5 Examples of Subscription Business Models That Have Changed E-Commerce

Posted on January 24, 2025 | Updated on January 24, 2025

Subscription business models have revolutionized the e-commerce industry, offering companies a reliable source of revenue while providing customers with personalized experience. From fitness platforms to meal kits, these models have changed how consumers shop and buy products. Using the following subscription business model examples, online shops can gain inspiration and create their own subscription service to drive growth.

What Is a Subscription Business Model for E-Commerce?

A subscription business model in e-commerce is a structure where customers pay a recurring fee in exchange for scheduled product deliveries or ongoing access to a service. This model has become popular among consumers because of its benefits, from convenience to cost savings. It also benefits online businesses because revenue is more predictable, and they can continue to build lasting customer relationships.

Because of the advantages that subscription-based e-commerce provides, the model has experienced explosive growth. Statista says it has doubled in revenue since 2019, generating more than $38 billion in 2023. Customers value subscriptions because they offer a personalized, hassle-free shopping experience, which is why they have increased in popularity.

Subscription services generally fall into three main categories:

  • Replenishment: Regularly delivering essential goods like groceries, personal care items or household supplies.
  • Curation: Handpicked or themed selections of products tailored to customers’ preferences.
  • Access: Exclusive perks such as access to new collections or premium goods.

Subscription Business Model Examples

Since its growth, e-commerce companies have developed unique subscriptions that have created value-driven shopping experiences. Here are the top subscription business model examples offered today.

1. Peloton

A man and a woman high-fiving during a workout session in a home gym.
Source: https://www.dickssportinggoods.com/protips/sports-and-activities/exercise-and-fitness/peloton-membership-features

Exercise bikes and treadmills are Peloton’s centerpiece, but the company now offers a monthly subscription for live and on-demand workout classes for cycling, strength training, yoga and more. When customers purchase exercise equipment from Peloton, they can sign up for a workout subscription. This model allows them to take advantage of guided workouts while making the most of their Peloton machine.

Peloton’s membership is a community-driven platform that keeps users engaged and motivated. Subscribers can participate in:

  • Top instructors lead live classes.
  • Competitions with others through leaderboards.
  • Exercise bootcamps.

Peloton has become a leader in fitness subscriptions because the hardware and software integrate seamlessly into one fitness experience. Users receive fresh content regularly, challenging them to reach new levels in their workout routine. They can even track their own progress over time, keeping customers loyal.

2. Book of the Month

A person holding a stack of colorful hardcover books.
Source: https://www.bookofthemonth.com/

Another great example of a subscription business model is Book of the Month (BOTM). This company caters to book lovers nationwide, offering a curated selection of new and noteworthy titles each month. Subscribers pay a monthly fee to choose one book from a handpicked selection, with the option to add more titles at a discounted price. 

BOTM’s subscription model works because it simplifies the decision-making process for readers. It also introduces them to diverse genres and authors that subscribers may have difficulty finding on their own. Every month, a team of literary experts chooses the book selections, ensuring high-quality options.  BOTM lets subscribers share their picks and reviews within its community and has successfully built a loyal subscriber base since.

3. BarkBox

A pug sitting contentedly surrounded by colorful, movie-themed dog toys.
Source: https://www.barkbox.com/themes/barkbuster-movie-night

What happens when an owner’s dog destroys its puppy toys? The pet parent has to go back out and grab a new one. It can be a hassle for dog lovers, especially when their pup has annihilated their toy within a week. 

BarkBox has provided a new solution for pet lovers, offering a monthly subscription box of toys, treats and care products. Whenever a box appears at their doorstep, furry friends receive a curated assortment of themed goodies to keep them entertained and happy. This subscription business model ensures every subscriber gets a custom-made box by offering personalized options based on a dog’s size, preferences and dietary needs.

BarkBox’s playful branding has also become a delight for pets and their owners. Monthly themes — such as “Tails from the Ice Age!” and “Lick or Treat” — add such excitement that it makes pet parents want more.

4. HelloFresh

A HelloFresh delivery box surrounded by fresh produce.
Source: https://www.hellofresh.com/

HelloFresh has reinvented meal preparation by offering a subscription service that delivers pre-portioned ingredients and easy-to-follow recipes. Subscribers can choose from various meal plans, including options tailored to families, vegetarians, and those with busy schedules.

HelloFresh’s subscription has grown because it removes the hassle of grocery shopping and reduces food waste. It makes home cooking more accessible and convenient and saves customers money and time.

Customers can select their weekly menus and adjust portion sizes to suit their households, offering personalization and flexibility. HelloFresh has become a household name in the meal kit subscription industry with convenience, quality ingredients, and diverse menu options. It has appealed to busy individuals and families seeking fresh, homemade meals without the stress of planning and traveling.

5. Billie

A hand holding a Billie razor against a minimalist background.
Source: https://mybillie.com/products/razor-starter-kit?selected=W304212800

Billie has disrupted the personal care market for women with its subscription-based razor service. Offering high-quality razors at an affordable price, Billie’s subscription model allows customers to receive razor refills on a schedule that suits their needs. 

The brand focuses on convenience, cost savings and inclusivity, appealing to women who value functionality and simplicity in their grooming routines. Billie also stands out for challenging industry norms and promoting body positivity. The brand’s marketing celebrates diversity, appealing to women of all body types and backgrounds. 

Billie’s products also have a reputation for quality. The subscription company claims its razors offer a close shave without causing redness or irritation. Plus, it offers various products —- like shaving cream and exfoliators — to provide an upscale shaving experience for women.

How To Set Up a Subscription Business Model

Building on the success of these subscription business model examples, creating a subscription service can open the door to recurring revenue. Follow the key steps to launch one that delivers value and drives growth.

1. Identify the Niche

Consider gaps in the market or areas where convenience, curation or exclusive access can add value. Doing so will help determine the target audience and the specific needs the subscription service will fulfill.

2. Choose a Subscription Type

Decide whether the model will focus on replenishment, curation or access. Tailor that offering to align with customer preferences and ensure it provides a compelling reason to subscribe.

3. Create Value for Subscribers

Develop a unique value proposition to set the service apart. E-commerce businesses achieve this by highlighting benefits like cost-savings or time efficiency to attract and retain customers.

4. Choose a Platform

Select an e-commerce platform that supports subscription management, payment processing and customer analytics. Shopify is a popular site with more than 4.4 million users globally. By offering various management tools, Shopify makes it easy for businesses to get started.

5. Develop a Pricing Strategy

Set pricing tiers that balance affordability with profitability. Consider offering discounts for annual subscriptions or bundles to incentivize long-term commitments. The right pricing strategy is key because consumers look to subscription service providers to save money on product needs.

Following in the Steps of the Subscription Business Model Examples

The subscription business model examples like Peloton and BarkBox show how incredible a recurring revenue strategy can be in e-commerce. It continues to provide value and convenience, reshaping how companies serve their customers. With e-commerce becoming more competitive, leveraging this model could be the key to standing out and building a sustainable business.

About The Author

Cooper Adwin is the Assistant Editor of Designerly Magazine. With several years of experience as a social media manager for a design company, Cooper particularly enjoys focusing on social and design news and topics that help brands create a seamless social media presence. Outside of Designerly, you can find Cooper playing D&D with friends or curled up with his cat and a good book.

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