A recurring subscription enables you to bill clients on a recurring schedule for goods and services.
Note:
This feature is only available with the Business and Premium package.
You can provide subscriptions and receive recurring payments for one or more items. The billing cycle can be adjusted to daily, weekly, biweekly, monthly, quarterly, semi-annually, or annually. With recurring subscriptions, you can market cuisine, daily items, makeup, subscription crates, access to membership, accept regular contributions, and more.
You require Lightspeed Payments or Stripe payment method to establish recurring subscriptions.
Table of Contents
- Understanding how recurring subscriptions work
- Integrating recurring subscriptions into your store
- Setting unique subscription pricing for product variations
- Applying discount codes to subscriptions
- Overseeing subscriptions
- Modifying automated emails
- Halting recurring subscription
- Recurring subscriptions for clients
Understanding how recurring subscriptions work
To activate subscriptions in your store, you must link your store to Stripe.
For each product, you establish a billing period that remains fixed once configured. You can enable customers to purchase a product as a one-time buy or as a subscription. The subscription duration is exhibited on the storefront for items with a subscription option solely. If you allow a one-time purchase for an item also, the subscription duration will be displayed on the product page instead of the storefront.
Purchasers can pay for their subscription with a debit or credit card. Upon subscribing to your product, they will be billed automatically. Customers can manage subscriptions in their customer account — cancel or alter payment details. The subscription cannot be put on hold.
Note that If a customer pays for shipping, they will be billed for it every time during the subscription. For example, a customer subscribed to a $10 shampoo that has a $5 shipping fee. In total, it’s $15. The subsequent charges will also be $15 — precisely the same amount they paid initially.
If you vend products with choices and a customer subscribed for a specific one, e.g., a spearmint-flavored cookie box, they will be subscribed to that specific product variation. If a customer changes their preference, they must cancel the current subscription and re-subscribe to another product variation, e.g., a cocoa cookie box.
Whenever a customer is billed for a subscription, you receive an email notification, and a new order is generated. Additionally, you receive an email in case of billing issues or subscription cancellation.
You can personalize prices to make your subscriptions more attractive:
- Sign up fee. Allows you to raise or lower the price of the initial subscription order. For instance, you can set the price for the first subscription order at $20, and for each subsequent subscription order at $15.
- Free trial. If you set the registration fee at $0, your customers won't be billed for the first order in subscriptions. This enables you to offer a trial period for your clientele.
- Subscribe and save. If you offer a product for a single purchase, you can reduce its subscription price to encourage customers to make repeat orders. For example, a one-time price for coffee beans is $20, while the monthly subscription price is $15. You can also establish different pricing for the product variations that you sell as subscriptions.
Altering the subscription price won’t affect existing customers, only new subscribers.
Subscription analytics are available in your store reports. To view reports, navigate to Dashboard and scroll down to Subscription performance.
Incorporating recurring subscriptions into your store
To commence vending your items on a regular basis, you must activate the subscription feature in your outlet and append products with subscription pricing.
Before you proceed with the setup, ensure that your outlet meets the prerequisites:
- Link Stripe as a mode of payment.
- Include stipulations for employing recurring subscriptions in your outlet’s Terms & Conditions.
Make sure to incorporate details about payment conditions, non-refundable charges, usage restrictions, termination of subscriptions. You can peruse more about Terms & Conditions for subscription services in a TermsFeed blog post.
To append subscriptions to your outlet:
- From your outlet administration, navigate to Settings → General → Cart & Checkout.
- In the Sell subscriptions section, toggle on the Product subscriptions to enable products with subscription pricing.
- Proceed to Catalog → Products.
- Formulate a new product or opt for the existing one you intend to vend with recurring payments.
- In the Pricing segment on the product editing page, click Manage pricing options → Sell by subscription and toggle it on.
- A Billing period field will emerge. Click on the dropdown menu to specify how frequently you wish to charge your customers for this product — Once per day, Once per week, Once per 2 weeks, Once per month, Once per 3 months, Once per year:
- Check the Allow purchase without subscription box, so your customers can opt between one-time purchase and subscription. Otherwise, they can solely purchase a product with a subscription.
- (optional) Click Set up one-time purchase price and input the one-time cost to make a single purchase more expensive than a subscription pricing. If the product has variations, you can set a distinct one-time purchase price for each variation.
- (optional) Click Set up price with signup fee and insert the price for the initial order on subscription. Enter the "0" price if you desire to provide the first order free of charge and offer a trial.
- Click Save.
Completed! Now your customers can subscribe to your products. With each new charge, your inventory will be updated automatically.
Assigning individual subscription pricing for product variations
When you offer customers to subscribe to a product with variations options, you can designate individual prices for each option. For example, if you vend poke lunches, you can set the price at $6 for a large bowl and $5 for a small bowl.
Similarly, you can establish distinct pricing for each option of a product that you vend both as a subscription and a one-time purchase. For instance, meat and vegetarian poke bowls will have different costs as a one-time purchase and as a subscription:
To set up the one-time purchase price for product options:
- From your outlet administration, go to Catalog → Products and select a subscription product.
- Click the Options tab, then click Variations.
- Beside the option you wish to alter, click Manage.
- In the Price field, input the subscription price to allocate an individual subscription price for the option.
- If the product is sold as a one-time purchase, you can set an individual price for the option that is sold as a one-time purchase. In the One-time purchase price field, input a price higher than the subscription price.
- Click Ok. Then Save.
Applying promo codes for subscriptions
You can provide discount coupons with your subscription. For instance, you can dispatch a patron a code for a 100% discount, serving as a complimentary trial before committing to a recurring payment.
To prevent the discount from applying to subsequent orders, ensure to add usage restrictions on a code. For example, restrict the discount to a solitary use or once per customer. Thus, the discount will be applied solely to the initial order.
If a code lacks limitations, the discount will extend to the inaugural order and all subsequent orders in the subscription.
Managing subscriptions
You can monitor all recurring subscriptions in the My Sales → Subscriptions segment in your outlet administration. Here, you'll find all subscriptions your outlet ever encountered, encompassing active, terminated, subscriptions with payment failures, and those necessitating confirmation.
To streamline the search for a particular subscription, tap on Filter and specify how you desire subscriptions to be exhibited. This can aid in prioritizing your order processing. For instance, you can click Filter → Next Charge Date and choose Next 7 days. Thus, you'll discern which subscription products necessitate preparation and shipment foremost.
You can also scrutinize all the orders made within a single subscription. Suppose a customer subscribed to a cosmetic box monthly, a hair treatment box monthly, and a shaving set monthly. To view all orders within a subscription, navigate to My Sales → Subscriptions, locate the subscription, and click Orders created: 3 orders. You'll observe all orders placed within the subscription.
While processing an order, you can modify its status, edit the order, or print it in My Sales → Orders.
Reaching out to customers
If you need to confirm the delivery address or clarify subscription particulars, you can always reach out to your customer via email.
To locate your customer’s email or phone, navigate to My Sales → Subscriptions, find the relevant subscription, and retrieve the customer's email for communication.
Modifying automated emails
Customers who have subscribed to your products can receive automated emails concerning payment confirmation, failed charges, or subscription cancellations. You have the ability to customize the email templates for these automated messages — alter their appearance and content. For example, you can adjust font colors to match your brand's palette, reorganize paragraphs, include images, and more.
To customize email templates for subscriptions:
- From your store admin, navigate to Settings → Mail.
- Click on Edit next to the template you wish to modify — Subscription Canceled, Subscription Charge Failed, or Subscription Payment Confirmation is Required.
- Make your desired changes.
If you're not satisfied with the result, you can click Revert to default at the bottom of the template to restore the default version. - Once you're happy with the modifications, click Save.
For more information on editing email notifications within your store.
Cancellation of recurring subscription
A subscription can be terminated in three scenarios — manual cancellation by you, manual cancellation by a customer, or failure to process a charge (due to insufficient funds on a credit card or an expired card). If a customer fails to add a valid card to their account, the subscription will be canceled within 7 days.
To manually cancel a subscription:
- From your store admin, go to My Sales → Subscriptions.
- Select the subscription you wish to cancel and click on Actions → Cancel subscription.
Once a subscription is canceled, automatic order placement will cease, and the customer will no longer incur any charges.
Customers' experience with recurring subscriptions
Here's how recurring subscriptions work for your customers:
- Upon visiting your store, customers will encounter products offered with recurring subscriptions. The price will be displayed alongside the subscription period. For instance, $50 per week:
Note that the period is only displayed for items with subscription options. If an item offers a one-time purchase option, the subscription period will be shown on the product details page. - If a product offers two payment methods, customers can choose to make a one-time purchase or subscribe:
- Upon placing an order, a customer account will be automatically created in your store (if one hasn't already been created). Customers will receive an email containing subscription details and a link to log in to their customer account.
- Customers can log in to their account to manage their subscriptions, including updating payment details, canceling subscriptions, and checking delivery addresses. They can also view their payment history and your store's contact information: