Your eCommerce Guide to Subscription Box Fulfillment: Everything You Need to Know

Subscription boxes and services are all the rage. As you go about your daily life on the internet, browse around the best subscription boxes available on the market. Chances are, you will get overwhelming results for recurring revenue-based businesses. If you’re thinking about applying the subscription box model to your eCommerce business, here’s everything you need to know from our subscription box fulfillment experts.

Subscription Box Statistics

To give you some insight into this growing eCommerce trend, here are some statistics about subscription boxes and services:

• The subscription box market was valued at $10 billion in 2019
• Niche products such as location-specific and meal kits account for 20% of the overall US commerce market
• Big brands are jumping on the subscription box bandwagon
• The eCommerce subscription box has generated the U.S. over $2.6 billion

This proves that eCommerce subscription services aren't just a fad. The industry keeps getting bigger each passing day and there is no sign it will slow down anytime soon.

What Is a Subscription Box?

In a subscription box model, products are delivered regularly (often monthly). Mostly, these products are picked based on a client's personal preferences. Practically, anything you think of can be delivered as a subscription, from makeup to electronics. 

This model benefits both the business involved and its customers. Online retailers are assured of a predictable and steady revenue stream. Customers, on the other hand, don't need to scramble to place orders. Once they have subscribed, their products are delivered every month or depending on the frequency selected.

What Option Is Right for Your Online Business?

Understanding your niche can help you decide which option will work for you. So, consider taking a closer look at the current state of your business and see what model will make the most sense when implemented. 

For example, if you sell furniture, it may be challenging to take either route. But there is still a way you can benefit from subscription boxes. You can expand your catalog to include products like knickknacks, throw pillows, upholstery cleaners, and any other products customers are likely to need often. You need to be open-minded if you want to get the most out of the subscription box industry. 

Designing Your eCommerce Subscription Business Model

Once you have finer details about your niche, the next step is coming up with a subscription business model that works for you. While it is okay to borrow ideas from other players in the industry, try your best to create your own subscription model that is unique. This is because there are no two businesses that are the same, no matter how similar they may appear. Some of the questions you may want to consider asking yourself when designing an eCommerce subscription model include:

Who Needs Your Subscription Box?

You need to find out if there are customers who will subscribe before getting started. Only proceed if there is a sizable market.

What Is Your Subscription Cycle?

Ensuring your customers get their products on time may seem like an easy task, but it isn't. It gets even more complicated if you don't have an arrangement with a reliable shipping and order fulfillment company. For that reason, you want to come up with a subscription cycle that will leave your customers satisfied. You can experiment with a few products before going full-throttle on the implementation of your subscription model.

Who Are Your Competitors?

Pick a few things from your competitors that can help you get started on the right foot. Find time to learn what your competitors are doing and see what you can do differently to gain a competitive edge. 

Why Brands Are Considering This Business Model

There are numerous reasons why brands are increasingly investing in offering a subscription order option. Here are four reasons why:

• Recurring Revenue: When customers are subscribed, there is a guaranteed revenue at the end of the day. Avoid giving them a reason to unsubscribe to continue earning recurring revenue.
• Improved Order Stocking and Management: You already know your buyers' demand month after month. That way, you will only maintain the required amount of stock and manage your inventory, which helps lower warehousing costs.
• Offers Shoppers Great Deals Leading to Increased Subscriptions: customers love deals that help them spend less for the same items. With subscription boxes, you can offer them an upfront discount if they commit to the subscription. Your customers get a good deal if they commit to paying annually instead of monthly.

How a 3PL Can Ensure Smooth and Efficient Delivery of eCommerce Orders

Subscription box fulfillment services can make or break your eCommerce subscription box business. As such, it is important to think of the convenience that comes with engaging a reliable 3PL order fulfillment company to fill recurring subscription orders that must be shipped regularly. 

Rakuten Super Logistics offers fast and affordable subscription box fulfillment for eCommerce businesses. They can help in ensuring the recurring subscription orders arrive at the desired destination on time, every time. Request a quote today to get a clear view of how you can leverage lower shipping costs and fast delivery.