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What is a Pay-Per-Delivery subscription?
What is a Pay-Per-Delivery subscription?

Learn how the subscription model works

Adriana Pope avatar
Written by Adriana Pope
Updated over 3 years ago

Pay-per-delivery is a subscription plan where customer pays for goods or services per delivery on a recurring basis.

In a nutshell, Pay-per-delivery charges the customers every time a product is shipped to them.

For example, a customer pays $15 every month for a bag of coffee delivered every month

Pay-per-delivery is great for pantry or hygiene items that need to be used on a recurring basis.

Pay-per-delivery is perfect for monthly subscription boxes (where the customer is billed monthly and receives a box every 30 days).


Pay-Per-Delivery Subscription Example

In this example, we created a subscription group called "Pay-per-delivery Subscriptions"

We added two subscription plans to the group.

Monthly Pay-Per-Delivery Setup

For the monthly subscription, the customer pays every month to get a delivery every month. To achieve this, set the delivery frequency & billing to every month.

Weekly Pay-Per-Delivery Setup

For the weekly subscription, the customer pays every week and gets a delivery every week. To achieve this, set the delivery frequency & billing to every week.

This is what these pay-per-delivery subscription plans would look like when we're all done.


How to Tell the Difference between Pay Per Delivery & Prepaid Subscriptions

If you delivery frequency matches your billing frequency, then you have a pay-per-delivery subscription plan.

For example: A pay-per-delivery subscription plan could be:

  • Delivery every week & billing every week

  • Delivery every month & billing frequency every month

  • Delivery every quarter & billing every quarter

  • Delivery every year & billing every year

The opposite of a pay-per-delivery subscription plan is a prepaid subscription plan.

A Prepaid subscription lets the customer pay upfront for many shipments.

Good Rule of Thumb: If your delivery frequency does not match your billing frequency, then you have a prepaid subscription.

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