Creating subscription and leasing products

TWICE Commerce supports rentals with recurring billing either without a predefined expiry date (subscription contract) or with a predefined expiry date (leasing contract). This allows you to generate a predictable revenue stream.

To offer subscription or leasing products, you need to set up online payments in your TWICE store.

NOTE: Recurring rentals are a beta-feature meaning the functionality is limited.

Creating Subscription and Leasing Products

1. In your TWICE Admin, navigate to the Products section.
2. Click New product and select the Subscription price in the Pricing section.
3. Fill in the product details, including name, description, and images.
4. Set up and configure the subscription pricing and terms after you have created the product. Find everything under the Pricing tab on the Product page

Contract Terms

• Commitment period: The minimum length of time the customer is committed to the subscription.
• Payment cycle: How often the customer will be charged (e.g., monthly, quarterly, annually).
• Auto-renewal: Whether the contract will automatically renew (subscription) or expire (leasing) at the end of the commitment period.

Example Configurations

• Monthly subscription with no commitment period: Ideal for services or consumables where customers can cancel at any time.
• Monthly subscription with a 12-month commitment period: Suitable for products or services where profitability requires a longer-term commitment.

By carefully configuring the subscription terms, you can create a variety of subscription offerings to meet the needs of your customers and your business.

Benefits of Subscription Business Model

• Recurring revenue: Generate predictable and consistent revenue streams. Markets value subscription revenue with higher multipliers than traditional retail revenue.
• Increased customer lifetime value: Build long-term relationships with customers and increase their lifetime value.
• Improved inventory management: Forecast demand more accurately and optimize inventory levels.
• Reduced customer acquisition costs: Retain existing customers and reduce the need to constantly acquire new ones.
• Accessibility: Lower the barrier to entry in expensive product categories. For example, instead of purchasing a high-priced camera lens, a customer can subscribe to a service that allows them to access a variety of lenses, ensuring they have the right tool for every photographic need without the burden of a large upfront investment.
• Durability and Reusability: Design for longevity and repairability, and maximize the lifespan of products, reducing waste and environmental impact. This focus on quality and durability benefits both the seller and the customer.
• Sustainability: Reuse products and components multiple times before recycling or disposal. It is, of course, good news for the planet but reusing products and parts can also help companies to save significant amounts of money.

Popular Product Subscription Categories

Here are some examples where offering durable goods through a subscription model, essentially long-term rentals with split payments, makes a lot of sense:

• Electronics: High-end cameras, laptops and computers, gaming consoles, home appliances.
• Outdoor Gear: Camping equipment, skis, snowboards, kayaks, bikes.
• Tools & Equipment: Power tools, construction equipment, gardening tools.
• Furniture & Appliances: Designer furniture, home appliances, office equipment.
• Vehicles: Cars, motorcycles, scooters, boats.

These are just a few examples, and the possibilities are endless. TWICE empowers merchants to servitize almost any durable good, opening up new revenue streams and providing customers with flexible ownership options.

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