Subscription Box Companies: How They Have Us Hooked

Don’t you love getting packages in the mail? Whether it’s a shirt you ordered from your favorite store, or a surprise care package from a loved one, or maybe even a package from a subscription box company...

We love getting packages in the mail too, especially if it’s from a subscription box company. We can’t get enough of the surprise factor, the delight of opening the colorful shipping box, and getting to the items it holds.

We’re not the only ones who love the thrill of a subscription box. A study from McKinsey & Company shows that the subscription e-commerce market is worth about $10 billion. It grew more than 100% between 2013 and 2018 and has generated over $2.6 billion in sales. These are all impressive stats for a market that barely existed before 2010.

Introduction to Subscription Boxes

Subscription boxes have become a popular way for consumers to discover new products and experience the convenience of having items delivered directly to their doorstep. With a wide range of options available, from monthly subscription boxes to limited edition boxes, there’s something for everyone. Whether you’re looking for a curated box of beauty products, a themed box of snacks, or a loot crate of gaming gear, subscription boxes offer a fun and exciting way to shop. Many services, such as Stitch Fix, offer a styling fee and a personalized box based on a style quiz, making it easy to find products that fit your needs and preferences. The convenience of having a curated selection of items delivered to your door each month is a major draw for busy individuals and families alike.

How Did Subscription Box Companies Start?

Forbes credits beauty and grooming company Birchbox for setting the subscription box trend in motion back in 2010. The idea was simple. Subscribers pay $10 a month and receive monthly boxes filled with samples of high-end beauty and grooming products like moisturizers and spot-brightening serums to mascara and illuminators. The draw was that, for a low set price each month, you’d get a surprise box of products valued at $100 or more.

Since then, Birchbox has grown to serve millions of customers and operates in six countries. Today, it is estimated that more than 3,500 other subscription box companies have claimed a share of the subscription box market. These companies offer a variety of products, including unique flavors, that cater to different tastes and preferences. Receiving a subscription box in the mail adds to the overall excitement.

Why Do Subscription Box Companies Work?

The same study by McKinsey & Company categorizes subscription box companies into three categories: replenishment, curation, and access. These buckets are why the subscription model works so well at drawing in customers. Customers can look forward to future boxes and the evolving nature of their preferences. Let’s break them down.

Replenishment

Replenishment is about convenience, with many services offering regular deliveries every week. Some services even provide the option to receive deliveries every few weeks, catering to different schedules and needs. Who wants to remember to buy razors every month? Subscription box companies that make shopping a convenience for their customers win big.

Access

Access is about paying a premium to get a discount or service. This doesn’t take up much space on the subscription box company market, but the quality of the products offered can significantly enhance the overall value and satisfaction for customers.

Curation

The third and most popular segment of the subscription box market is the curation bucket. This is the kind of subscription box we talked about at the beginning of this article. People love the feeling of opening a package on a special day. With subscription boxes bringing a monthly surprise your way, that feeling is attainable more than just once a year. Many boxes include featured products that are especially noteworthy, enhancing the experience and satisfaction.

With each of these buckets comes one more secret ingredient that makes subscription box companies successful: personalization.

Most companies allow their customers to tailor each monthly box to their distinct tastes and needs. These boxes often include self-care items designed to enhance well-being and mindfulness. In that same study by McKinsey & Company, researchers found that 28% of subscribers say having a personalized experience is the most crucial reason they continue their subscriptions. It all adds to that Christmas morning feeling.

How Do Subscription Box Companies Find Customers?

A study from Hitwise shows that the fastest-growing marketing method that gets customers hooked on subscription boxes is affiliate marketing, also known as influencer marketing. If you think about it, what’s the most likely channel you first saw a subscription box company like Blue Apron, Hello Fresh or FabFitFun? Was it a social media channel like Instagram or Facebook?

When someone with thousands of followers posts a video of themselves opening a subscription box for the first time, also known as an unboxing video, it affects viewers. It makes them excited about the product. The anticipation and waiting for the next box add to the overall experience.

Target Audience

The target audience for subscription boxes is diverse and widespread. Busy parents, for example, may appreciate the convenience of a monthly subscription box that delivers healthy snacks or kids’ activities. Others may enjoy the thrill of receiving a surprise box of goodies every month. Subscription boxes are also a great gift idea, allowing you to treat friends and family to a unique and exciting experience. With many services offering free shipping and flexible schedules, it’s easy to find a subscription box that fits your needs and budget. Additionally, many companies offer a styling fee and a personalized box, making it easy to find products that fit your style and preferences. Whether you’re looking for a fun way to discover new products or a thoughtful gift for a loved one, subscription boxes offer a convenient and enjoyable solution.

How Can I Start My Own Subscription Box Company?

If you’re thinking of going into the subscription box field but can’t afford influencers, don’t worry. The study from Hitwise shows channels like email, social media, and search still work to attract customers. But first, you’ll have to start your company. Here are a few helpful pointers.

1. Pick Your Subscription Box Company Bucket

Decide whether you want your subscription box to fall into the replenishment, access, or curation bucket. Then, decide what kind of products you wish to offer, such as recipes or unique items. Including a recipe card with each meal can be a valuable addition that simplifies the cooking process for your customers. The more value your box adds to your customers’ lives, the more successful your subscription box can be.

Adding value doesn’t necessarily mean you’ll need to source the most expensive products. Your value item can be something as small as a handwritten note.

2. Choose Your Packaging

Like we mentioned above, the unboxing experience is part of the thrill of subscription boxes. A well-designed box packed with a variety of items helps to enhance this excitement. The anticipation and waiting for the next box only add to the overall experience. You’ll want your box to match your brand. A well-designed box will garner shares on social media, helping to spread the word about your company.

Branded packaging doesn’t have to be complicated. Consider printing your company logo on your shipping boxes with Pratt.com. Just upload your logo, choose your printing upgrades, and check out.

3. Build Your Online Store

Once you have your product squared away, you’ll be ready to launch your online presence and make it easy for customers to purchase your subscription boxes. Several platforms, such as Shopify, exist that can help you get your online store up and running in no time and with no coding experience needed.

Convenience and Surprise!

Subscription boxes have transformed the shopping experience by combining convenience, surprise, and personalization. These are elements that customers absolutely love. From curated selections of beauty products to themed boxes featuring unique flavors, these monthly subscription boxes offer a fun way to discover new items and enjoy treats delivered straight to your door.

As the industry continues to expand, it's evident that subscription boxes are here to stay, catering to busy parents, gift-givers, and curious shoppers. If you're inspired to start your own subscription box business, consider using Pratt.com to design and print your packaging. With our expertise, you can create eye-catching boxes that enhance the unboxing experience and help your brand stand out.