Delivery Subscription Improvements (Your Farm Can’t Live Without)
In our position at Barn2Door, we analyze data and trends across 1000’s of Farms in all 50 states. One of the biggest trends we see unfolding for Farmers is Subscriptions.
In recent months, we’ve seen record numbers of new Subscriptions as buyers seek to secure ongoing commitments from their favorite Farmers to feed their families. The good news is that Farms offering Subscriptions are winning --- securing guaranteed sales and earning 2x+ more in average monthly revenue (versus Farms who do not offer Subscriptions).
The Barn2Door Product team has talked to dozens of Farmers who offered their feedback on “what else?” we could do to make Subscriptions even better for their business. Here’s what we are now pleased to debut.
Delivery Fees and Taxes are Now Segregated Per Fulfillment
With each new Subscription, Delivery fees and taxes are applied ratably for each fulfillment. When buyers choose to pay-as-you-go, then the Delivery fees and taxes are paid with each Delivery. However, if a buyer chooses to pay upfront, then all the Delivery fees and taxes are paid upfront. Taxes, if applicable, are automatically calculated based on the categories you have designated for your Farm Products. Both Delivery fees and taxes are displayed as separate line items on the receipt.
“Late Enrollment” Subscriptions
This improvement is a game-changer and will help Farmers increase cash flow mid-season without any additional hassle. For Subscriptions with a start and end date (often the case for seasonal Subscriptions), buyers can now purchase a Subscription that has already ‘started’. If a Farm offers a 20-week Subscription, they can choose to leave that Subscription in their store for new buyers to purchase after the Subscription period has already begun. Whether there are 15, 12, or 4 weeks remaining (in the 20-week Subscription), buyers can sign up and will be charged a prorated amount for the remaining Subscription.
A Single Delivery Fee Applies to “Add-On” Orders
Unique to Barn2Door, Farms offering Subscriptions on a recurring Delivery schedule can encourage buyers to add items for that same Delivery day, without incurring additional Delivery fees. For instance, a buyer who purchased a 20-week Subscription can add new items or Subscriptions to that same Delivery schedule or day at a later time without being charged an additional Delivery fee.
“Free Delivery” Will Be Applied Across Aggregate Orders
We want your buyers to keep shopping and add on multiple orders for the same Delivery day. If your Farm chooses to offer a “free Delivery” threshold with a minimum purchase amount, Barn2Door will identify all Orders placed by a buyer for the same day. If across multiple orders your buyer hits that ‘free Delivery’ threshold, the Delivery fee will automatically be waived or refunded. This patent-pending feature allows Farmers to secure base commitments through recurring Subscriptions, then encourage Add-on purchases to qualify for “free Delivery.” For instance, a Farm could offer a 20-week Subscription at $75/week with a $10 delivery fee. Then, if the Farm promotes “free delivery” with every order over $100, a buyer will be enticed to make additional purchases to exceed the free delivery fee threshold.
However, buyers are used to paying for the convenience of having food arrive on their doorstep. In fact, more than 60% of Farms charge a Delivery Fee on Barn2Door. If customers aren’t reaching your minimum threshold to qualify for free delivery, then make sure you charge 10% of your average order value (e.g., if your average order value is $100, a $10 delivery fee is is suitable). If Amazon charges a flat fee for all grocery deliveries of $9.95 to cover their expenses, then your Farm should consider charging for Delivery too.
With these features, along with many more, Farmers can curate a Subscriptions service to secure recurring sales, save time and money, and delight customers. Barn2Door is constantly improving our software, building a platform that is dedicated to supporting Farmers in selling direct.
Barn2Door provides an all-in-one solution for Farmers to grow and manage their business. If you’re curious to learn why successful Farms run on Barn2Door, watch this 5-minute video.