With the subscription-based model dominating e-commerce, the question quickly becomes, should health and wellness providers jump on this exploding trend? When you review the annual revenue potential of subscription-based models, it becomes an enticing option — even for small businesses. In fact, economists estimate that the subscription e-commerce market has grown by leaps and bounds, to the tune of 100% percent a year over the past five years, with some of the world’s largest retailers generating in excess of $2.6 billion dollars a year.1

So, what can health and wellness retailers learn from the booming subscription model?


Business woman on laptop, about to subscribe to a service.


Here are the top three reasons a subscription business model can be beneficial for health and wellness retailers.


Health consumers like low-cost options.

Similar to how Netflix has been able to dominate the on-demand, video streaming market, positioning your health product or services as pay-as-you-go or flat monthly fee can be a great way to attract cost-conscious consumers. With this model, companies like Netflix and Hulu have been able to bring in $15 billion2 and $1 billion3 on subscription revenues, respectively. The flexibility of being able to cancel service and not be tied to paying health premiums for an entire year, make subscription-based healthcare models likely to succeed.


Health consumers like to customize their plans.

As their life situations and wellness concerns or goals change, consumers prefer to have healthcare options that can be changed to better fit their current needs. By having a subscription-based approach, you give your customers the ability to upgrade to more extensive packages or downgrade to packages that address their most important or immediate preferences. Health and wellness brands have already made incredible profits from providing customized care. Take for example Ritual, a vitamin subscription service that customizes vitamins based on the individuals health needs. By customizing and delivering a health service, they were able to quickly receive over 15 million dollars in funding.4 This indicates that consumers want to tailor their experiences and are willing to invest in businesses that offer this ability.


Health consumers like to have access to the latest product and service offerings.

By not being locked into a specific product or service for more than a few months at a time, consumers have the option to seek out new products. As a healthcare and wellness retailer, this can work in your advantage and help you refine your products and services depending on the current market demand. This way you can address your markets immediate needs and evolve your offerings as their preferences evolve. Subscription-based companies are often able to adapt much faster than those that require lengthy commitments.5

If you’re currently looking for ways to attract and engage prospective health consumers or expand your current product offerings, taking a subscription model approach may work in your advantage. By packaging some of your most popular services, you can offer tiered pricing and be able to capture a larger audience without significant investment in new product launches.



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