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About Subscription Boxes
Subscription boxes are a recurring delivery of niche products as part of a marketing strategy and a method of product distribution. They will subscript and target a wide range of customers and provide regular shipments of curated items to these customers to cater to their a variety of specific needs and interests. Subscriptions vary in both cost and frequency, making them more accessible to a greater range of customers with different socioeconomic backgrounds. Subscription boxes tend to range from $10 to $100.
And dropshipping with subscription box is to combine the dropshipping model and the subscription model. Some of the earlier forms of subscriptions were things like magazines and newspapers. These days, consumers can subscribe to their favorite products, or they can even pay a monthly fee to get a mix of items that they won’t know until they arrive. The mystery aspect for curated boxes has become a big selling point.
And if you want to dropshipping with subscription box, you would just need to find a dropshipper that selling everything you want to ship in the subscription box. Or you can also be a dropshipper yourself and find the customers that like and need subscription box, and give the relative information such as frequency, products, package to your supplier. By these way, the customer will receive one package regularly. You would also need to message ahead of time to see if he doesn't mind adding some customer packaging / whatever else you needed. And you have to decide what kind of products you should offer, how frequently they’re sent out, how much to charge, and a few other things.
Subscription boxes are one of the hottest trends disrupting e-commerce. The industry has grown a whopping 3,000 percent in the last three years, with tens of millions of Americans now paying monthly for deliveries of everything from pet goodies to meal kits to clothes to beauty supplies. It is estimated that there are 400 to 600 different kinds of subscription boxes in the United States alone and more overseas.
It is obvious that subscription boxes are becoming more popular as more options arise. A recent study by Crimson Hexagon, which analyzed social media conversations surrounding the major industry players, uncovered why these subscription boxes have become so popular:
- Sense of mystery: Consumers discover products they might not have otherwise. This allows customers to try products and brands risk-free. The increased exposure to new products helps customers discover optimal products for their preferences and needs.
- The element of surprise and excitement: Many said receiving a new box in the mail , no matter what the product category, in fact it is unpredictable, “made them feel like it was Christmas morning.”
- Curation: People posted about the joy they feel receiving a box of items tailored toward their tastes. For the most part, they are confident that subscription boxes are exposing them to only high-quality products vetted by experts.
- Perfect solution to make choice: According to “The Paradox of Choice: Why More is Less”, in a world of overwhelming choice, consumers can get stuck when it comes to selecting the items they want. Subscription boxes are the perfect solution to indecisiveness and regret as they curate products according to a customer’s personal preferences, simplifying the process.
- Convenience: Subscription boxes give consumers back time that would otherwise be spent trying to the discern the difference between similar items in stores or online. The classic benefit of e-commerce which is not having to leave the house plays big here as well.
However, there are critics of subscription boxes that have examined the environmental impact of subscription boxes. Shipping goods over long distances require energy, however, the energy used to send subscription boxes is not always more than purchasing products locally. Contents in subscription boxes may not always appeal to the subscriber. This leads to a waste of product and transportation costs. This affects the environment in the form of energy needs to get product to the customer, the natural resources to make the product, and the disposal costs to get rid of the product. Especially because some of the products that are sent can be purchased.
Top 5 Subscription Box Companies
1.Birchbox
Receive high-end beauty samples that allow you to discover new products. Birchbox established in 2010 is an online monthly subscription service. They have been chosen for you based on your personal profile. It includes makeup, skincare items, and perfume samples or other beauty related products. The cost is about $10 each month. The company has sold millions of boxes through their subscription service so far, and have since added on BirchboxMan. They have their headquarters in New York City, and they also have operations in Spain, the United Kingdom, France, and Belgium.
The website works well by the following four steps:
Fill Out Your Profile: Tell them about your beauty preferences and they’ll use them to customize your box.
Explore Your Box: Your monthly beauty treats will be a mix of prestige and niche brands. Discover new favorites and see what works for you.
Buy What You Love: Purchase full-size versions of your fave samples (they ship free!). Get $1 back in Loyalty Points for every $10 you spend in our Shop.
Better Your Box: You can choose one of your samples each month starting with your second box. Plus, review products so they learn more about you.
2. Bestowed
Bestowed (formerly Klutchbox) has fitness, health, and wellness products including nutrition bars, workout DVDs and various juices. If you participate on the website, you have the chance to earn points towards full-size versions of their samples. You also have the opportunity to earn more monthly boxes. If you pay by the month, it is about $25 and if you pay for multiple months at a time there is a discount. Bestowed only ships within the United States. They have an estimated revenue of $20 million.
3.BarkBox
BarkBox is a great option for people who would like to get items in the mail every month for their dogs. It is a monthly subscription service providing dog products, services, and experiences. Choose your dog’s size, and you will receive specially selected items such as treats, shampoo, bones and much more. Part of the proceeds from sales are given to local rescues and shelters. The cost is about $20/month for BarkBox. The company is based in the United States and is shipped all throughout the United States and Canada. BarkBox has about 200,000 monthly subscribers and an estimated revenue of $3 million.
4. Loot Crate
Loot Crate is a video game merchandise company that started out selling one themed box of pop culture items per month since 2012. More recently, they have added on various other subscriptions, including Loot Anime, Loot Gaming, and Loot Pets. They ship to customers around the world, though they are based in the United States. As of the summer of 2014, there were well over 200,000 subscribers each month, though there are reports of growth of 20% per month since then. The cost is $16/month for the basic Loot Crate. Prices vary for each of the boxes.
5.Graze Box
Graze Box comes with four delicious and healthy snacks, including chips, salsa, dried fruit and more. You can select “love, like, try, or trash” so that you only are going to receive items that you will enjoy. There are over 200 different snacks, meaning there are millions of combinations for snack subscription boxes. The company has its headquarters in England. The company distributes thousands of snack boxes per day across the UK. It expanded operations to include the United States in 2013, launching snacks into US retailers in 2016. Currently, Graze boxes can only be shipped within the United States. The eight snack variety box costs $14. The company has an estimated revenue of $69 million.
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