The Ultimate Guide To Subscription Boxes

The global subscription box market size reached $ 32.9 Billion in 2023. The rise of subscription boxes has complicated assembly and kitting, but it has also given customers more options in what they buy.

What are subscription boxes?

Subscription boxes combine multiple products or SKUs into a new product or SKU. The products change on a regular schedule, typically each month. Customers may also have the ability to customize or approve what goes into their box.

For example, say you sell a family Bible story subscription box. Each month, families receive a box with a Bible story, a craft, and a workbook. The box only needs one copy of the Bible story to share but needs separate crafts and workbooks for each child. There are also two options for the craft each month.

On top of that, families are able to change the size of the box each month, as they may only want to receive materials for school-aged children during the summer. This is where advanced kitting for subscription boxes comes into play.

Subscription Box Inventory Management

Inventory management for subscription boxes can get complicated quickly. When beginning a subscription service, it’s important to consider which category your box will fall into:

• Standard - These boxes are bundles that allow no customization. Every customer receives the same box, but the box contents change each shipment.
• Customized - These boxes allow customer “approval” or full customization of contents and change each month.
• Sequential - These boxes may be standard or customized, but stem from a start date, rather than changing each month. Examples of sequential boxes include boxes for each month of pregnancy, as well as learning boxes where each box builds upon the last.
• Restock - These boxes are for ongoing, regular shipments of the same item, like toothbrush heads or dog treats. In many cases, these are not even considered subscription boxes, just subscription goods.

Once you know what type of box you’d like to offer, you can begin to discuss subscription box inventory management with your 3PL partner. They will most likely provide you with stock amounts that you will need to provide each month, and will help you come up with a back-up emergency plan if you run out of one product or order too much of another. They’ll also help you figure out storage options if you sell something with specific storage needs, like dry goods.

Subscription Box Fulfillment Services

As your subscription box becomes more complex, so does your fulfillment. Sequential restock boxes are relatively simple to fulfill. But, when you add customization, even a simple box can become logistically complex.

Fulfilling complex boxes at home can take lots of space and be very time-consuming. For this reason, most subscription box offerings are fulfilled by 3PL partners, rather than by the company itself. Choosing a third party will allow you to focus your time on the contents of the box, which is what will keep customers coming back for more.

Subscription Box Fulfillment Costs

It’s important to remember that you need to make up for any assembly and kitting costs with your box sales. Planning for over-ordering losses and extra costs when you price your box will help you keep your boxes profitable. A good 3PL partner will be able to help you with pricing, as well as with developing a fulfillment plan that is efficient and accurate. 

Subscription Box Shipping

In comparison to inventory and fulfillment, shipping may be the simplest part of the subscription box process. In fact, for standard, sequential, and restock boxes, it may be even easier than normal shipping because it can be planned for in advance. 

Most likely, your 3PL partner will stagger your subscription box shipping so that they won’t have to make an enormous shipment once a month. However, they can help you stagger your mailing list as well so that customers receive their box around the same time each month.

Cancellations and Customer Service

Online subscription services are notoriously difficult to cancel. One way you can stand out online is by making sure that cancellations and customer service are only a click away. If you don’t have 24/7 customer service available to them, you should have an automated way for customers to cancel their subscriptions on your website. While you may see drops in your subscription numbers, a positive company experience means that customers may re-subscribe at a later date.

It is also important to provide excellent customer service with your boxes. Subscription boxes are in a gray area between goods and services, which means that keeping in touch with your customers is crucial. A good 3PL partner can help manage refunds, returns, and customer communication to help your subscription list grow.

Ready to create a subscription box of your own? Check out our subscription box fulfillment process for more information on getting started!