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US Subscription Ecommerce 2023

What Will Succeed in the Era of Subscription Fatigue?

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About This Report
To survive the era of subscription fatigue, brands and retailers need to invest in models that bring customers value and convenience.
Table of Contents

Report Snapshot

In the current era of economic uncertainty, successful subscription models will focus on value and convenience for replenishable household goods. But to earn subscription revenues, brands and retailers will have to go against Amazon and its growing Subscribe & Save business.

Key Question: What are the components of a successful subscription strategy during periods of economic uncertainty and subscription fatigue?

KEY STAT: Home goods subscriptions had the strongest retention rate (51%) in 2022, while food and beverage subscriptions had the highest lifetime value ($356).

Here’s what’s in the full report

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Table of Contents

  1. Report Snapshot
  2. Subscription ecommerce is poised for its slowest growth year on record.
  3. Adoption has slowed while consumers have opted for fewer subscriptions.
  1. Amazon is the most popular destination for subscriptions, driving a strong portion of sales growth.
  2. Popular subscriptions for common household goods win when focused on value and convenience.
  3. Retention rates and LTV are both important when weighing the value of subscriptions.
  1. How should brands and retailers approach subscription ecommerce?
  2. Sources
  3. Media Gallery

authors

Blake Droesch

Contributors

Whitney Birdsall
Senior Forecasting Analyst
Sky Canaves
Senior Analyst, Retail & Ecommerce
Andrew Lipsman
Principal Analyst, Retail & Ecommerce
Amy Rotondo
Director, US Research
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