Ecommerce Trend for 2014: Buying Into the Subscription Service Model
Companies like Birchbox and Bitters + Bottles illustrate the benefits of subscription services: recurring revenue and deep customer relationships.
By Matt Villano Originally published Nov 19, 2013
Opinions expressed by Entrepreneur contributors are their own.
Ecommerce
Healthful snacks. Underwear. Software. More types of businesses are employing e-commerce subscription models.
Led by pioneers such as Birchbox, the cosmetics service that claims some 400,000 subscribers, the model is being embraced at a rapid pace by consumers and the venture capital community. Zuora, a software-as-a-service company that enables subscription commerce and billing, announced in September that it had raised $50 million in a round of financing that brings its total capital to $132.5 million.
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