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Subscription E-commerce Global Market Report 2022

Subscription E-commerce Global Market Report 2022

  • June 2022
  • 175 pages
  • ID: 6284123
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the subscription e-commerce market are Amazon.Com, Unilever (Dollar Shave Club), Blue Apron Holdings, Netflix, Ipsy, Personalized Beauty Discovery (Ipsy), PetSmart, Hello Fresh, Flintobox, Nature Delivered, The Walt Disney Company, Edgewell Personal Care (Harry’s), Birch Box, Sephora Play, Barkbox, Magento, WIX, Subbly, Sellfy, Recurly, Justfab, Porsche, and WooCommerce.

The global subscription e-commerce market is expected to increase from $72.91 billion in 2021 to $120.04 billion in 2022 at a compound annual growth rate (CAGR) of 64.64%. The change in growth trend is mainly due to companies’ stabilising their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $904.28 billion in 2026 at a CAGR of 65.67%.

The subscription e-commerce market consists of sales of subscription e-commerce services by entities (organizations, sole traders, and partnerships) that allow customers to subscribe to their websites or apps for recurring delivery of products or services.Subscription services in the e-commerce industry have grown significantly in recent years as consumer demand for online spending has increased.

Subscription services can benefit businesses with regular cash flow, increased customer retention, and improved business growth decisions.

The main types of subscription in the subscription e-commerce market are service subscriptions, subscription boxes, digital content subscriptions, and others.Service Subscription e-commerce is a service-based subscription model that is most commonly used by customers where the user can subscribe and pay only for the services that they need regularly.

The subscription e-commerce is paid through online and offline modes and is used by women, men, and kids. Beauty and personal care, food and beverage, clothing and fashion, entertainment, health and fitness, and other industries use subscription e-commerce.

North America was the largest region in the subscription e-commerce market in 2021.Asia-Pacific was the fastest growing region in the market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The rapid growth of online shopping will contribute to the growth of the subscription e-commerce market going forward.The benefits of online shopping over retail purchases are shifting consumer preferences towards online shopping, especially those who opt for a subscription with additional benefits.

Customers prefer to shop online because it increases convenience, reduces reliance on store visits, lowers travel costs, expands market space, lowers overheads, lowers costs, provides detailed information about products and services, and enables price comparisons, availability in a wide range of products, customer satisfaction, and the absence of crowds.For instance, in 2021, the US Census Bureau of the Department of Commerce estimated $222.5 billion in US retail e-commerce sales during the second quarter, a 3.3% increase from the previous quarter. In India the Brand Equity Foundation (IBEF) recorded $8.3 billion of sales during the festive season in 2020, an increase from $5 billion during the 2019 festive season sales. The increasing growth of online shopping will boost the demand for subscription e-commerce.

Strategic partnerships and collaborations are a key trend followed by the companies operating in the subscription e-commerce market.A large number of e-commerce platforms operate in the e-commerce subscription market.

Collaboration enables them to extend their market share and gain a competitive edge in the market.For instance, in April 2021, Adobe and FedEx collaborated to drive innovation in e-commerce with the integration of ShopRunner, an e-commerce platform and subsidiary of FedEx, with Adobe Commerce.

In October 2020, Titktok announced a global partnership with Shopify. The partnership will help Titktok move into e-commerce by including other in-app shopping features and enable Shopify to reach the younger TikTok audience to drive sales.

In July 2021, YouTube, a social media platform, acquired Simsim for an undisclosed amount.The acquisition of Simsim is to encourage people to buy goods from local small businesses and help those businesses grow.

People can make video reviews of various small business products and post them on the platform, allowing people to make decisions and purchase products directly from the Simsim app.

The countries covered in the Subscription E-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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