Are you amazed at how the subscription box business has taken off? Just about a decade ago, in 2011, the subscription box industry accounted for $57 million in online sales. Expanding over 100% each year, in 2016, subscription box sales totaled $2.6 billion. Since then, due to venture capital investments, the subscription box industry has grown, introducing more new categories over time. In the latter part of 2020, according to Savemysent.com stats, subscription boxes were holding their own at $15 billion in January 2021. Pandemic fatigue is likely to have something to do with this craze for monthly packages that arrive at your door like magic.
Types of Subscription Boxes
It’s important to begin by understanding that subscription boxes generally fall into three types.
- Access subscriptions give members discounts and exclusive products and account for only 13% of all subscriptions.
- Replenishment subscriptions such as supplements, razor blades, and other daily essentials weigh in at 32% of all box subscriptions.
- Curation subscriptions allow customers to pre-order products or items that are chosen based on preferences and represent about 55% of the subscription box industry.
Currently, everything from pet treats to apparel is getting the subscription box treatment. While all this kitting and assembling packages is good for business, because of the guaranteed monthly revenue subscription boxes generate, the time it takes can become overwhelming, especially when your orders are complicated.
Whether you’re already fulfilling orders on a large scale, or growing significantly in the subscription box department, Phase V can provide the picking, kitting, packaging, and shipping of your orders to your customers. Fulfillment outsourcing has experienced major growth in the past decade as a direct result of increased online shopping. E-commerce merchants have realized that to survive the increasing influx of sales and continue to grow, partnering with the right third party logistics (3PL) service provider, such as Phase V Fulfillment, will save time and money, help them grow while the fulfillment company will take care of all of their fulfillment processes, including providing dedicated customer service representatives that will field their customers’ calls.
5 Reasons You Should Outsource Your Subscription Box Order Fulfillment Operations to a 3PL
Consider the top 5 reasons why you should outsource your subscription box order fulfillment operations.
- Fulfillment is what 3PL Logistics Companies do
Successful subscription box fulfillment requires intense attention to detail and quality optimization, plus a lot of time and labor that has very little to do with the actual running of your business. From onboarding your inventory to shipping packages to your subscribers, managing your inventory, and fielding customer service calls, A 3PL service provider becomes your partner in fulfillment. Skilled in the various aspects of the order fulfillment process, picking and packing logistics teams will automate your fulfillment process, whenever possible. For subscription box orders, flexibility in month-to-month curating procedures requires experience, as the devil is in the details. Conversely, with monthly subscription boxes that are the same each month, pick and pack teams can complete orders faster as the months roll by. Phase V’s 3PL service professionals will continually customize and automate your fulfillment operations to streamline your fulfillment process.
- Your 3PL service provider can simplify your life
Now that you’re growing and your orders are multiplying rapidly, you should be concentrating on marketing and customer acquisition, instead of worrying about getting orders shipped. You may have resorted to the “friends and family” plan up to this point to get orders assembled and now are feeling the additional pressures of payroll processing and scheduling your temporary help. A reliable 3PL service provider can alleviate the stress and distraction of fulfilling your orders, in addition to handling exchanges and returns, so you can get back to growing your business.
- 3PL providers offer turnkey solutions to your order fulfillment issues
Performing in-house fulfillment operations presents daunting challenges when you are just shipping one item but when you start shipping packages with multiple kitted items each month, some with different items per month, delivery times and product quality can start to slip, negatively affecting your business. Phase V’s skilled logistics team succinctly works out the intricacies of your fulfillment processes and gets your subscription box orders to your customers on-time, looking just like their orders came from you. As your 3PL provider, Phase V is your one-stop-shop for everything fulfillment.
- 3PL service providers can save you money and time
Even though you’re paying your 3PL provider to store your products, perform kitting, packaging, and shipping processes for you, think of the money you’re saving. You don't have to buy or lease and maintain a warehouse space. You are saving on the cost of packing and shipping supplies because your 3PL provider gets better discounts than you could for these necessities. You’re saving on developing or purchasing proprietary software that integrates with your multi-channel sales outlets and manages your warehouse/inventory logistics. Phase V partners with you to scale your business, so you only pay for what you need. If you fulfill your subscription box orders on a few days of each month and you need more labor than you do the rest of the month, Phase V supplies that extra labor, so you do not need to hire temporary staffing when your subscriptions need to go out. As you grow, you may need more hands to get your orders to your customers on-time, then, you have the flexibility to scale up your packaging team for more proficiency.
- Improved shipping services
Your 3PL provider’s shipping logistics team knows where and how to ship your orders for more efficient, on-time deliveries – the lifeline of the e-commerce experience. With subscription box businesses immersed in customer experience, on-time delivery is the primary goal in retaining monthly subscription box sales. As your 3PL provider, Phase V knows the most efficient way to ship your order, speeding up delivery times.
Subscription box sales are big! With scalable, flexible solutions to meet your most intricate kitting, packaging and shipping needs, Phase V’s tech-enabled 3PL services set your subscription box business up for success, from click to shipped! Contact Phase V for more information today.