---
title: "How to set up an ecommerce subscription model"
author: "Performetic Ekibi"
url: "https://www.performetic.com/en/blog/how-to-set-up-ecommerce-subscription-model"
published: "2026-03-06T08:00:00.000Z"
updated: "2026-10-05T02:41:58.089Z"
---

# How to set up an ecommerce subscription model

> An ecommerce subscription model works by offering recurring delivery or a prepaid plan for a product customers use up on a predictable schedule. Set the subscription discount from your contribution margin and expected churn, offer skip and pause options, and make cancelling as easy as signing up. In Turkey, cancellation requests must be fulfilled within seven days.

## How do you set up an ecommerce subscription model?

You set up an ecommerce subscription model by shipping a product customers use regularly on a set schedule and charging them on a recurring basis. The five core steps are choosing the right product, setting the subscription discount from your margin, preparing recurring payments, making skip and cancel flows easy, and meeting your legal obligations in each market.

Subscriptions turn a repeat purchase from a decision the customer makes every time into an automatic habit. That makes them attractive for predictable revenue and inventory planning. But a subscription built on the wrong product or with a frustrating cancellation process leads to fast churn and complaints.

## Which products are suitable for subscriptions?

Subscriptions work in categories where customers use the product at a steady, predictable pace. Typical examples: coffee, supplements, pet food, personal care and beauty consumables, filters and replacement parts, baby products. For one-off or once-a-year purchases, a loyalty or referral program is usually a better fit.

Ask these questions:

- Does the product run out within a set period, and does that period vary a lot between customers?
- Do customers want the same product every time, or are they looking for variety?
- Is shipping cheap enough to make regular deliveries profitable?

## Which subscription type should you choose?

Shopify's developer documentation describes two core payment structures: pay-per-delivery subscriptions, also known as "subscribe and save", where a new order is created and paid at each interval, and prepaid subscriptions, where the customer pays upfront and receives products on a regular cadence. Adding content-based models, the options look like this:

| Subscription type | How it works | Best fit |
|---|---|---|
| Pay per delivery | Card is charged automatically for each shipment | Consumables, flexible customer needs |
| Prepaid | For example, 3 or 6 months paid upfront | Gift subscriptions, cash flow priority |
| Curated box | A different selection of products each month | Discovery categories (snacks, books, beauty) |
| Membership | A fee for benefits such as free shipping or member pricing | A base of frequent buyers |

For most ecommerce brands, the lowest-risk starting point is adding a pay-per-delivery option to an existing best-selling consumable.

## How do you price a subscription and its discount?

The subscription discount should give customers a clear advantage over one-off purchases without eating your contribution margin. Base the math on average subscriber lifetime.

Example calculation:

1. Monthly subscription price is $40; after the subscription discount, contribution margin is 30%, so monthly contribution is $12.
2. If monthly churn is 10%, average subscriber lifetime is roughly 1 / 0.10 = 10 months.
3. Lifetime contribution per subscriber is about 10 x $12 = $120.
4. The most you can pay to acquire a subscriber must stay below that figure.
5. If churn falls to 5%, lifetime rises to about 20 months and contribution to $240. That is why reducing churn is usually worth more than raising the discount.

You can find the unit economics in detail in our [profit margin guide](/en/blog/ecommerce-profit-margin-unit-economics). Include shipping, payment fees and failed payment costs in monthly contribution.

## How do you set up the subscription infrastructure?

Subscriptions require storing the card securely and charging it in later periods without the customer checking out again, so confirm that your payment provider supports recurring payments and stored cards. On Shopify, subscriptions are handled by apps built on the selling plan and subscription contract APIs; other platforms offer similar apps or integrations.

During setup, make sure these flows work:

- Product pages that clearly show one-time and subscription options with the discount and delivery frequency.
- A customer account area where subscribers can see the next shipment date, skip, change frequency, pause and cancel.
- A reminder email a few days before each shipment.
- Automatic retries for failed payments and a card update link for the customer.

## What legal rules apply to subscriptions?

Rules vary by market, so check consumer law wherever you sell. In Turkey, subscription contracts are governed by the Subscription Contracts Regulation, based on Consumer Protection Law No. 6502. It covers any contract that lets a consumer obtain goods or services continuously or at regular intervals; for subscriptions outside electricity, water, gas and telecoms, only certain articles apply. According to the text published in the Official Gazette:

- Fixed-term subscriptions cannot include clauses that renew the contract automatically; extension requires the consumer's request or approval.
- Consumers can terminate indefinite subscriptions, or fixed-term ones of one year or longer, at any time without giving a reason and without a penalty.
- Sellers cannot set a cancellation method that is more burdensome than the method used to sign up or that makes cancelling harder.
- Cancellation requests must be fulfilled within seven days of reaching the seller, and the consumer must be notified in writing or on a durable medium.

Subscriptions are also distance contracts, so Turkey's Distance Contracts Regulation applies too: consumers have 14 days to withdraw without a reason, and for contracts with regular deliveries over a set period, that window starts on the day the first item is received. The practical takeaway: if customers can subscribe online, they should be able to cancel online from their account. Review your terms with legal counsel.

## How do you reduce subscriber churn?

Nielsen Norman Group notes that practices which keep customers in a service they did not clearly agree to, such as hiding that a free trial rolls into a paid plan, may raise short-term revenue but weaken loyalty and long-term growth. Sustainable ways to reduce churn:

- **Flexibility:** offer skip, pause or frequency changes instead of only cancel. Many cancellations are really "I have too much product" problems.
- **Right starting frequency:** suggest a frequency based on how long the product lasts.
- **Payment recovery:** reduce involuntary churn from expired cards with automatic retries and reminders.
- **Value reminders:** show subscribers how much they have saved.
- **Exit survey:** ask why they are leaving, but never make cancellation depend on answering.

## Which metrics should you track?

- Active subscribers and monthly recurring revenue.
- Monthly churn rate (voluntary and payment-related, separately).
- Average shipments and lifetime contribution per subscriber.
- Skip and pause rate.
- Conversion rate from one-time buyers to subscribers.

If you want to plan your subscription model together with your acquisition and ad strategy, you can request a free growth analysis through our [contact page](/en/contact).

## Key takeaways

- Subscriptions work for products used at a regular, predictable pace.
- The lowest-risk start is adding pay per delivery to a best-selling consumable.
- Set the discount from subscriber lifetime and contribution margin; lowering churn usually beats raising the discount.
- In Turkey, cancelling cannot be harder than signing up and must be completed within seven days.
- Skip, pause and payment recovery flows are the main tools for reducing churn.

## FAQ

### How big should a subscription discount be?

There is no universal rate. The discount should offer a clear advantage over one-off purchases without consuming your contribution margin. Estimate subscriber lifetime from churn, calculate lifetime contribution and see how much the discount reduces it. Try reducing churn before increasing the discount.

### How does the right of withdrawal work for subscriptions in Turkey?

Under Turkey's Distance Contracts Regulation, consumers can withdraw within 14 days without giving a reason. For contracts with regular deliveries over a set period, the 14 days start on the day the first item is received. Withdrawal is separate from the right to terminate the subscription later.

### Can I require subscribers to cancel by phone?

In Turkey, the Subscription Contracts Regulation says the cancellation method cannot be more burdensome than the method used to sign up. If customers can subscribe online, they should be able to cancel online, and the request must be fulfilled within seven days. Many other markets have similar rules, so check locally.

### Is prepaid or pay-per-delivery better?

Pay per delivery tends to increase signups because the upfront commitment is lower. Prepaid improves cash flow and suits gift subscriptions. Many brands offer both and add an extra benefit to the prepaid option.

## Sources

- [About subscriptions (Shopify Developers)](https://shopify.dev/docs/apps/build/purchase-options/subscriptions)
- [Choose Customer Loyalty over Short-Term Profit (Nielsen Norman Group)](https://www.nngroup.com/articles/customer-loyalty-vs-short-term-profit/)
- [Subscription Contracts Regulation (Official Gazette of Turkey, in Turkish)](https://www.resmigazete.gov.tr/eskiler/2015/01/20150124-2.htm)
- [Distance Contracts Regulation (Official Gazette of Turkey, in Turkish)](https://www.resmigazete.gov.tr/eskiler/2014/11/20141127-6.htm)