Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Marketing and Sales subscription economy

Food subscription services like Blue Apron can bring groceries to the consumer on a regular schedule. (Photo by Derek Davis/Portland Portland Press Herald via Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Mar 27, 2023

Paying By the Month Is a New Trend

Subscriptions are a growing part of the global economy, affecting everything from newspapers to razors to the heated seats in a vehicle. 

Key Details

  • By 2026, the global subscription e-commerce market is expected to reach $905 billion. In 2021 it was around $72.91 billion, Forbes reports. 
  • While consumers have long been used to paying subscriptions for magazines and newspapers, retail brands are now expanding—trying to use the subscription model to bring in extra revenue.
  • Subscription services work well for recurring purchases. Customers who partake in these services do not even have to remember to add items to their grocery lists. They just appear on their doorstep. 
  • After Amazon successfully introduced its subscription boxes, other businesses like BarkBox, Birchbox, and FabFitFun launched their subscription services, unleashing a flood of retailers from every sector trying to get in on the subscription model. 

Why it’s news

Subscribing to a company like Dollar Shave Club can bring razors straight to a customer’s door every month. A Chewy Goody Box sends new toys to the consumer’s pet right on schedule. Food can even appear on the customer’s doorstep monthly with a Good Ranchers subscription. 

Subscriptions offer convenience, taking the thinking and planning part out of running errands to the local grocery store. But these services can often cost the customer more than he may think. If a subscription is poorly timed, the customer may end up with an excess of goods that may go to waste. 

Canceling a subscription service can sometimes be harder than the shopper may think. Remembering to cancel before the product arrives can be a hassle. And some retailers might make canceling a little more difficult than the customer would expect. 

One of the benefits of subscriptions is that a customer always knows what will be spent that month, but now that nearly every good or service comes with a subscription, some customers are getting worn out. 

Amazon, streaming services, groceries, pharmaceuticals, and now verified accounts on social media all have subscription services. It can be challenging to track what the consumer is spending and where. 

Subscriptions can also cost consumers more money than they may realize. When a shopper is not spending the money immediately, he can forget that in addition to the new subscription he just signed up for, he has four more due that month. A 2022 survey found that the average monthly spending on subscriptions was $219, more than two and half times what the survey respondents estimated they were paying, USA Today reported.

Despite the cost, subscriptions can be helpful and convenient, but adding subscription services to items customers used to own outright is a newer concept. Last year, automaker BMW announced an $18 monthly subscription for its heated seat. Toyota announced in 2021 that it would charge a monthly subscription for its remote start key fobs, The Verge reported. 

A 2022 Cox Automotive survey found that of the 217 respondents who plan to buy a car in the next two years, only 25% said they would be willing to pay a subscription fee to access certain vehicle features. 

Despite this hesitancy, General Motors says in 2021 that it brought in around $2 billion in vehicle subscription services revenue. The company expects that number to expand to nearly $25 billion by 2030, The Verge reports. 

“Our research indicates that with the right mix of compelling offerings, customers are willing to spend $135 per month on average for products and services,” says GM head of innovation and growth Alan Wexler.

Companies have to strike a delicate balance when adding subscription services. If done right, a business can bring in a consistent flow of revenue in industries that may have otherwise been inconsistent while adding convenience and value to a customer. If done incorrectly, the company can drive away a buyer.

Home / News / Paying By the Month Is a New Trend
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com