Articles on: Loop Features

Prepaid subscriptions V2

Prepaid subscriptions allow customers to pay upfront for multiple orders and receive their products on scheduled dates as per the delivery frequency configured on the subscription.




Contents of the article



Benefits of offering prepaid subscriptions
Key features and improvements
Setting up prepaid subscriptions
Current limitations
Need help?

Benefits of offering prepaid subscriptions


Improve subscription retention by offering more incentives to customers to pay upfront for multiple orders. While a monthly subscription may cost $10, opting for a 3-month prepaid subscription might cost only $25, and a 6-month prepaid subscription may cost $50 only.
Customers can also gift subscriptions to their friends & family, where the subscription is paid fully in advance and can be configured to expire automatically after a set number of orders.
Prepaid subscriptions improve conversion rates and increase LTV (longer commitments from your customers).

Key features and improvements


Loop handles prepaid subscriptions in an intelligent manner. On creation of prepaid subscriptions, a new order is created for each delivery, unlike the previous approach wherein multiple fulfillments were created against a single order in Shopify.
Creation of multiple fulfillments against a single order caused a lot of issues with shipping applications since they allow a unique order to be shipped only once. With the intelligent order management inside Loop, this is no longer an issue.
Customers enjoy full flexibility to control the order schedule where they can pause, resume, and skip orders in their subscriptions.

Setting up prepaid subscriptions


Let’s take a scenario where we want to offer a health juice subscription where a customer will be getting the product delivered daily or every 2 days. Now, as a merchant, you would not want to bill the user daily and instead want to offer a monthly subscription.

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.
Product editing is not supported once a subscription is created. This includes editing products via customer portal, admin portal, upsell, swapping, bulk actions and flows.
Discounts cannot be modified once a subscription is created. This includes customer portal, admin portal, bulk actions, and churn flows.
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.
Flows support is not available for prepaid subscriptions.
Cancellation offer (free gift) flow is not supported for prepaid subsciptions. 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.
Prepaid subscriptions cannot be reactivated. However, paused subscriptions can be resumed.
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 does not support prepaid subscriptions.

Need help?


No need to fret. We’re here to jump in and help you out. Reach out to us at support@loopwork.co, or feel free to ping us on chat by clicking the support beacon on the bottom right.

Thanks!

Loop Subscription Team 🙂

Updated on: 24/06/2024

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