What is a prepaid subscription?
How does a prepaid subscription work?
A prepaid plan has two rhythms: how often the customer receives an order (the delivery interval) and how many of those deliveries one payment covers.
Example (made-up numbers): a tea shop sells a monthly box at €20, or the same box prepaid for 6 months at 15% off. The prepaid customer pays 6 × €20 × 0.85 = €102 once and receives a box every month; after six deliveries, the next payment covers the next six. A pay-as-you-go customer pays €20 every month instead.
Why do prepaid subscriptions matter?
They bring cash in earlier and lock in a longer commitment, which is why they’re common for gifts and for products customers already trust. The trade-off is flexibility: what has been paid for is fixed. Customers can’t swap products or change the interval of deliveries they’ve already paid, and a larger upfront amount can put off first-time buyers.
Prepaid also helps products that take a while to show a result. One payment for several deliveries carries the customer past the first renewals, when many pay-as-you-go subscribers reconsider.
How does Zubs handle prepaid subscriptions?
In a Zubs subscription plan, any delivery interval can be offered prepaid, with its own discount. The product-page widget shows the upfront total next to the price per delivery, and the customer portal lists the paid deliveries under each payment.
Bottom line
Prepaid means one payment, several deliveries. It suits committed customers and gifting; pay-as-you-go suits customers who want to change things as they go. Many shops offer both side by side.
Frequently asked questions
- What's the difference between prepaid and pay-as-you-go?
- Pay-as-you-go charges once per delivery. Prepaid charges once for a block of deliveries.
- Can a prepaid subscription be changed?
- Not in what gets delivered or how often. What has been paid for stays fixed until the next payment.
- Can I give prepaid a bigger discount?
- Yes. Each delivery interval in a Zubs plan has its own discount, so a prepaid option can carry a higher one.