Glossary of eCommerce Subscription Terms

Subscriptions, Defined

For Shopify merchants chasing recurring revenue changes everything. Instead of chasing the next sale, you have to nurture customer relationships that will pay dividends month after month (and hopefully year after year). But behind every “subscribe and save” button on every e-commerce store, a web of billing cycle, payment recovery, churn prevention, and lifetime value optimization strategies wait. Get them right, and you've built a successful brand. Get them wrong and you're hemorrhaging subscribers faster than you can acquire them.

The terminology behind those strategies can feel impenetrable. MRR versus ARR. Voluntary versus involuntary churn. Dunning sequences and cutoff days. Well. We created this glossary to demystify that vocabulary. Whether you're calculating your first Monthly Recurring Revenue forecast or fine-tuning your cancellation flows to stem subscriber losses, you'll find straightforward explanations for the terms that matter. Hopefully no jargon for jargon's sake. Just the concepts for turning one-time buyers into long-term subscribers defined.

Build-a-Box

Bundle and Subscribe

Churn Rate

Convertible Subscription

Customer Lifetime Value (LTV/CLTV)

Cutoff Days