Understanding E-Commerce Parent Orders, Subscriptions, Memberships, and Renewal Orders with Statuses

Understanding E-Commerce Parent Orders, Subscriptions, Memberships, and Renewal Orders with Statuses

When a customer purchases a subscription-based membership, E-Commerce creates multiple linked records in the system. Let’s break it down:

1. Parent Order (Initial Purchase Order)

• Definition: This is the original order created when a customer purchases a subscription (which may grant a membership).
• Linked to:
  • A Subscription (via E-Commerce > Subscriptions)
  • A Membership (via E-Commerce  Memberships)
• Common Statuses:
  • Pending Payment – Waiting for the payment to be completed.
  • On-Hold – Waiting for offline payment. 
  • Completed – Payment and setup done.

Example:

A user purchases an Annual Membership that requires a subscription.

• E-Commerce creates a parent order for the initial purchase.
• A Subscription is generated and linked to this order.
• A Membership is activated based on this order.

2. Subscription (Recurring Billing)

• Definition: An E-Commerce Subscription manages recurring payments and tracks ongoing billing.
• Linked to:
  • The Parent Order (for the initial purchase)
  • Renewal Orders (future payments)
  • The Membership (access control)
• Common Statuses:
  • Active – The subscription is running, and future payments are scheduled.
  • On Hold – Waiting for offline payment.
  • Cancelled – The subscription is no longer active (manually by user or admin or due to payment failure).
  • Expired – The subscription is no longer active (manually by user or admin or due to payment failure).

Example:

• A user’s subscription is active → Membership access continues.
• The user cancels the subscription → Membership access continues until the current period ends.
• The subscription fails to renew → Membership is put on hold.

3. Renewal Order (Recurring Payment Order)

• Definition: Every time the subscription renews, E-Commerce generates a renewal order for payment tracking.
• Linked to:
  • The Subscription
  • Payment gateways (Stripe, PayPal, etc.)
• Common Statuses:
  • Pending Payment – Waiting for renewal payment.
  • Completed – Payment received, renewal processed.
  • On Hold – Waiting for offline payment.
  • Cancelled – If the user cancels before renewal.

Example:

A user has an annual membership subscription.

• E-commerce generates a renewal order every 12 months.
• If the payment succeeds → The order is completed, and membership remains active.
• If the renewal order is awaiting payment, → The order is pending payment, and the subscription is on hold.

4. Membership (Access Control)

• Definition: Controls what content or features a user can access.
• Linked to:
  • The Parent Order
  • The Subscription
• Common Statuses:
  • Active – Membership access is granted when parent/renewal order is paid.
  • Paused/On Hold – If the subscription is on hold.
  • Cancelled – Membership access is revoked (e.g., if the subscription is canceled).
  • Expired – Membership period ended (e.g., if the subscription is marked as canceled or expired).

Example:

• If the subscription remains active, the membership stays active.
• If the subscription is on-hold, the membership is paused.
• If the subscription expires, the membership expires too.

Final Flow Overview

1. Customer purchases a subscription-based membership → Creates a Parent Order.
2. Subscription is created → Linked to the Parent Order.
3. Membership is granted → Linked to the Parent Order and Subscription.
4. When renewal is due, a Renewal Order is created.
   • If the renewal order is paid, → Membership stays active.
   • If the renewal order is awaiting payment → Subscription and membership go on hold.