Prepaid subscriptions V2
Prepaid subscriptions enable customers to pay upfront for multiple orders and receive their products on scheduled dates according to the delivery frequency set in the subscription plan.
Benefits of offering prepaid subscriptions
Key features and improvements
Setting up prepaid subscriptions
Current limitations
Help section
Enhance subscription retention by offering attractive incentives for customers to pay upfront for multiple orders. For example, while a monthly subscription might cost $10, a 3-month prepaid subscription could be offered at a discounted rate of $25, and a 6-month prepaid subscription at just $50. This approach encourages long-term commitment and provides greater value to your customers.
Customers can also gift subscriptions to their friends and family. These gift subscriptions are paid in full upfront and can be set to expire automatically after a specified number of orders.
Prepaid subscriptions boost conversion rates and increase customer lifetime value (LTV) by encouraging longer commitments from your customers.
Loop manages prepaid subscriptions intelligently. When a prepaid subscription is created, a new order is generated for each delivery. This differs from the previous approach where multiple fulfillments were tied to a single order in Shopify.
Creating multiple fulfillments against a single order caused numerous issues with shipping applications, as they typically allow a unique order to be shipped only once. Thanks to Loop's intelligent order management, this problem is effectively resolved.
Customers have complete flexibility to manage their subscription schedules, allowing them to pause, resume, or skip orders as needed.
Imagine offering a health juice subscription with daily or every-two-day deliveries. Instead of billing the customer daily, you can provide a convenient monthly subscription that covers all deliveries during the month.
Go to the Selling Plans tab and click on the “Create Selling Plan” button
When creating the selling plan, ensure that “Is this a prepaid selling plan?” is checked.
In the frequency selector section, modify the "charge every" setting to your liking. This setting determines how many orders are charged together to the customers.
Save the selling plan group. Learn more about creating selling plans here: Creating Selling Plans
Click on the Add Products button and Map Products to Selling Plan
After adding the products, go to the product page of your store and verify that everything is working as expected.
In our example, as the product price is $12.00, the price after applying a 15% discount will come to be $10.20, which will be the per-delivery price. As the customer is charged for every 30 deliveries, the subscription price will come out to be $10.20 * 30 = $306.00
Prepaid subscriptions cannot be created manually via customer portal or admin portal.
Upsell and Bulk actions are not supported
Fixed amount discounts are only supported on checkout orders
Partial billing is not supported for prepaid subscriptions. For such cases, 'No item available' inventory setting will be applied.
Prepaid selling plans don’t support changing discounts after a set number of orders, and mapping of collections. Selling plans, once configured as prepaid, cannot be changed to standard selling plans and vice-versa.
Bundles are not supported for prepaid subscriptions.
Cancellation offer (free gift) flow is not supported for prepaid subscriptions. However, customers will still be able to see the benefits page and cancellation reasons.
Quick actions are not supported including event actions, campaign actions and checkout links.
Merging of multiple prepaid subscriptions is not supported.
Editing of subscription plans is not supported on prepaid subscriptions including editing via subscription details page on admin portal, customer portal and bulk actions.
Delivery method cannot be changed for prepaid subscriptions after creation.
API Hub currently supports prepaid subscriptions on read endpoints.
Support for subscription shipping profiles is not available as of now.
If you require any further assistance, our team is here to support you. Please don't hesitate to reach out to us at support@loopwork.co or initiate a chat by clicking the support beacon at the bottom right of your screen.
Thank you,
The Loop Subscriptions Team
Contents of the article
Benefits of offering prepaid subscriptions
Key features and improvements
Setting up prepaid subscriptions
Current limitations
Help section
Benefits of offering prepaid subscriptions
Enhance subscription retention by offering attractive incentives for customers to pay upfront for multiple orders. For example, while a monthly subscription might cost $10, a 3-month prepaid subscription could be offered at a discounted rate of $25, and a 6-month prepaid subscription at just $50. This approach encourages long-term commitment and provides greater value to your customers.
Customers can also gift subscriptions to their friends and family. These gift subscriptions are paid in full upfront and can be set to expire automatically after a specified number of orders.
Prepaid subscriptions boost conversion rates and increase customer lifetime value (LTV) by encouraging longer commitments from your customers.
Key features and improvements
Loop manages prepaid subscriptions intelligently. When a prepaid subscription is created, a new order is generated for each delivery. This differs from the previous approach where multiple fulfillments were tied to a single order in Shopify.
Creating multiple fulfillments against a single order caused numerous issues with shipping applications, as they typically allow a unique order to be shipped only once. Thanks to Loop's intelligent order management, this problem is effectively resolved.
Customers have complete flexibility to manage their subscription schedules, allowing them to pause, resume, or skip orders as needed.
Setting up prepaid subscriptions
Imagine offering a health juice subscription with daily or every-two-day deliveries. Instead of billing the customer daily, you can provide a convenient monthly subscription that covers all deliveries during the month.
Go to the Selling Plans tab and click on the “Create Selling Plan” button
When creating the selling plan, ensure that “Is this a prepaid selling plan?” is checked.
In the frequency selector section, modify the "charge every" setting to your liking. This setting determines how many orders are charged together to the customers.
Save the selling plan group. Learn more about creating selling plans here: Creating Selling Plans
Click on the Add Products button and Map Products to Selling Plan
After adding the products, go to the product page of your store and verify that everything is working as expected.
In our example, as the product price is $12.00, the price after applying a 15% discount will come to be $10.20, which will be the per-delivery price. As the customer is charged for every 30 deliveries, the subscription price will come out to be $10.20 * 30 = $306.00
Current limitations
Prepaid subscriptions cannot be created manually via customer portal or admin portal.
Upsell and Bulk actions are not supported
Fixed amount discounts are only supported on checkout orders
Partial billing is not supported for prepaid subscriptions. For such cases, 'No item available' inventory setting will be applied.
Prepaid selling plans don’t support changing discounts after a set number of orders, and mapping of collections. Selling plans, once configured as prepaid, cannot be changed to standard selling plans and vice-versa.
Bundles are not supported for prepaid subscriptions.
Cancellation offer (free gift) flow is not supported for prepaid subscriptions. However, customers will still be able to see the benefits page and cancellation reasons.
Quick actions are not supported including event actions, campaign actions and checkout links.
Merging of multiple prepaid subscriptions is not supported.
Editing of subscription plans is not supported on prepaid subscriptions including editing via subscription details page on admin portal, customer portal and bulk actions.
Delivery method cannot be changed for prepaid subscriptions after creation.
API Hub currently supports prepaid subscriptions on read endpoints.
Support for subscription shipping profiles is not available as of now.
Need help?
If you require any further assistance, our team is here to support you. Please don't hesitate to reach out to us at support@loopwork.co or initiate a chat by clicking the support beacon at the bottom right of your screen.
Thank you,
The Loop Subscriptions Team
Updated on: 25/08/2024
Thank you!