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A prepaid subscription is a subscription where a customer pays for a number of orders up front. After checking out, those orders are already scheduled for delivery at future dates. Prepaid subscriptions work especially well for:
  • Magazine and content subscriptions — pay for an annual subscription, get an edition every 2 months.
  • Habitual food & health supplements — buy a full year of daily doses for vitamins where usage is predictable.

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Benefits for merchants

  • Earn revenue up front and pull cash forward.
  • Stock and production become predictable — you already know what you need to ship months ahead of time, leading to more efficient purchasing and supply chain planning.
  • No risk of chargebacks or failed payments for future recurring shipments.
  • Let customers gift a fixed-period prepaid subscription to friends and family.

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Benefits for customers

  • Get an additional discount by paying up front.
  • Know exactly when products will ship, creating a sense of trust and predictability.
  • Gift a subscription duration to someone, for example a year’s worth of products shipped every 2 months.

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Create a prepaid subscription plan

First you need to create a plan group and one or multiple prepaid subscription plans for your products. In the following example, we’ll create a prepaid subscription plan that costs €100/year and includes 4 deliveries — one every quarter.

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Create a plan group

  1. In the Firmhouse Portal, click Plans from the sidebar.
  2. Click Create Plan Group.
  3. Give your new plan group a name such as Prepaid Subscriptions.
  4. Add all products to the plan group that you want to sell on the same annual price point. For example: €100/yr for 4 deliveries of that product.

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Create a prepaid plan

  1. Back on the Plans overview, click the [+] button in the plan group you just created.
  2. Give your plan a name, which will show up on your Storefront.
  3. From the Pricing strategy, choose Fixed price and enter your annual subscription price as amount. For example 100 for €100 to be paid at Checkout and via direct debit on annual renewal.
  4. Choose Prepaid plan for the Plan mode.
  5. Choose 1 year for the Recurring charge moment and 2 months for the Delivery cycle. This means the payment is per year, and a delivery will happen every two months.
  6. Choose Renew for the next billing cycle from Prepaid commitment. This means the subscription will automatically renew after one year.
  7. Leave the contract terms empty.
Prepaid plan on product page

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How prepaid plans show up on your store

A prepaid plan is not very different from a regular plan. If you’re using the standard Firmhouse Subscription Options theme block on your Shopify store, it will display the prepaid option alongside your other plans. In the cart: Prepaid plan in cart And at Checkout: Prepaid plan at checkout

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Order scheduling and fulfillment

After someone completes a prepaid subscription checkout, the order for the first delivery can be found in your Shopify order overview. All subsequent orders are already scheduled by Firmhouse and will show up with the status Scheduled. These orders are not created in Shopify yet — Firmhouse will create them in Shopify when the scheduled date arrives. First order in Shopify: First order in Shopify Scheduled orders in Firmhouse: Scheduled orders in Firmhouse

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Prepaid subscription renewal and cancellation

Subscription orders are automatically renewed when the next charge date is reached. For an annual subscription plan, this would be exactly one year after checking out the subscription. On the renewal date, another annual payment is attempted. After the payment succeeds, an invoice is generated, the first order of the new cycle is created in Shopify for fulfillment, and subsequent orders are scheduled on their appropriate future dates. If customers cancel their subscription before the next renewal date, no new payment is attempted and no new orders will be scheduled.