Subscription commerce
A business model in which a product or service is sold at regular intervals with automatically renewing payments.
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Why it matters
Subscriptions provide predictable, recurring revenue and increase customer lifetime value. Success depends on keeping the cancellation rate low: continuing to deliver value, handling failed payments and making cancellation easy. Legally, renewal terms and the way to cancel must be stated clearly.
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Example
A coffee brand launches a monthly subscription. Once subscribers whose card is declined receive an automatic reminder and a card update link, subscribers lost to failed payments drop sharply.
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Common mistake
Making cancellation hard. A hidden cancel option may keep subscribers in the short term, but it turns into complaints, negative reviews and legal risk.
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Related terms
Related services and guides
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