Olly’s Box is a monthly subscription box aimed at keeping dogs happy and healthy.
Olly’s Box is a monthly subscription box aimed at keeping dogs happy and healthy.

DOGGONE IT: The trick you could be missing in your business

A NEW report has highlighted the success of subscription services in boosting business revenue in an increasingly mobile-driven digital environment. 

Nearly nine-in-ten Australian businesses report that revenue has increased after they implemented a subscription-model, with one-in-three saying revenue increased by over 30%, the report found.

Nearly half of Australians go to online marketplaces to shop for products, trumping search engines (43%) and online retail stores (29%)

According to the report,  a quarter of 35-49 year-olds are now making social media purchases, a significant jump from one-in-ten in 2017, reflecting the broad adoption of purchasing on social.

The 2018 PayPal mCommerce Index surveys payment patterns and expectations of Australian smartphone users and provides new insights into the growing mobile commerce landscape in Australia.

This edition reveals that while three quarters of Australians (72%) are shopping on their mobiles, a significant gap remains between high consumer adoption of mCommerce and business readiness to accept mobile payments.

Currently just over half of Australian businesses are optimised to accept mobile payments (55%).

Despite this lack of business readiness, the average percentage of sales taken via mobile has jumped 32% year-on-year (25% vs 19% in 2017), indicating the strong growth of mobile as a channel for Australian retail.


Queensland businessman Drewe Apps founded Olly's Box, a monthly subscription box aimed at keeping dogs happy and healthy.

"Every month we deliver natural treats, interactive toys, and handy accessories to dogs and their parents all over the country,'' Apps said.

"Each Olly's Box is carefully tailored to the size, gender, personality and dietary requirements of the lucky dog, and is designed to take them and their parents on an adventure of learning and discovery."

"Everything we do is designed to help enhance the relationship with our customer, and to join them on their journey as a dog parent."

"Our mobile experience is critical to our success as our customers expect to be able to subscribe and engage with us at any time, and from anywhere.

"As a Queensland business supplying to the rest of Australia, the online experience we provide to our customers is becoming just as important as the products they receive each month," Apps added.

PayPal CEO Libby Roy. Picture: Hollie Adams
PayPal CEO Libby Roy. Picture: Hollie Adams


Subscription services - a new era of purchasing and selling

The PayPal mCommerce Index found that half of the Australian population (50%) are already using at least one subscription service and spending an average of $32 per month on subscriptions.

Nearly a third of Australians (30%) are subscribed to services that make them happy - double the amount that are subscribed for convenience and necessity (15%). The happiness factor is even higher for Gen Z (18-23 year-olds) at 40%.

Libby Roy, PayPal Australia Managing Director said: "While subscription services are most popular with younger shoppers, adoption is strong across all demographics and the popularity of these "set and forget" services is paying off for businesses."

The vast majority of Australian businesses (86%) said that revenue increased after they implemented a subscription model and one in three businesses (36%) reported a revenue increase of more than 30%.

Regardless of whether they offer a subscription service or not, a third of businesses acknowledge that subscriptions make it easier to retain customers (37%) and drive a recurring revenue stream (35%).

"Despite strong uptake of subscription services, our research found that only one-in-ten Australian businesses (11%) currently offers subscriptions, revealing an opportunity for businesses looking to improve customer loyalty and maintain a recurring revenue stream," said Ms Roy.

Movies, music and software are the top three most popular categories for online subscriptions.

However, younger shoppers (18-34 years-old) also expressed considerable interest in subscriptions across categories including beauty and skincare, freshly-prepared meals, clothing and active wear and even pet accessories.