Calendar Billing for E-Commerce:
In E-commerce based subscription businesses, calendar billing is used to determine the billing date for the subscription by considering the shipping date of the product. Generally, physical product subscriptions follow a fixed shipping cycle with a cutoff date which helps businesses determine the number of products that needs to be shipped in that cycle.
For example, let us assume that a subscription box company has its shipping as 15th of every month with the cut-off date as the 10th of every month. If you sign up for the service on the 09th, you’ll be billed by 15th of the same month and the product will be shipped at the same time. But if you’ve signed up on the 12th (or on any date post 10th of that month), your product will be shipped only in the next month and you’ll be billed only for the next month.