Continuity sales refer to the practice of selling a product or service on a recurring basis, typically through a subscription or membership model. Examples of products that are commonly sold through continuity sales include magazines, vitamins, and skincare products.
The main difference between continuity sales for retail and online ecommerce is the physical presence of the customer. In-store continuity sales typically involve the customer visiting a physical location to make a purchase and sign up for a subscription, while online continuity sales are conducted entirely through a website or mobile app.
For in-store continuity sales, common payment methods include credit and debit card, cash, and check. Online continuity sales typically involve using a payment gateway to process credit and debit card transactions.
In-store solutions for retail continuity sales can include point-of-sale systems with built-in support for recurring billing and subscription management. For ecommerce continuity sales, a good solution can include a platform that allows for recurring billing and subscription management, such as Stripe, Paypal, or Recurly.
Continuity sales are considered high-risk in the payment industry because of the high chargeback and fraud ratio. This is because customers may forget they have signed up for a subscription and request a chargeback, or fraudsters may use stolen payment information to sign up for subscriptions.
Continuity and subscription box are related concepts but there is a difference between them.
Continuity refers to the practice of selling a product or service on a recurring basis, typically through a subscription or membership model. This can include items such as magazine subscriptions, vitamins, and skincare products, where the customer pays a recurring fee to receive the product on a regular basis.
Subscription box, on the other hand, refers to a specific type of continuity model where customers pay a recurring fee to receive a box of curated products on a regular basis. Subscription boxes can include items such as food, clothing, or beauty products, and the items included in the box are usually a surprise to the customer. Subscription box services are popular among companies that offer niche products and want to build a loyal customer base.
It is possible to have a merchant account to sell continuity sales online and in-store. However, because of the high-risk nature of continuity sales, it may be more difficult to obtain a merchant account and the fees may be higher.
The legality of continuity sales may vary by state, as some states have laws that regulate continuity sales and subscriptions. It’s important to check the laws in your state to ensure compliance.
Continuity sales have a high chargeback ratio because customers may forget they have signed up for a subscription and request a chargeback, or fraudsters may use stolen payment information to sign up for subscriptions. Additionally, when a customer cancels a subscription, they may be entitled to a refund for any prepaid, unused services, which can also contribute to high chargeback ratios.