From meal kits to ready-to-wear outfits to jewelry rentals, subscription box businesses are sprouting up for a wide range of products. What was once a novelty is now becoming a staple for the modern consumer as customized subscriptions become more and more popular.
What’s the appeal?
Well, for starters, subscription boxes take the time and effort out of shopping. In an economy where convenience is king, this is a major selling point. Most of the time, you don’t even need to spend much time online picking out what you want as a lot of companies offer curated services based on your style, what you like to eat, etc.
These customized shopping options free up a significant amount of time that would be spent driving to the store and picking things out, not to mention the complete cut-out of impulse buying, crowds, and extra stress if you already have a busy schedule.
In addition to subscription boxes that offer variety, others provide staples on an ongoing basis—think dog food, soap, beauty products—which can save a lot of time. You know what to expect, and receive a box at exactly the right time before you run out of a product.
Usually consumers pay a regular fee, which is convenient for budget forecasting. Most subscription box businesses don’t require you to lock into a contract, which is an added benefit. You’re free to try the service and cancel at any time in most cases. There are usually incentives for staying on board, though, such as discounts for customer loyalty or if you decide to keep all the items you receive instead of return some.
Plus, who doesn’t love having a package show up at their doorstep? It’s like giving yourself a gift.
Recurring Billing Merchant Services
If you already have a subscription box business or are thinking of starting one, accepting credit cards from your customers is a must.
Recurring billing is the typical payment processing structure for subscription box businesses. Your customers sign up to be billed at regular intervals, usually once a month, unless they opt out of the service—thus extending convenience to your side of the street, too, since recurring billing is automated and syncs with your accounting platform.
This makes it even more convenient for your customers, but there are also some common risks for this model, including chargebacks. You will want to make sure you’re very clear and up-front with your customers, letting them know they are entering a recurring billing contract when they sign up for your subscription box service.
BankCard USA provides complimentary chargeback prevention support with our recurring billing merchant accounts to help alleviate these risks. Our secure online payment gateways allow your customers to pay directly on your ecommerce website and easily enter a subscription billing cycle.
We facilitate credit card and ACH payment processing, so you can give your customers the option of using a card or having the funds pulled from a checking account. Funds hit your merchant account by the next business day.
We also offer retail options, such as POS systems and credit card terminals, and virtual terminals if you accept payments over the phone. Multi-channel processing is all connected through one platform, allowing you to efficiently manage customer payments from multiple business locations.
Adding a subscription box service to your business is a great way to gain new customers and retain existing ones. It’s also a useful tool to keep all of your customers updated with new products and samples to try. Our experience with this model allows us to customize our support to meet your business’s specific needs.
Dedicated customer service, technical support, fraud prevention, and integration support are also available around the clock for our subscription box merchant accounts. For more information about our subscription box merchant services and credit card processing options, please reach out below for a free consultation.