With subscription ecommerce expected to be worth $904 billion by 2026, it’s clear that a subscription model has a wealth of benefits for online business owners and their customers. Many brands have incorporated automated subscriptions and are reaping the benefits of increased customer retention, more upsell opportunities, increased recurring revenue and improved business stability, while customers enjoy discounts and the convenience of receiving their products on a regular basis.
Is It Time to Review Your Subscription Strategy?
For brands on the Shopify platform with subscription integrations, Shopify has recently announced upcoming changes that could impact their stores. Some important changes may be required by merchants, depending on how their subscriptions are currently set up.
What Has Shopify Announced Regarding Subscription Integrations?
Shopify’s announcement was to update merchants about a significant change that will impact any stores with subscription apps that aren't integrated directly to Shopify Checkout.
If this is the case, and the business does not make the necessary changes, they will no longer be able to accept or process orders after October 18, 2024.
What Does This Mean For Shopify Brands With Subscription Integrations?
Brands currently using legacy checkouts will need to migrate over in advance of October 2024.
This article from Shopify outlines the process of migrating a legacy subscriptions app to one that is integrated to Shopify Checkout that merchants can access directly in the Shopify admin.
While this sounds like a pain, it is a good opportunity to remedy some common pain points that exist with some of the older platforms, like catalogue and discount duplications.
The other main benefit of migrating is that Shopify Checkout is a more seamless process for your customers. Some of the legacy platforms incorporate a separate checkout, which not only makes the process longer but can make shoppers think twice about completing their purchases as it can make them suspicious of potential security issues.
Shopify Subscription Options and Approaches
Shopify store owners have two options: either migrate to the native checkout, staying with their current provider, or migrate to a new subscription solution.
It could be a good time to review your existing set up and take the opportunity to improve it for your customers and your business.
We work with a number of partner organisations who can make sure your Shopify subscriptions are best in class and future-proofed for the deadline of next October.
Recharge is fully compatible with the Shopify ecosystem (current users of V1 will need to migrate to the native checkout) and is one of the most popular subscription portals on the platform. Recharge supports Stripe, Authorize.net, Braintree by Paypal, and Shopify Payments. It also integrates with technologies that stores may already have implemented, like Klaviyo, Gorgias, and LoyaltyLion.
Yotpo is a market-leading marketing platform with several modules available including reviews, loyalty and SMS marketing, and has recently added subscriptions to its portfolio of services, with supported migration if brands are looking to change providers.
Bold Commerce also has a subscription offering - if you’re currently on v1, you’ll need to migrate to the native checkout to continue with this option.
There’s still time to consider the best next steps for your business so have a look at your own setup and review what makes sense for you. If you need any advice or support, get in touch with us - we’re the Shopify experts and have built dozens of stores with subscription integrations so can advise on all aspects to help you make the right choice.