To effectively and securely collect payments, you must, among many other things, open up merchant accounts, put payment gateways in place, manage contracts with global payment service providers, comply with PCI DSS, and abide by global taxation requirements.
This post concludes our look at different types of commerce solutions by exploring the pros and cons of full-service commerce solutions.
The first two posts in our Evaluating Commerce Solutions series...
While many subscription commerce/billing platforms are great if you offer a complex or high volume subscription product, or are looking for quick time-to-market, the challenge some companies discover is that most of these solutions only support a fraction of the capabilities that your business might require.
With an array of options, it can be easy to get locked into a provider that doesn’t meet your company’s speciﬁc requirements. Or, even worse, the wrong solution becomes a limiting factor in responding to future shifts in products/services, pricing or market opportunities.
Subscription billing models comes in all shapes and sizes. As more companies apply subscriptions to their businesses, they explore different ways to bill their subscribers. But which model is really best to use? And what are the pros and cons of the model you choose?
Companies like Netflix and Spotify are able to cultivate cohorts of customers who continue to submit additional payments over time for two interdependent reasons: Customers frequently use the service, and the service is frequently updated.
Adopting a subscription business model means making changes. That's not just changing how you price your products and how you interact with your customers. You also need a new way to relate to subscription metrics.
To give you some context for some of the costs you might not expect in the area of billing and payments, we wanted to focus on the payment processing capabilities required to grow online revenue and the development resources needed to make sure everything is functioning smoothly.
Whether your online sales strategy is nice or naughty over the next few months will determine whether you wake up to a stocking stuffed with shiny new subscription revenue ... or an inert, lusterless lump of unengaged users.
The road to global subscription success is paved with knowledge and understanding. Beyond creating seamless customer experiences and implementing complex billing scenarios, you also have to know what compliance issues you will face on your road to global customers and understand how to mitigate that risk.