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Boxing clever: the rise and rise of ecommerce subscriptions

Ecommerce subscription

With ecommerce evolving rapidly, customers are continually adopting new online shopping behaviours. Due to the flexibility, convenience, and savings they offer, growing numbers are embracing ecommerce subscription models. For retailers to take advantage, it’s critical to deliver convenience from start to finish. 

Subscription boxes are not a new phenomenon, but they’re proving to be more popular than ever. The trend plays into the hands of urban, tech-savvy consumers, who use mobiles to shop, and are looking for a convenient, hassle-free experience. 

The pandemic sparked a boom in interest as auto-replenishment services grew at an exponential rate. This resulted in a UK market worth £414 million in 2021, which is forecast to reach £1.89 billion by 2025. 

Today there’s a wide variety of ecommerce subscriptions, with notable examples including pets, meal kits, cosmetics, beauty and grooming, books, clothing, and alcoholic beverages, to name a few. These businesses can keep prices low by cutting out the middleman, and selling goods directly from suppliers at discounted prices. 

Part of the allure of subscription boxes is that buyers can try products they might not have otherwise, with far less risk. Greater exposure to a wider range of new products allows them to choose products which are optimal for their preferences, and have them delivered straight to the door on a recurring basis. With no markup, subscription businesses compete on price, putting kits together at a certain price point, and experimenting to see what works. 

This approach offers customers a heightened sense of fun and personalisation, as there is a certain exclusivity in having products curated especially for them. It also allows brands to create unique interactions, and build stronger relationships with their customers. 

A major attraction for retailers is the ability to cultivate recurring revenues, and quickly build a base of loyal customers. In terms of knowing exactly which items need to be replenished, how often, and in what quantity, subscriptions give retailers certainty.  As a result, we are seeing lots of experimentation with direct-to-consumer models, which won’t end anytime soon. 

As attractive as ecommerce subscription models are for retailers, they do bring new warehousing and distribution challenges. With boxes containing a variety of items, advanced pick and pack, and accurate and speedy label production is vital. 

With varying box weights and dimensions, being able to set label parameters easily so you choose the right carrier service, and not overpay on delivery costs, is a must. 

A cautionary note is that subscriptions can be cancelled as quickly as they can be set up. As the market continues to heat up and new entrants appear, providing a superior customer experience is even more crucial. 

When it comes to food, perishable items and certain cosmetics, there is an absolute need for delivery to be fast. With an experiential element to these purchases, the last mile is very important, and it’s essential to have the right mix of carriers and delivery services. Expanding internationally to open up new markets also requires having multiple carriers in each market. 

There is clear demand from busy shoppers to have items delivered hassle-free which necessitates a reliable, predictable and cost-effective service. Find out how Scurri helped subscription pet meal service Butternut Box focus on getting delivery right here

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