---
title: "Getting started with Prepaid subscriptions"
slug: "getting-started-with-prepaid-subscriptions"
description: "Learn how to set up prepaid subscriptions, offering flexibility and locking in revenue while enhancing customer experience with customizable plans."
updated: 2026-02-06T15:22:52Z
published: 2026-02-06T20:06:24Z
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.skio.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Getting started with Prepaid subscriptions

## Before you start

- If you want to offer **prepaid gift subscriptions** (where a customer gifts a subscription to someone else), [check out our prepaid gift subscription setup guide here.](/help/docs/how-to-set-up-prepaid-gift-subscriptions)
- If you want to convert prepaid subscriptions into regular subscriptions, you can do this using a Journey. Learn more in our help doc on [converting Prepaids to regular subscriptions](/help/docs/understanding-the-sunset-prepaid-journey-action)*.*

## What are prepaid subscriptions?

Prepaid subscriptions are a type of [selling plan](/help/docs/getting-started-with-selling-plans) that lets customers pay upfront for multiple shipments instead of being charged one order at a time. For example, if a customer buys a 3-month prepaid subscription, they pay the full amount on the first order. The second and third shipments then go out automatically as $0 orders.

Prepaids are different from standard subscriptions. They offer more flexibility, which makes them ideal for [gift subscriptions](/help/docs/how-to-set-up-prepaid-gift-subscriptions), product bundles, or plans that reward longer-term commitment. You can also customize how these subscriptions renew and when they ship.

## Why use prepaid subscriptions?

Prepaids incentivize customers to pay upfront for orders they already plan to place. This locks in revenue and reduces churn by committing them to a set subscription interval.

They are also a useful option for creating membership-style programs. Since customers pay in advance, you can offer added flexibility such as product swaps, flavor changes, or variant updates between shipments.

For brands with daily-use products (like supplements), prepaid plans help set clear expectations. Instead of canceling after one shipment, customers know they are committing to a multi-month journey. You can encourage consistency while still allowing them to adjust delivery dates or product choices as needed.

## How do I set up prepaid subscriptions?

### Step 1: Create a new Prepaid selling plan

1. In the left-hand menu of your**Skio Dashboard**, go to **Products > Selling Plans.**
2. Click**Create New Plan** in the top right corner
3. Choose **Create Prepaid** from the dropdown menu

> [!NOTE]
> **Note**
> 
> For example, to bill customers every 3 months but deliver monthly, set the charge interval to 3 months and the delivery interval to 1 month. Use the structure shown in the product configuration screen.

### Step 2: Configure your Prepaid selling plan

![Screenshot 2024-11-04 at 9.27.47 AM.png](https://cdn.us.document360.io/a953bba6-c70d-43ce-bc77-d7f32a8fc514/Images/Documentation/30634181617563.png)

Fill in the required details:

- **Selling Plan name**: This is customer-facing (e.g., "Every 1 Month(s)").
- **Prepaid billing interval**: How often the customer is charged (e.g., every 3 months).
- **Prepaid delivery interval**: How often the product is shipped (e.g., every 1 month).
- **Pricing policy**: Set a flat price or a discount percentage.
- **Min/Max cycles**: (Optional) Set minimum and maximum number of prepaid cycles.

> [!NOTE]
> **Note**
> 
> The percentage discount does not account for the number of deliveries. If your prepaid products are priced specifically in Shopify, use the **Set price** option.

### Step 3: (optional) Configure a recurring pricing policy for future prepaid cycles

In the **Advanced** section, you can set a recurring pricing policy to display at checkout for future prepaid cycles. This is helpful if you use [a Journey to convert prepaid subscriptions into regular ones](/help/docs/understanding-the-sunset-prepaid-journey-action), so customers can see what they’ll be charged once the prepaid term ends.

- **After cycle**: Choose how many cycles should pass before the discount is applied.
- **Pricing method**: Select between percentage or fixed price.
- **Discount**: Set the discount value.

> [!CAUTION]
> **Warning**
> 
> This setting only affects the price displayed at checkout. You must also [use a Journey](/help/docs/understanding-skio-journeys) to actually update product pricing for future cycles and convert it to a regular recurring subscription.

### Step 4: Save your selling plan

Click **Save** to save your selling plan.

## What the customer experience looks like

At checkout, customers will see a clear message confirming they’re being billed upfront for the full prepaid subscription term.

![](https://2432488274-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6tgHoTWVJ8jGZz1VwcUl%2Fuploads%2Fri0vFu6NtAHoEOq4i3OD%2Fprepaid8.png?alt=media&token=c9ea9cbc-5ada-4144-842c-ee3965116c01)

In the customer portal it will show the full schedule of upcoming shipments and the next charge date.

![Screenshot 2024-11-04 at 9.32.13 AM.png](https://cdn.us.document360.io/a953bba6-c70d-43ce-bc77-d7f32a8fc514/Images/Documentation/30634181620891.png)

In Shopify, the order page will clearly indicate that the subscription is prepaid when viewing the customer’s subscription details.

![](https://2432488274-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6tgHoTWVJ8jGZz1VwcUl%2Fuploads%2FV8Cs8gwGEkxHzXzt20ib%2Fprepaid15.png?alt=media&token=02d2975e-0b6b-40a7-b85d-3e93b5a1a7fc)

## How do customers skip prepaid orders?

Customers can skip their next delivery by clicking **Skip** in their customer portal, as long as it's enabled in your portal settings. A confirmation message will appear to delay the next delivery date.

![Screenshot 2024-11-04 at 9.33.35 AM.png](https://cdn.us.document360.io/a953bba6-c70d-43ce-bc77-d7f32a8fc514/Images/Documentation/30634168706331.png)

After skipping, the dashboard updates the prepaid shipment schedule automatically.

- The next delivery and renewal dates shift forward accordingly.
- For example, if the next charge was set for May 5, that date remains, but the delivery schedule adjusts to reflect the skipped order.

This keeps the prepaid commitment intact while allowing flexible delivery timing.

![Screenshot 2024-11-04 at 9.35.22 AM.png](https://cdn.us.document360.io/a953bba6-c70d-43ce-bc77-d7f32a8fc514/Images/Documentation/30634282579227.png)

---

### Prepaid subscription FAQs

#### Can a prepaid subscription include one time add ons?

Yes, subscribers can add one-time add-ons to their prepaid subscription and they will be charged when the order processes via the card on file.

If the payment method fails because of the add-on being billed, the prepaid subscription can cancel if the dunning limit is reached and the prepaid $0 shipments will not be sent.

#### Can the subscription continue for the customer after the prepaid period?

Yes, if you'd like for the prepaid subscription to end completely after the initial number of shipments is met, you can set the number of max intervals to equal the number of intervals in the prepaid period.

#### Can I convert a prepaid subscription into a recurring one?

Not directly. Instead, use the Sunset Prepaid Journey action to end the prepaid subscription at the end of its term, then have the customer start a new recurring subscription.

#### Do prepaid subscriptions charge shipping on recurring orders?

No, prepaid subscriptions bill the full term upfront. Future shipments within that prepaid term are $0 orders (both for product **and** shipping) unless you specifically configure otherwise.

By default, Skio treats these as **$0 shipments**. That means no additional charges apply at the time of each shipment unless your Shopify shipping profile or a Journey rule explicitly adds a delivery fee.