How to configure a prepaid subscription?

Understanding prepaid subscriptions

Prepaid subscriptions allow customers to pay for multiple orders upfront, while still ensuring that they receive their product on a regular schedule. This allows merchants to increase their retention rate and gives subscribers the opportunity to buy products at a more attractive price.

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.

Setting up prepaid subscriptions

1. When creating an auto-charging subscription rule, select Prepaid under the Subscription type

2. Next, set up the Deliver every field - this is how often you want to deliver products to your customers

3. Configure the Charge every field - this is the amount of prepaid deliveries for which you charge customers in one billing cycle

4. Save changes.

Example

Let’s say we have the following conditions:

• Deliver every: 1 Month

• Charge every: 6 Deliveries

• Product price: $36

• Discount: 10%

Under the given conditions, the customer will be charged semi-annually and get the product delivered every month. Payment for all 6 deliveries will be charged upfront with a 10% discount: ($36 x 6) - 10% = $194.40

In the subscription widget, you can see the total amount for all deliveries and the amount of one delivery under it.

Editing prepaid subscriptions

To edit a prepaid subscription, go to Customer subscriptions and click the required subscription. On the Subscription page, click the Edit button near Payment schedule to change the subscription frequency.

For prepaid subscriptions, the additional block Fulfillment schedule is displayed on a subscription page. This allows you to view the status of deliveries in a prepaid cycle and to edit delivery dates.

Updated on: 13/08/2024