Subscribe and save

Definition

Subscribe and save is a business model that allows customers to subscribe to products and services, which are automatically shipped on a regular basis. The customer pays a discounted price for these shipments, typically by committing to a certain number of shipments.

How subscribe and save works:

• A customer selects a product from an online retailer’s website or store and places it into their cart.
• They then choose the frequency with which they would like to receive shipments of that product (i.e., once every two months).
• The retailer sends out the shipment at the specified time, which is often accompanied by a discount for signing up for the subscription service.

Subscribing to a product or service can be beneficial to both the customer and the seller. For example, an individual may subscribe to a monthly supply of coffee beans because he or she enjoys the coffee but does not want the hassle of buying coffee each week. Similarly, a company may offer subscriptions for its products in order to keep sales consistent throughout the year.

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