6 Reasons to Use Shopify Payments to Run Your Subscription Business
Shopify is an ecommerce entrepreneur’s best friend. Shopify makes it easy for a business to build, grow and scale their operations thanks to a powerful suite of the out-of-the-box tools that they provide to merchants. From great design templates, to engaging marketing tools to solutions to help you ship your products, Shopify provides you all of the tools that you need from the convenience of a single platform.
Included in this suite of tools is Shopify Payments. Shopify Payments is self-described as the easiest way to accept payments online. When you use Shopify Payments you are automatically set up to accept all major payments on your Shopify store. Once Shopify Payments is enabled, you don’t need to worry about setting up the likes of Stripe and having your finance team jump through complicated hoops in order to enable payments on your site to make sure that money is properly flowing into your bank account. Additionally, since Shopify Payments accepts all major forms of payments, you make it simpler for your customers to pay you. With Shopify Payments, you can rest assured that your orders will be processed properly and deposited into your bank account with ease.
And if you are thinking about or already have subscriptions enabled for your Shopify business, there’s no reason why you should use a solution other than Shopify Payments to process your subscription orders.
Here are 6 reasons as to why you should use Shopify Payments to power your Shopify subscription business:
- All of your orders can be processed by one payment processor. Let’s say that you are a Shopify brand and use a third-party payment processor, like Stripe to power your subscription business. Under this scenario, you would have to manage two separate payment processors which would be a headache for your finance team because they would need to reconcile two different accounts. If you choose to run your subscription business through Shopify Payments, then both of your stores’ regular orders and your subscription orders will be processed through a singular payment gateway, making it easier for your teams to keep track of your finances.
- You can leverage Shop Pay. Shop Pay is the best converting checkout on the internet. One study showed that Shop Pay has on average a checkout-to-order rate of 1.72x times higher than a regular checkout. As a shopper, Shop Pay saves your information, so it drastically reduces friction and makes it easier for customers to checkout because all of their payment information is already saved meaning that they can safely and securely checkout in a simple tap. If you are using a third-party payment processor, you are not able to leverage this powerful tool.
- Shopify Payments helps manage order risk and chargebacks. By using Shopify Payments, you can leverage Shopify’s pre-built tools to help manage order risk for your subscription business, just like you can for your regular business. You can set up fraud prevention systems such as Address Verification System (AVS) and Card Verification Value (CVV). You can also see subscription orders flagged as low, medium or high risk right within the Shopify admin and can verify, cancel or refund high risk orders to help reduce the risk of fraud. And the great thing about using Shopify Payments is that you don’t need to leave the Shopify admin in order to monitor the order risk; you can do it all from the convenience of the Shopify platform. The same can be said about issuing chargebacks with any subscription orders when you use Shopify Payments. You can issue chargebacks right from Shopify, cutting the need to sign into a third-party app in order to issue a refund. This streamlines your business and eliminates headaches for you.
- By using Shopify Payments, you get access to Shopify’s tools aimed at helping you turbocharge your business. Shopify has and continues to build a suite of tools intended to grow your business while saving you time. These tools include Shopify Balance which allows you to easily manage your store’s payments and transactions from the convenience of a single platform, Shopify Capital helps get you access to business loans without filling out stacks of paperwork and Shopify Markets allows you to broaden the reach of your store and sell internationally with ease. No other third party payment processor provides you access to these types of tools aimed at reducing your headaches as a business owner and driving growth. By opting to use a third-party payment processor you would be electing to bypass these great products that Shopify has built to help you scale your subscription business.
- Shopify Checkout and Shopify Payments help prevent headaches. By leveraging Shopify checkout and Payments, you don’t need to worry about having duplicate products and discount codes and managing the headaches that go along with that. By having a single payment provider process both your regular orders and your subscription orders, you only need to keep track of one set of products and discount codes. If you’re using a third-party checkout to process subscription orders you need to create a separate set of products and discount codes which is a tracking and reporting nightmare. The same can be said about keeping track of inventory and products. By processing subscriptions directly on the Shopify Checkout with Shopify Payments you only need to worry about keeping track of one set of inventory and not needing to integrate multiple inventory tracking systems.
- It’s more economical than other solutions. When you choose to use a third party payment processor other than Shopify Payments, you are going to have to pay an extra transaction fee. The exact amount will vary depending on what Shopify plan you are (Plus, Advanced, or Basic for example) between .15% to 2% more per transaction. So not only is Shopify Payments more convenient and set up to scale your subscription business, it is also cheaper for you to run your subscription business through.
If these reasons don’t have you convinced to stick with Shopify Payments to process your subscription orders, let’s throw one more reason out to you. You don’t need to do anything extra to set Shopify Payments up to process your subscription payments!
Whether you are new to subscriptions entirely or currently work with another provider to enable subscriptions on your site, Upscribe is here to help your subscription business grow. Learn more about Upscribe by scheduling a demo.