Why Do Subscription Boxes Succeed?

It is needless to say that the subscription box economy is on the rise, and more than half of online shoppers admit to saying they are members of the most popular subscriptionboxes. This data has been founded by the Clutch, a business to business research firm in Washington DC.

The founder of a popular subscription box spoke to Clutch on this data, providing industry insight into how subscription boxes became such a hot commodity. He noted three definite trends that motivated the growth of the subscription box industry:

a.       The growth of e-commerce

b.      Increased use of social media

c.       Consumer’s comfort with paying for value over time 

E-commerce and subscription boxes are not separate entities 

The subscriptionboxes for tweens and e-commerce are more or less the same thing. E-commerce sales surpassed the transactions and sales in stores for the first time in 2019. It has been noticed that as ecommerce grows, subscription box services become increasingly intertwined with it.

An owner of a subscription box company said, “It used to be, you are a subscription box or you are an e-commerce company.” He also commented that “Now it is all direct to consumer e-commerce. Sometimes they have a subscription and sometimes they don’t.” Therefore, it can be said, consumers display significant demand for subscription box services, spurring the growth of the industry.

One of the owners of a significant subscription box company said, “Consumers have accepted the model. They have accepted that curated personalized products being delivered to their door on a regular basis is of high value and they are interested in it. Now, it is being integrated in all sorts of places.”

The owner has also commented that “What we are seeing is more and more folks realizing that curation and personalization are the future.”