‘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?
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.
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