NYT: E-tailers Lock In Repeat Orders

A small but growing number of online retailers are rolling out so-called auto-replenishment programs, in which customers sign up for periodic shipments of everything from pet food and steaks to diapers and acne medicine. The programs require a fair amount of finesse on the part of retailers, as they determine exactly how many razor blades a typical man uses in a month, say, or whether to give customers the option of skipping a shipment of vitamins. But for merchants that can get consumers to stay with the program, the resulting revenue stream can be a boon to business.

The story cites Home Shopping Network as one of a few examples, which lets customers subscribe to some 250 products from vitamins and tanning creams to sweaters. One interesting note is that while HSN feared the auto-replenishment program would disuade customers from ever visiting the site again, in fact the new product shipments act as a great reminder to keep people coming back to the site. This, folks, is the high art of e-commerce.