Global Subscription E-Commerce Platform Market Size

Subscription E-Commerce Platform Market Analysis

The global subscription e-commerce platform market is expected to increase from $72.91 billion in 2021 to $320.04 billion in 2027 at a compound annual growth rate (CAGR) of 62.21%. The change in the subscription e-commerce market growth trend is mainly due to companies' stabilizing their output after catering to the demand that grew exponentially during the pandemic.

• The rapid growth of online shopping will contribute to the development 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 and 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 $12.3 billion in sales during the festive season in 2021, an increase from $4 billion during the 2020 festival season sales. The increasing growth of online shopping will boost the demand for subscription e-commerce platforms.
• Strategic partnerships and collaborations are key trends 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 a subsidiary of FedEx with Adobe Commerce.
• Companies that offer subscription services often analyze and store vast amounts of customer data. Everything from personally identifiable information (PII) to behavioral data to psychographics can be tracked and applied to provide a smoother, more personalized shopping experience; however, great reward comes great risk. Companies are responsible for protecting data from security leaks and cyber-attacks, complying with multiple data protection laws depending on the operational region.
• The global subscription e-commerce market has witnessed continuous growth, owing to the COVID-19 pandemic in the past few years, due to several new merchants joining the platform. Other enhancing factors, such as the growing use of subscriptions among millennials, the rising popularity of online streaming services, increasing internet penetration, low cost of subscription boxes, etc., have impacted the market positively.