Subscription box commerce is a hot commodity these days. Just think about the services you’re already subscribed to: Netflix, Amazon Prime, Spotify, Hulu, or YouTube TV, etc. You know how easy and convenient it is to have customized content served up to you. Now think of getting a box delivered every month, with a curated pair of socks, a classic vinyl album, or the latest fragrance. Therein lies the appeal of the subscription box – which then requires the right kind of subscription box fulfillment to get those orders out the door each month, exactly right.
And think of the growing roll call of subscription box companies that have seen hyper growth and become recognizable brands, from BarkBox to Dollar Shave Club and Harry’s, HelloFresh, Loot Crate, MeUndies, Blue Apron, Stitch Fix, and ButcherBox. One of the main benefits is creation of a more predictable revenue stream from monthly subscription fees.
The subscription box market worldwide is expected to see year-over-year growth of 17.2% in 2024, from $31.40 billion to $36.80 billion, according to Research and Markets, hitting an impressive $71.77 billion by 2028. So there’s no doubt the opportunity and the demand are there.
A huge part of the attraction for subscribers happens when the monthly order drops on their doorsteps and the “unboxing experience” happens. Much has been written and said about the marketing power of a “wow” unboxing experience. Friends eagerly share videos of the actual unboxing with their followers on Instagram, TikTok, and YouTube, often with viral results – which is absolute gold for the brand.
For shoppers, it’s almost like Christmas every month, with massive anticipation followed by realization when the new box is opened. “This anticipation taps into the fundamental human desire for surprises and delights, triggering a positive emotional response that strengthens the bond between the consumer and the brand,” wrote Vipul Yadav in Medium.
Further, being a subscriber creates a sense of exclusivity – at scale! – and a strong emotional connection and identification with the brand. According to research from McKinsey, the majority of subscribers are middle-income urbanites from 25 to 44 years old, and 60% of them are women. The median number of subscriptions held by individuals is two, but 35% of respondents have three or more.
According to data from Google, between Sept. 1 and Nov. 1, 2023, there was a 30% increase in the use of product-related keywords such as “reviews,” “specifications,” and “unboxing.” Again, the potential is definitely there. But a lot of thinking and strategy go into crafting a memorable unboxing experience for subscribers.
Beyond the actual contents themselves, the importance of creating visually appealing packaging cannot be overstated. Investing in elements like packaging design and materials is well worth it – and will pay dividends in terms of customer satisfaction and brand loyalty. At the same time, don’t skimp on the branding aspect of the packaging.
And don’t let the term “subscription box” put you in, well, a box! Many subscription sellers use packaging such as padded mailers or even envelopes, depending on the product and its dimensions. This is an area where an expert 3PL partner like ShipBots can add a lot of value through consultation and the actual subscription box fulfillment itself.
3D digital printing is becoming the preferred method for packaging graphics, or you could start as simple as a standard box with branded stickers. This post from Cratejoy has a lot of helpful tips.
Customization and personalization are two major elements of successful subscription box offerings. Subscribers love any personalized elements that add to the experience.
Sunrise Boxes, a maker of boxes for subscription sellers, said boxes can be designed with custom printing styles and colors based on preferences the subscriber lists at sign-up. Or someone who prioritizes sustainability can receive a box made with recycled content, or one that’s reusable.
Personalization can also come in the form of a note or welcome message included in the packaging, to add a sense of connection and exclusivity. Sellers can include things such as product information, tips or recipes that add value and enhance the unboxing experience.
While not exactly a personalization element, adding collectible items, such as a limited edition series, encourages subscription renewal and helps build anticipation for the arrival of next month’s box. Discount coupons for future purchases, especially at the end of the subscription cycle, are another way to foster greater brand loyalty.
As the contents of a subscription box are revealed, it represents a moment of anticipation and delight as subscribers eagerly discover this month’s curated items tailored to their interests. This unveiling fosters a sense of excitement and satisfaction with each unboxing experience.
For this reason, care and attention must be given to how items are presented and arranged within a box. Put yourself in their shoes. What would “wow” you? What is the most aesthetically pleasing arrangement? What kinds of elements should be included (tissue paper, foil, etc.) that will heighten the “surprise and delight” factor?
Gamification and interactivity have become a hugely popular way of engaging with eCommerce shoppers, many of whom are already immersed in smartphone or computer-based games.
Designing packaging with interactive features, such as pop-up elements, puzzles, or hidden compartments, help make the unboxing more engaging and memorable. You can include “mystery items” or hidden surprises, adding an element of excitement and encouraging subscribers to explore every component.
Consider adding QR codes or augmented reality (AR) experiences that can unlock additional content, exclusive videos, or interactive games tied to the product for more of a wow that can lead to sharing.
Speaking of that, always encourage social sharing, including putting out challenges to subscribers – another aspect of gamification! Create contests or challenges with unique hashtags, fostering greater community engagement and turning customers into brand advocates.
Subscription box fulfillment is a highly specialized area that involves a different kind of cadence, order flow, inventory management and pack-out process – including kitting – than the traditional eCommerce model. For this reason, it’s important to seek out a partner with expertise and a track record of success with subscription box companies. ShipBots syncs with your online store, receives shipments into its fulfillment center network, tracks your products via barcode, and provides rapid order processing.
As noted above, sustainability and eco-friendly practices are a huge winner with many of today’s green-conscious consumers, especially the younger generations. With this in mind, consider using biodegradable or recyclable materials in your packaging elements. You can also highlight the ethical sourcing of your product, and the sustainability of the packaging, in a fact sheet included with the subscription box.
Collaborating with social media influencers and popular brands on exclusive offerings or early releases is another way to generate buzz and excitement around your subscription offering. This could include releasing limited edition, themed boxes tying into the partnership, making them more of a must-have item that will be shared widely, creating a halo effect.
To encourage the creation of user-generated content (UGC), Shopify seller HighPeak Co. created a TikTok playlist of UGC, which includes unboxing videos. They play up the fact that subscriber content is featured on the channel, playing to their desire for attention and recognition by fellow brand fans.
Among many other genius moves, Dollar Shave Club over-delivers in terms of product information on its website and in promo messaging, including total shipping cost and opt-out boxes. This boosts shoppers’ confidence in the brand while cutting down on unnecessary touches with customer service.
Rocksbox, seller of a jewelry rental subscription service, offers personalized styling advice as well as exclusive discounts and promotions and partnerships with major brands such as Zales and Kate Spade. The subscription items are curated based on results of a style quiz at sign-up.
Know your audience and tailor the experience: An extra effort in market research on the front end is key to success. Build audience personas and become familiar with what excites them, what they value, and what will foster engagement and sharing.
Employ continuous feedback and iterate: Encourage subscribers to let you know what they like and don’t like in your monthly offerings. Use that to feed into future product, marketing, and packaging decisions.
Invest in quality materials and design: Don’t skimp on your product packaging. That will be an immediate turnoff for many customers. Remember, it’s acting as your brand ambassador; let it represent you well.
Stay true to your brand identity and values: Remember the ideals and brand story that attracted subscribers in the first place. They value authenticity and transparency and want the goods and services they buy to reflect what’s important to them.
As you can see, subscription box commerce is a massive, growing opportunity for brands to expand and tap into a strong consumer desire for a monthly dose of “surprise and delight” on their porch. The sense of anticipation is in fact the modern equivalent of the arrival of the Wells Fargo wagon!
Working with ShipBots for their subscription box fulfillment needs, brands have seen some impressive results: a 97% increase in average order value (AOV); a 13% cost savings for their e-stores; an 18% decrease in cart abandonment; and 120 people hours per week saved. To find out more on how ShipBots can efficiently handle your subscription box fulfillment and help you bring the “wow” of unboxing, get a free quote today.
