Subscription commerce is booming say James Rigg, CEO of Trojan Electronics, but this good news comes with the warning that subscriptions raise the stakes for retailers. Whilst they’re a welcome steady stream of income for ecommerce businesses, one delivery that goes wrong and a customer could cancel!
From razor blades and pet food to curated wine deliveries and monthly wellness boxes, subscription commerce has rapidly become a fixture in the ecommerce world. The appeal is obvious. For consumers, it offers convenience, personalisation, and the certainty of regular deliveries. For retailers, it brings recurring revenue, enhanced customer data, and a more predictable approach to inventory management. But behind the scenes, executing this model at scale is anything but simple.
Unlike one-off purchases, subscriptions raise the stakes on consistency. A single missed delivery or stock issue doesn’t just frustrate a customer — it increases churn and drives up cost-to-serve. As customer expectations surrounding deliveries, returns and stock availability continue to rise, and supply chains remain under pressure from a range of factors, logistics performance has become the critical driver of success or failure — but it’s not just about speed or accuracy.
The unboxing experience matters too. Packaging quality, presentation, and thoughtful inserts all play a part in reinforcing brand value and customer satisfaction. Subscription customers don’t just want the right product — they want it delivered on time, beautifully packaged, and with a touch of care that makes the experience feel special. When it lands well, it builds loyalty. When it falls short, they unsubscribe.
Striking the right balance between flexibility and resilience is often the deciding factor between brands that scale profitably and those that stagnate.
Key considerations for retailers entering the subscription commerce market
Success in this model begins with infrastructure. Subscription commerce depends on dependable, repeatable fulfilment cycles. Customers expect their deliveries to arrive on time, in full, and exactly as expected, whether they’re receiving them weekly, monthly or quarterly. This places significant pressure on the back end. Orders must be picked, packed, and dispatched with precision, even as volumes shift and the complexity of each order varies.
Many subscription products involve tailored selections, temperature-sensitive items or limited-edition stock, all of which require careful handling and time-specific dispatch. Some need to be assembled in batches and shipped within a narrow window to meet customer expectations or align with seasonal campaigns. Others involve dynamic inventory, where individual product choices change each month. Without the right systems and processes, these variables become unmanageable fast.
Take baby formula as an example. For parents of infants, this is a non-negotiable product, and any missed delivery creates immediate stress. These customers aren’t looking for novelty; they need certainty. If a delivery is late or fails to arrive, they won’t wait around.
At the other end of the spectrum, parents may use subscriptions for lunch packs. Here, convenience is key, but so is variety. Fixed bundles with the same flavours each week can quickly become a problem. To get this right, retailers need an interface that allows flavour swaps or item preferences, without interrupting the subscription or adding complexity to fulfilment and stock forecasting. The customer experience must feel flexible, even if the backend is highly structured.
Stock management is another challenge that many businesses underestimate. While recurring orders can improve demand forecasting, personalised products, changing SKUs and expiry dates make inventory harder to manage. It requires agile inventory control and close coordination across teams.
To meet this demand, retailers must employ advanced warehouse management systems that track stock in real time, manage batch control and expiry dates, and automate replenishment, or partner with third-party logistics providers who can deliver this level of control. With the right tech in place, businesses gain full visibility and control, reduce waste, and can scale their subscription model with confidence.
Finally, businesses should make the most of one of subscription commerce’s greatest advantages: access to extensive customer data. The subscription model creates regular touchpoints and a wealth of behavioural data normally inaccessible to retailers. When used well, it can directly inform retention strategies, stock planning and even new product development. A fulfilment partner that can support this kind of joined-up thinking is worth far more than one focused solely on the physical movement of goods.
This is particularly relevant for brands looking to reduce their dependence on large marketplaces. While well-known online marketplaces offer scale, they often limit access to customer data and weaken brand ownership. For retailers building direct-to-consumer (D2C) channels, the right logistics partner can help create a more loyal customer base, with enhanced margin control and a stronger overall proposition. Trojan supports brands with the tech, logistics, and customer operations needed to grow their subscription services. From managing D2C storefronts to automating fulfilment, we provide the systems and infrastructure to streamline the entire process from click to doorstep.
Subscription commerce is here to stay. But as the model matures, success will depend less on brand story and more on whether the operational infrastructure can consistently deliver at scale. Those who invest in getting this right will be positioned to grow sustainably and stand out in an increasingly saturated market.
