Oatside uses ecommerce subscriptions for selling products that people use at a regular cadence using a “subscribe-and-save” tactic to entice their customers to make repeat purchases as it’s also convenient for the customers. Seeing that oat milk is regularly consumed in some people's daily routine, Oatside created subscription plans for their customers.
The concept is simple: For example customers can get oat milk on the Barista Blend Subscription at a lower price ($4.98 per litre) than if they were to buy that product as a one-time purchase ($6 per litre). This way, customers can decide the frequency to continue receiving oat milk they need at a lower price, without worrying about having to replenish / repurchase it every week. In addition, Oatside offers free shipping for all subscription orders which is a great way to help increase average order value (AOV) as customers would be more encouraged to purchase the subscription to unlock free shipping.
Lastly, a subscription also allows businesses to have continuous long-term contact with their customer base. This makes it easier to upsell since the customer already has a prior relationship with your business and will be more receptive to any added value that can be provided. Hence, this boosts engagement leading to a higher customer lifetime value (LTV).