1 billion funding round, gears up for Web3

  • London-based raised $1 billion dollars in its Series D round of funding, which saw the firm valued at $40 billion.
  • The firm has three major projects following the funding: a push for Web3, expansion into the US market, and additions of new solutions to its platform.
Subboh Jaffery | January 19, 2022
Member Exclusive, Payments

Payments Briefing: Behind Papaya’s bill payment technology

  • This week, we take a look at how Papaya uses AI to simplify bill payments for consumers and merchants.
  • We also explore PayPal’s entry into the stablecoin race, and how payments are increasingly becoming “invisible”.
Ismail Umar | January 13, 2022

Marcus by Goldman Sachs adds GM as second co-branded credit card

  • GM is going all digital by partnering with Marcus by Goldman Sachs and Mastercard to launch its new rewards card and loyalty program.
  • This represents Marcus' second big retail partnership after issuing the Apple Card in 2019.
Iulia Ciutina | January 13, 2022
Member Exclusive, Payments

Payments Briefing: 8 trends that will define 2022

  • We welcome the new year with our very first weekly Payments Briefing.
  • This week, we explore the most important trends that will shape the payments industry in 2022.
Ismail Umar | January 06, 2022
More Articles