Subscription Box Shipping: Delight Your Customers with Every Delivery

The subscription box market is booming, offering a unique opportunity for eCommerce businesses to cultivate customer loyalty and generate recurring revenue.

We’ve explored the growth of the UK subscription market and outlined how to provide memorable unboxing experiences while optimising your subscription box shipping strategy.

In this article we cover:

• The State of the UK Subscription Market
• Why Subscription Boxes?
• How to Create Memorable Subscription Box Experiences
• Subscription Box Shipping: Key Considerations
• Why Parcelhub for Subscription Box Shipping?

The State of the UK Subscription Market

The appetite amongst UK consumers for subscription-based services remains strong. However, the market finds itself at a crossroads.

On the one hand, this buoyant segment is thriving. Brits spend £20bn a year on subscription services, including £2bn a year on subscription boxes. This amounts to four in five UK adults signed-up to at least one subscription with the £500 average yearly spend on subscription services a healthy total.

Download the State of UK Subscriptions Factsheet

However, subscription retailers are continually having to navigate economic headwinds within a fiercely competitive landscape.

The cost-of-living, subscription fatigue, customer churn, and demands for more flexibility are some of the issues weighing heavily on the marketplace.

This places even more emphasis on how retailers manage their subscription offering while juggling costs. Managing eCommerce logistics is a crucial part of the puzzle and we’ll cover more on that later.

Why Subscription Boxes?

From beauty boxes to books, or fizzy drinks to flowers, the options for building a subscription-based business are wide-ranging.

As well as the potential to grab hold of a niche, subscription boxes have mutual benefits for both eCommerce retailers and consumers.

Online retailers can enjoy:

• Recurring Revenue: Subscription models offer predictable income, making financial planning and growth projections easier.
• Stronger Customer Relationships: Subscriptions foster ongoing engagement with customers, allowing businesses to build a loyal community.
• Improved Forecasting: Regular orders allow for better demand forecasting and inventory management.
• Reduced Marketing Costs: Retaining existing subscribers is less expensive than acquiring new customers.

Meanwhile, here are some benefits subscription boxes offer to consumers:

• Convenience: Subscription boxes provide a convenient way to get products delivered regularly without having to go to in-store. Customers appreciate the "set it and forget it" option of recurring orders, and many find it particularly helpful for essential items that need regular replacement, like razors, toothbrushes, and personal care products.
• Cost Savings: Many subscription services offer discounts for customers who commit to a subscription rather than purchasing items individually. This "subscribe and save" model can be appealing to customers looking for deals on products they use regularly.
• Personalisation: Subscription boxes can cater to specific interests and preferences, providing curated selections of products tailored to individual needs. Customers can enjoy the experience of receiving personalised boxes filled with items they are likely to enjoy.
• Discovery and Surprise: Subscription boxes offer a fun and engaging way to discover new products and brands that customers might not have otherwise encountered. The element of surprise and the anticipation of receiving a box each month can create a delightful experience for consumers.
• Community Building: Many subscription boxes foster a sense of community among their subscribers through social media engagement, exclusive content, and events. This can provide a sense of belonging and create a shared experience for customers who share similar interests.
• Gifting Made Easy: Subscription boxes can make excellent gifts, as they offer a unique and thoughtful present that keeps on giving. Customers can easily give the gift of a curated experience to friends and family members.
• Simpler Decision Making: By providing a curated selection of products, subscription boxes can help reduce the overwhelm of having to choose from a wide range of options. This can be particularly appealing to busy customers who appreciate the convenience of having someone else make the decisions for them.

How do consumers feel about subscriptions? UK trends and attitudes towards subscriptions are broadly matched worldwide. Convenience and price top the list of reasons to subscribe. Meanwhile, research by PwC also highlights the desirability of personalisation and community.

How to Create Memorable Subscription Box Experiences

Building a loyal following involves several moving parts. From the creation of your subscription box to checkout and delivery, each step of the journey must be seamless. This includes packaging, parcel delivery, and building a buzz around your offering.

Branding and Marketing 

• Promote your subscription box using high-quality photography and videography that showcases the unboxing experience and highlights the value of your products.
• Leverage social media platforms like TikTok, Instagram, Facebook, and Pinterest to create engaging content that highlights the excitement of receiving and unboxing your products. 
• Identify highly engaged customers and develop incentivised influencer programmes to leverage online followings and create connections with more potential subscribers.

Delivering on Time, Every Time

• Clearly communicate your delivery schedule to subscribers, including cut-off dates, shipping windows, and expected delivery dates.
• Provide tracking information so subscribers can monitor their package's journey and anticipate its arrival.
• Choose reliable couriers with a proven track record of on-time delivery.

Personalisation 

• Where possible, allow subscribers to personalise their boxes by choosing product preferences, sizes, or variations. This shows that you value their individual needs and creates a more tailored experience. 
• Use quizzes or surveys during the sign-up stage to collect information about subscribers' likes and dislikes. This enables you to curate boxes they'll genuinely love.

Unboxing Experience

• Invest in high-quality, branded packaging that aligns with your brand identity and creates a sense of excitement upon arrival.
• Consider using custom-designed boxes with your logo, colour schemes, and unique messaging.
• Use tissue paper, crinkle paper, or other protective packaging to create a visually appealing and durable item.
• Include personalised thank-you notes, discount codes for future purchases, free samples of other products, or surprise gifts to enhance the unboxing experience.

Examples of Great Unboxing Experiences

Subscription review sites, articles in mainstream publications, and influencers such as the Subscription Sisters are providing brands with plenty of airtime to showcase their products and gain user-generated publicity.

For UK-based brands, here’s a few examples that have been given the thumbs up:

• Mind, Body & Soil: Green-fingered subscribers are loving the plants and wellness gifts sent out by Mind, Body & Soil. From unique postcard artwork to protective packaging (a must) and seasonal selections, this delivery ticks all the boxes and carries huge resonance with its target audience.  
• Illumicrate and Fairyloot: Entertainment and Books is the most popular subscription category amongst UK consumers. Illumicrate and Fairyloot are cornering this market with Becca and the Books highlighting the sense of excitement and anticipation when receiving a subscription box. There’s even a plug for Wild cosmetics, highlighting the potential for cross-promotional activity with other relevant brands.
• LUSH Kitchen: Cosmetic giant LUSH has built an incredibly strong brand and remains a prominent high street presence. However, their online subscriptions are also drawing attention. With standout green boxes featuring a changing selection of shower and bath products, the LUSH Kitchen is earning rave reviews.

Subscription Box Shipping: Key Considerations

An effective business parcel delivery strategy underpins the success of a subscription-based business. A subscription model is rooted in certainty and predictability. So, ensuring you can manage your orders and delight your customers with every (on-time) delivery is essential.

• Managing Recurring Orders: The recurring nature of subscription boxes necessitates a streamlined fulfillment process. Consider automating tasks like order processing, label printing, and shipment tracking to ensure efficiency.
• Adaptability: You need to be prepared to handle spikes in order volume, especially during peak seasons or promotional periods.
• Carrier Selection: Research different carriers and compare their rates, delivery speeds, package size and weight restrictions, and surcharges.
• Carrier Costs: Factor in costs like shipping fees, packaging materials, and handling fees when determining your subscription box pricing.
• Speed of Collection: Choose carriers that offer prompt collection services to ensure your boxes are shipped on time.

Choosing the Right Carrier for Your Subscription Box

• Package Size and Weight: Consider the average size and weight of your subscription boxes when choosing a carrier. Some carriers offer specialised services for small parcels or heavier shipments.
• Delivery Speed: Balance your subscribers' service level expectations with your budget. While express shipping is appealing, it can be expensive.
• Delivery Area: Choose carriers with strong coverage in the areas where your subscribers are located.

Value of a Multi-Carrier Approach

Flexibility and choice are hugely important to both eCommerce subscribers and retailers. Therefore, having access to a broad range of delivery management solutions provides a significant competitive advantage.

Taking a multi-carrier approach offers greater flexibility and access to a wider range of delivery options.

However, working alongside a parcel delivery management partner goes further still by bridging the gap between couriers and systems.

Benefits include:

• One Sortation and Collection: Streamline your operations by having only one single collection.
• Access to Time-Saving Technology: Automate processes such as label production and integrate seamlessly with order management systems, eCommerce platforms and marketplaces.  
• Dedicated Account Management: Chasing multiple teams is time-consuming and costly. A delivery management partner will do the hard work for you. They’ll also be best-placed to make suggestions for enhancing your delivery strategy.

Why Parcelhub for Subscription Box Shipping?

With UK-wide coverage and access to 20+ carriers with 600+ delivery options, Parcelhub is the perfect partner for subscription-based retailers.

You can manage multi-carrier shipping through a single platform. And lower your shipping costs by taking advantage of the buying power of the wider Whistl Group.

Parcelhub provides a simple and seamless delivery experience for your customers. By partnering with us you’ll benefit from greater flexibility, enhance your business resilience (no more relying on one single carrier), and free up your time to focus on other important areas of your business.

Plus, with Proactive Tracking Support, Enhanced Delivery Management and easy Returns, you’ll have full visibility of the entire parcel journey. As well as customer service support that steps in to minimise failed deliveries.

Get in touch to save time and boost profits with our multi-carrier eCommerce delivery solutions.