British consumers are spending on average over £2 billion a year on monthly delivery subscription packages even though one in five say they don’t use the services they’ve signed up for.
New research from Parcelhub’s parent company Whistl revealed that although there are several reasons behind people opting in to such services, convenience (45%) and value for money (60%) were two of the key drivers, although almost 20% said they signed up purely for the novelty of receiving items through the post.
From discounted delivery and art and craft supplies to snack-sized health foods and curated beauty boxes, subscriptions are an increasingly common way for consumers to buy services online.
According to Whistl’s survey, Amazon Prime is the most favoured subscription package with 61.4% of participants saying that they had signed up to the service. Other popular services include healthy desk-snack company Graze (12.3%), nextunlimited (9.7%), ASOS Premier (8.8%), Pact Coffee (8.5%) and beauty brand Glossybox (7.8%).
It’s great news for retailers. Almost half of participants admitted buying products they wouldn’t have otherwise bought if they hadn’t signed up for the service. It’s also good news for consumers who can make significant savings. For instance Amazon Prime alone can save those who subscribe up to £165 per year.
Demand is high for more options when it comes to delivery subscriptions, with those surveyed stating their wish for coffee pods, vape liquid, fashion accessories (scarves and handbags) and even Disney related items on monthly subscription.
Melanie Darvall, Director of Marketing and Communications at Whistl, said: “It’s great to see the rise in popularity of monthly subscription services and how they’re benefiting both businesses and subscribers.
“It’s not surprising that value for money and convenience are hugely important to British consumers, just as quality and savings through discounts are. Getting this balance right is essential if you’re to secure a loyal customer base that is happy to spend money on products that are not included in the monthly ‘taster’ service.”
Who likes what?
The average spend on delivery subscriptions between men and women spend is around £60 a year, but it would seem that men are the biggest spenders overall. In fact, 1.5m British men spend over £300 a year on subscriptions.
Those in the 45-54 age group are most likely to spend over £300 a year on subscriptions. While one in three people in the 25-34 age group refuse to shop with retailers that they don’t have a subscription with – suggesting perhaps that subscriptions are a good way of ensuring customer loyalty.
The cities that subscribe the most
The biggest fans of subscriptions are the residents of Birmingham, spending on average £18m a year. One in three residents of this city are even signed up to subscription services that they no longer use.
The inhabitants of Sheffield are perhaps the most health conscious, with 25% subscribing to Graze Box and almost 10% signed up to Vegan Kind. Liverpudlians favour floral subscription services while almost a fifth (17.8%) of those in Cardiff enjoy a gin subscription box.