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Is your retail business part of the eCommerce trend everyone’s signing up for?
According to The UK Subscription Box Boom Report from Royal Mail, the subscription box market is estimated to hit the value of £1 billion by 2022.
Subscription boxes allow customers to sign up for regular deliveries of everything from craft beer to underwear, vegan beauty products to garden flower seeds, and gourmet cheese to gadgets.
Royal Mail is forecasting there will be over 65 million deliveries of subscription boxes annually by next year, with 329% growth in spending on male grooming subscriptions and a 203% increase for health & beauty.
Why are subscription boxes so popular with customers?
The COVID-19 pandemic has dramatically changed the way people buy things and the resulting surge in eCommerce demand has been colossal. Yet, the growing love for subscription boxes has not been born simply out of non-essential shop closures and necessity…
Consumers certainly love the subscription box model for its convenience, but what many enjoy even more is personalisation. The decline of face-to-face customer service means shoppers are seeking that connection in other forms. The expertise and reassurance they once received at the beauty counter or till point is what validates their purchase today and encourages them to return in future.
Established in the UK way back in 2013, Birchbox has always been a beauty brand at the vanguard of the subscription box market. Customers provide information about their skin, hair, and how they want to look, for example ‘fashion-forward’ or ‘classic beauty’. Experts then carefully curate products to fit those individual needs and desires.
Dollar Shave Club asks customers to, “tell us about your grooming needs and we’ll recommend the perfect products” and Lush sends subscribers a skincare box “fresh from the field” containing seasonal flowers as well as face masks and cleansers.
That curation is also a driving force in the popularity of subscription boxes. It adds an element of surprise and excitement that amplifies the buzz of the shopping experience. It’s about the joy of opening the box as much as what’s inside – a bit like being given a gift.
Brands will tease what might be in the box on social media – cultivating an air of anticipation.
Indeed, the growth in the use of mobile devices and social media platforms has really spurred subscription box popularity on. People will not only seek out products this way; they will share their user experience via their Instagram posts, for example. The customer journey becomes a ‘community event that keeps shoppers coming back for more, from live chat launches to unboxing stories.
Advantages for the subscription box model for your business
It’s not just beauty and grooming subscription box companies that are seeing a boom. Hello Fresh and Gousto are a big hit among foodies and Craft Gin Club, Naked Wines and Apostle Coffee offer customers a steady flow of something to wash it all down with.
In fact, brands from almost every sector want a piece of the subscription box pie – and for good reason. Here are just some of the benefits:
- Recurring revenue – predict your monthly income more easily, streamline production processes accordingly, and scale up progressively
- Customer retention – you’ll help customers discover suitable new products and save them the time and hassle of looking. With all that added value, chances are they’ll stick around …and the longer a customer subscribes, the higher their overall spend and lifetime value
- Link sales opportunities – the insights you’ll receive from purchase history and feedback mechanisms will help you upsell related products in your range
- Collaboration potential – join forces with other brands that share your values and target audience and enjoy a mutually beneficial boost in fan numbers
- Investor interest – your growing subscriber base might attract attention from investors and larger companies looking to acquire new businesses
Quality subscription box fulfilment is crucial
Timely delivery and high-quality, beautiful packaging are essential to the success of subscription boxes. As we’ve explained, part of the appeal for customers is that happy day (they will be waiting!) when their box lands on the doorstep and they can relish in the unboxing experience and share it with their social media followers.
We’ll work closely with you to understand your brand and customers, advising on packaging options from both a style and practical point of view. For example, if your subscription box contains liquid items alongside fabric, or products with strong odours, we can make sure everything is appropriately packed together - with a little extra flair in the presentation too, of course. We can even include handwritten notes if you require.
Our warehouse management system integrates with all major eCommerce platforms, so you’ll have full real-time access to information about orders and stock levels. Our team has the flexibility to adapt box contents depending on stock availability and customer preferences.
Sign up for success. Talk to Fullers Logistics to find out more about how our fulfilment experts and streamlined processes can ensure your subscription box venture is a big hit. To get in touch, fill out our contact form.