Top Tips for Making the Most of the Subscription Box Boom

It seems there are subscription boxes for everything these days. Whether it’s watches or pet food, alcohol or clothing, there’s something for everyone and now it’s your turn to make the most of the subscription box boom.

First of all, let’s have a look at what we’re talking about when we say ‘subscription boxes’.

Ideal for any online business that sells fast moving consumer goods (FMCG) or items that people might collect, a subscription box gives customers a chance to sign up to whatever catches their eye and make regular payments in return for a regular delivery of that product.

This works really well with consumer goods like food and drink, as these are often purchased in a weekly shop at a local supermarket, but online subscriptions give a customer access to more exciting options, hard to find products, and even dishes you’ll only find in a restaurant.

It’s not just food and drink who are making the most of subscription culture though.

Online clothing stores, for example, are giving people a chance to ‘try before they buy’ for a small fee, and even brand-new watches, sunglasses, jewellery, and other accessories can be delivered regularly to your door.

In fact, the subscription box market is booming, and it doesn’t show any signs of slowing down.

How big is the subscription box market?

Market research company IMARC found the global subscription box market reached a value of US$ 22.7 Billion in 2021 and they expect it to reach US$ 65.0 Billion by 2027.

In the UK alone, Barclaycard found that despite the easing of COVID lockdown restrictions, the UK remains a nation of ‘Super Subscribers’, with those signed-up spending £620 per year on subscriptions.

That’s a growth of 12%, from £552 in the same period 12 months before.

According to the Barclaycard Payments research, Brits are most likely to take out subscription services for products in the following categories:

Those are figures you can’t ignore, so how can your company make the most of the subscription box boom?

How can you join in?

First of all, take a look at your business and the products you sell. Be honest and decide if what you sell could be a good fit in the market. You may need to do some of your own research too.

Ask your current customers if they would be interested in a subscription service, and what they’d be prepared to pay and what they’d expect in return.

Then you’ll need to research packaging boxes.

There are hundreds of options here and a packaging company may have an off the shelf solution or be able to design bespoke packaging that helps your product stand out when it is pushed through a customer’s letter box.

Find out how you can make it easier for your customers to also have greater control of their subscriptions, so they don’t feel trapped if they change their mind or their circumstances change.

This is key as research has found that companies will grow faster if they give their customers greater control over subscriptions.

Once that’s all done and you have your subscription boxes, prices, and ordering processes sorted, you’ll need to decide how you’ll manage the delivery logistics.

Unlike before, you’re not going to be picking and packing ad-hoc as ordered come in. Your monthly subscription customers are going to expect their orders to be packed, shipped, and delivered at the same time each time a new box is due.

You’re now going to be splitting your delivery logistics into two. One stream will be ad-hoc orders, which may have high demand at various points in the year, and the other will be a regular (hopefully increasing) number of orders to be shipped on the same day each month.

And they must not get in the way of each other.

Delivery solutions for the subscription box boom

There are two main options for managing your subscription box deliveries.

One: Store, pick, pack and ship yourself inhouse. Make sure on the days needed you have the staff in to manage the logistic, boxes packed properly, get the address labels printed, pay for any postage or customs tax (if shipping overseas), all ready to be picked up by a courier like Asendia at the agreed time.

This is certainly a good option so long as you have the staff, space, time and your courier is aware of the days when subscriptions are going out, so they can make sure they give you the best service you expect.

They may also be able to give you a better rate if they know one day in the month is going to be busier than the rest.

Two: Instruct a third-party delivery logistics partner to store, pick, pack, and ship for you.

This is particularly helpful as companies like Asendia have fulfilment centres (warehouses) where your boxes and products can be stored carefully and then simply picked, packed and shipped when needed.

Plus, the pricing will be pre-agreed so there are no surprises when you get your invoice.

Plus, with your ecommerce systems easily integrated with Asendia’s, any new subscribers or changes to current subscribers can be updated instantly.

You then have the time to look after all other aspects of your business, so it continues to grow.

Whatever way you decide to begin a subscription box service, you’ll need a courier who can make sure your customers are given the best possible service.

You’ll need to find out how their returns processes work, how they deal with unforeseen problems, how their B2B customer service can support you if there are any issues, and what their last mile logistics look like.

You may also want to find out if they offer domestic shipping or if they also ship internationally, which would broaden the global reach that your e-commerce brand can cover. Spoiler: Asendia can do both.

To find out more about how Asendia can help you make the most of the subscription box boom to help grow your business and keep your customers coming back for more, get in touch.