1. Introduction: Ecommerce in the subscription economy

As the global ecommerce market nears $4.8 trillion in 2025, subscription models have become essential for success. Revenue and growth turn on effective approaches in this regard, and the modern ecommerce brand is built on justifying recurring business from every customer.

Did you know?

The global ecommerce market is projected to near $4.8 trillion by 2025.

Even as the subscription economy has grown more than four times its original size over the past decade, ecommerce subscriptions face unique hurdles. Physical product subscriptions must navigate logistics complexities, inventory management, and mercurial fulfillment costs, while still meeting rising consumer expectations for tailored services and value-driven experiences.

The data tells a compelling story, and Recurly’s recent 2025 State of Subscriptions report spotlights crucial parts of that tale. For example, subscriber counts rose 15.4% year-over-year across industries. Yet, consumer goods and retail saw a 4.0% decline in the same period. This divergence foregrounds the pressures facing ecommerce subscription merchants. It also underscores the urgent need for strategic adaptation.

Year-over-year subscriber growth in 2024 — 2025 State of Subscriptions, Recurly

For product subscriptions, this critical window demands flawless delivery. It requires proactive communication and the ability to demonstrate near-term value. As people increasingly view subscriptions as gateways to discovery and connection with brands — far more compelling than mere conveniences — ecommerce merchants must likewise evolve beyond delivering products on repeat to creating personalized experiences that foster lasting relationships throughout the given purchase cycle.

In this playbook, we’ll explore how ecommerce subscription businesses can thrive in 2025 by leveraging retention-first strategies. We’ll look at innovative pricing and emerging tech, all geared toward meeting evolving customer expectations and driving sustainable growth.

sales@recurly.com

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