Tap into Recurring Orders for Lucrative eCommerce Business
A typical eCommerce transaction usually consists of a situation wherein product is is delivered to the customer once per instance of an order. However, in certain situations, the order is placed once, and the customer receives the products on a recurring basis. Such orders are known as recurring orders, wherein the customer continues to receive them until the order is canceled. For example, a customer could order a basket of cosmetics, soap or other such consumables on a recurring basis every month until s/he takes the onus of canceling the order.
Such orders carry the capability of generating a ready as well as steady stream of revenue from an already existing customer. Such recurring ordering methods are called by different names by various retailers. For example, Amazon.com uses the terminology “Subscribe and Save” for recurring orders. Hence, this process makes recurring orders a relatively lucrative option the vendor while simplifying the ordering process for the customer.
On the flip side however, this method can greatly complicate order processing. Nevertheless, in order to process such orders efficiently and effectively, it is recommended to follow the steps described below:
- Manage card expiration dates effectively.
- Handle your stored credit card token efficiently.
- So that the next payment can occur automatically, do not discard your credit card tokens.
- You could face issues such as delays in payments and account cancellation.
- You need to be extra careful in handling automatic order creation as well as order fulfillment on a recurring basis.
In case you run a Magento Platform, you need to be careful as the system presents a specific set of requirements. This is done so that the number of different “use and edge cases” for the Magento system are minimized. Hence certain options such as mixing of regular and recurring products in the same shopping cart or Discounts as well as gift cards or store credits cannot be performed on Magento.
It should be understood that recurring orders can present a complex scenario for your Magento eCommerce store. However, you need to weigh the benefits in the form of revenues and customer convenience.
At the same time, it would do your revenues immense good if you identify the various opportunities for fully realizing the potential for recurring orders that your eCommerce business holds. Hence, identify the solution that you can provide in such cases and go ahead to evaluate the recurring needs of your customers while trying to solve such needs.