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E-Commerce Subscription buzz word "Subcom"

In an article on Wired.com, James Gagliardi, predicts that "subcoms" will grow in 2014; consumers will trust and soon expect companies to deliver selected shipments of physical goods like food, clothing, or accessories. In 2014 "subcoms" will be what bridges the on-screen and in-store shopping experiences for a growing number of consumers.

An "Subcom" subscription focus on recurring profit and annual reoccurring revenue for the online business and therefore delivering the following value added shopping experiences:

Instant Gratification:
"We want to try it and see if we like it." Right now you can pick five frames from a website and those glasses sent to your houses. You will have a week to narrow choices down. Or men could instead of guessing which razor might shave the best could have them delivered at your doorstep.

Deeper Customer Relationships:
A bustling online liquor store changed their storefront business to a service, it uses its online subscription service ($75 a month subscription to Spirits or a $95 a month subscription to Cocktails) to cultivate a presence in homes across the country. Monthly shipments of expertly chosen liquors, spirits, and cocktail recipes help discerning mixologists “build a better bar.” “All full-sized bottles, no mini-bars here,” promises Bitters + Bottles on their website. Small companies like this can now establish loyalty with customers from thousands of miles away. This is where niches thrive.

Taking Advantage of the Digital Space:
Adobe recently discontinued its out-of-the-box Photoshop product (the physical product) in favor of a subcom. Adobe Creative Cloud offers membership subscriptions that allow customers to try out new apps, connect to new software, and fiddle with new features. This eliminates the need to hold new updates (anywhere from 12-24 months) until there’s a bundle big enough to justify creating a new product to ship to enough customers.

What does subcom mean for e-commerce? Be it eye frames, cocktails, jewels, or software, in 2014 the businesses that ship a sampling of their product to a mailing address, will be the businesses on the forefront of securing customer loyalty.

Take notes from these companies, which owe a chunk of their profits to the success of their subcoms.
Stitch Fix - “Let’s get started on your Style Profile. We’re so excited to get to know you :)” This women’s clothing company will send a custom-picked box of clothes and accessories for a flat fee of $20 based on personal style and
spending preference. Bonus: That $20 goes toward any items the client chooses to keep (aka purchase).
Beer 52 - “Craft beer is best enjoyed with friends, right? So let’s get to it! Remember there’s NO commitment - you can cancel anytime.” This craft beer company delivers Box of Brew (8 bottles of handcrafted beers from microbreweries around the world) for £24 a month. Bonus: Beer 52 is based out the UK, but they’ll ship anywhere.
BarkBox - “Our Goal? To make dogs happy.” This dog-friendly subcom is a monthly present for your pup filled with natural treats, big ol’ bones, ecofriendly toys, and the latest in canine hygiene and innovative owner gadgets. Four or more products start as low as $19 and curated by breed, age and preference. Bonus: 10 percent of proceeds go to a good cause.

Contact webs.co.za to set up a subscription e-commerce service that introduces customers to an alternative way of shopping.
Use this opportunity to create a new niche online website, we have the skills to work with new business idea's.

Source: "6 MAJOR E-COMMERCE TRENDS FOR 2014" © 2014 2Checkout.com, Inc.

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