Types of Subscription Models: Product Subscriptions

The subscription business model is a business model in which a customer pays a recurring price at regular intervals for access to a product or service.

It’s a common model across many industries — from digital products like software (SaaS), media like newspapers and streaming services, consumables like coffee or food, to physical products such as bikes, furniture, or electronics.

There are many variations of the subscription model, including:

• Product Subscriptions
• Product Rentals
• Product Leases
• Product-as-a-Service
• Subscribe-to-Own (Subscribe-to-Buy)
• Pay-per-Use
• Subscribe & Save
• Membership

This article explains Product Subscriptions — how they work, their benefits, and why more and more businesses are turning to this model.

circuly supports all types of subscription models such as product subscriptions, product rentals, product lease, rent-to-own, membership, product-as-a-service, pay-per-use etc.

What Are Product Subscriptions?

A product subscription is a business model where customers pay a recurring fee to access or use a physical product instead of buying it outright.
The ownership of the product remains with the business, while customers enjoy continuous access for as long as they subscribe.

Product subscriptions can be flexible in duration — from one month to ongoing access — and often include services such as maintenance, repairs, insurance, or upgrades. The promise to the customer is convenience and freedom from ownership responsibilities, while the business gains recurring revenue and ongoing customer engagement.

Why Businesses Choose Product Subscriptions

For businesses, the product subscription model transforms irregular sales into predictable, recurring income. It lowers the financial barrier for customers, supports sustainability through reuse, and builds stronger brand loyalty through ongoing engagement.

Product subscriptions also fit perfectly within the circular economy, where keeping products in use for longer creates both economic and environmental value.

Does a Product Subscription Model Make Sense for Your Business?

A product subscription model can create immense value — but it doesn’t fit every business or product type.
Here are key questions to help you evaluate if it’s right for you:

1. Does the ownership stay with you?

In a product subscription, ownership remains with the business.
Customers only pay for access, not ownership, and buyouts are usually not offered.
That means your products must be able to return, be refurbished, and go through multiple subscription cycles — maintaining value across each use.

2. Can your product deliver ongoing or perceived value?

Customers will always compare the cost of subscribing to the cost of buying — especially second-hand.
For a subscription to make sense, it must provide something more than a one-time purchase: convenience, flexibility, peace of mind, or premium service.

Franz, from Bike Club, explained it perfectly:

“People can always compare the cost of subscribing to buying second-hand.
But with Bike Club, they get high-quality branded bikes, no maintenance worries, and no hassle of reselling when their child outgrows it.”

That’s the kind of added value that makes subscriptions appealing — not just cheaper, but easier and smarter.

3. Can your operations handle multiple lifecycle loops?

Since products return after every subscription period, your business must be ready to manage inspections, repairs, and reactivation.
This is where tools like circuly help — tracking product condition, automating returns, and keeping your stock ready for the next subscriber.

4. Is your pricing model sustainable?

Successful subscriptions balance affordability for customers and profitability for your business.
That means understanding your unit economics — how much it costs to acquire, maintain, and re-circulate each product.

5. Can you provide a frictionless customer experience?

Customers expect subscription experiences to be as easy as streaming services.
Billing, renewals, upgrades, and returns should be simple, transparent, and digital — not handled over email or spreadsheets.

6. Is long-term customer engagement part of your strategy?

A subscription is more than a payment model — it’s a relationship model.
If your goal is to build ongoing touchpoints and lifetime value instead of one-time sales, a subscription model can be a strong fit.

Examples of Product Subscription Businesses

Product subscriptions have spread across nearly every industry. Here are some real-world examples:

• Bike Club (UK) – parents subscribe to kids’ bikes and swap sizes as their children grow.
• Strollme (Germany) – offers baby strollers and gear on monthly plans instead of one-time purchases.
• Grover (Germany) – gives customers access to electronics, laptops, and smartphones on flexible monthly subscriptions.
• Riese & Müller (Germany) – runs premium e-bike subscriptions for urban and corporate mobility.
• Myles (India) – enables car and mobility subscriptions for individuals and fleets.
• Lizee (France) – powers fashion brands to offer clothing subscriptions and rental-based reuse models.
• IKEA (Sweden) – has tested furniture subscription programs to encourage reuse and circular consumption.
• Nespresso (Global) – offers coffee machine subscriptions that bundle the device with recurring capsule deliveries.
• TIER Mobility (Europe) – provides shared e-scooters through subscription passes for frequent riders.
• Bloom Baby (US) – offers baby gear subscriptions with swap and upgrade options as families grow.

These examples show how flexible the model is — fitting everything from consumer goods to mobility, electronics, and home essentials.