How to differentiate consumables and non-renewing subscriptions?

A. Is it true that subscriptions are considered as those items that become effective right after the purchase and get expired after a certain period no matter users use them or not?

Correct

B. We are thinking of designing a product X with a service period of 30 days. X will never expire until the user decide to activate it. Will X be considered as subscription or consumable product?

A consumable product that gets consumed when activated and allows the user to do something for 30 days.

C. We understand that the subscription period of auto-renewing items must last at least seven days, but does anyone know what is the shortest duration of the non-renewable subscriptions? Would it be 1 day? 7 days? Or longer? Can we design a non-renewable subscription item with duration of one day?

At one point it was 7 days - but it is unclear whether that is still in effect. The 'consumable' can be set to allow the user 60 seconds of subscription time. Don't use the word 'subscription' to describe the active time.

D. If we provide an item and its duration period is 20 days. It will become effective immediately once the user purchases it. However, users are allowed to repurchase the item at any other date during the effective period. Is this item consumable or non-renewable subscription?

This is a non-renewing subscription. If the user purchases a second one on day 12 then that second period starts 8 days later and goes for 20 days.

E. If we provide an item that requires out-of-app services that we need a 24-hour response period for us to return the results to our users. Would this item be consumable or subscription?

Payments for "out-of-app services" can't use IAP. If the payment is not for that service but for some app functionality and there is some sort of time gap in providing the functionality then you can use consumable (if it is consumed item by item) or subscription (if they get a fixed period during which they can repeatedly use or fail to use the function.

F. Does Apple allows repurchase during the subscription period of a single non-renewing subscription item?

Yes

Will users receive any reminder that they have already purchased the item and they would not be able to repurchase it again?

The app is responsible for telling the user - you need to renew your subscription. Apple will tell the user

"You have already purchased this subscription. Do you want to renew or extend it?"

G. We are thinking about setting different pricing structure based on the type of our users (e.g. Location wise). One certain type of users would see only a few items they are affiliated to. Thus, when we submit the testing version to the app review team, the account they are using will not be able to see all the prices. Is there any risk that we will be rejected because of that?

No. Unless App Review thinks that the different pricing is because the user has given you something of value outside IAP. For example, "Send us a check for $100 and we will give you a coupon that will allow you to purchase the IAP for $0.99."

Shall we provide different type of testing accounts to the review team so that reviewers will be able to see all the prices?

You could. Or you could AND SHOULD include the concept in your notes to App Review. I'd include some sort of textfield somewhere that triggers the different 'geolocation' for testing. For example..."Dear app review, to test the IAP system please enter your ZIP code followed by "TRANSPORT ME THERE" in the textfield marked 'Nickname'. That will test the geolocation-dependent IAP system. Use Zip code 08540 for the test because we are required to give a special discount to anyone who purchases the Einstein mask IAP in Princeton, NJ."

Dear PBK,

Thank you so much for the response. Our team really appreciate your help!

In terms of question D, I think I may have not made it clear that this 20-day item is only valid for one job posting. Users can buy more of this item and apply them to multiple job postings at the same time. That is to say, we allow our users to repurchase the item and apply it to a second job posting even though their first bought item is still effective with the first job posting.

Does this item still be considered as non-renewing subscription? Based on your previous response , we think it should be consumables (as it is consumed item by item), right?

Emily

It can be either but I think it fits more easily into a non-renewing subscription.

The user purchases a non-renewing subscription and they get a 20 day posting starting now.

During that 20 days (and even after) the app gives the user a choice to 1) purchase a new listing or 2) extend the current (or past) listing. If they chose #2 then everything works as planned. The App Store will ask "do you want to renew or extend your subscription?" If they chose #1 then the app could say - "You will now be taken to the App Store to complete the purchase. Because you have previously purchase a 20 day subscription the App Store will ask if you want to 'renew or extend your subscription'. But, since you are asking to purchase a new listing, your App Store purchase will be used for a new listing not to renew or extend your earlier listing." And the app can do anything it wants each time the user makes yet another purchase.

On the other hand, if you were expecting a user to want a total of 12 '20 day listings' and to start 4 on Monday and 3 on Wednesday and maybe the remaining 5 sometime next week, then a package of 'consumable' 20 day periods would work better.

That makes things a lot easier to understand!

Thank you again PBK 🙂

Emily