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US Subscription Ecommerce 2023

What Will Succeed in the Era of Subscription Fatigue?

Report by Blake Droesch  |  May 23, 2023
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Report
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Table of Contents
Report Snapshot
Subscription ecommerce is poised for its slowest growth year on record.
Adoption has slowed while consumers have opted for fewer subscriptions.
Amazon is the most popular destination for subscriptions, driving a strong portion of sales growth.
Popular subscriptions for common household goods win when focused on value and convenience.
Retention rates and LTV are both important when weighing the value of subscriptions.
How should brands and retailers approach subscription ecommerce?
Sources
Media Gallery
About This Report
To survive the era of subscription fatigue, brands and retailers need to invest in models that bring customers value and convenience.
Topics
Retail Ecommerce Sales
Ecommerce Sales
US
Table of Contents
Report Snapshot
Subscription ecommerce is poised for its slowest growth year on record.
Adoption has slowed while consumers have opted for fewer subscriptions.
Amazon is the most popular destination for subscriptions, driving a strong portion of sales growth.
Popular subscriptions for common household goods win when focused on value and convenience.
Retention rates and LTV are both important when weighing the value of subscriptions.
How should brands and retailers approach subscription ecommerce?
Sources
Media Gallery

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?

Retention Rates and Lifetime Value Among Subscription Ecommerce Categories Worldwide, 2022
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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

1file

Exportable files for easy reading, analysis and sharing.

5charts

Reliable data in simple displays for presentations and quick decision making.

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

Charts in This Report

Retention Rates and Lifetime Value Among Subscription Ecommerce Categories Worldwide, 2022US Subscription Ecommerce Sales, 2022-2027 (billions, % change, and % of retail ecommerce sales)
US Digital Subscription Buyers, 2022-2027 (millions, % change, and % of digital buyers )US Amazon Subscribe & Save Household Penetration, by Consumer Packaged Goods (CPG) Category, 2020-2022* (% of total category purchases)
Product Categories US Subscription Buyers Subscribe to, Sep 2022 (% of respondents )

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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