Subscription box
Subscription boxes are a recurring delivery of niche products as part of a marketing strategy and a method of product distribution. Subscription boxes are used by subscription-based ecommerce businesses, referred to as "subcom" for short, which follow a subscription business model. They target a wide range of customers and cater to a variety of specific needs and interests. It is estimated that there are 400 to 600 different kinds of subscription boxes in the United States alone and more overseas.[1] Subscriptions vary in both cost and frequency, making them more accessible to a greater range of customers with different socioeconomic backgrounds. Subscription boxes tend to range from $10 to $100 per box.[2]
History and appeal
[edit source]According to TechCrunch, Birchbox led the subscription box trend with its 2010 launch.[3] Birchbox inspired the launch of other subscription boxes in the early 2010s.[4]
Part of the appeal of subscription boxes is that consumers discover products they might not have otherwise.[citation needed] This allows customers to try products and brands risk-free.[citation needed] The increased exposure to new products helps customers discover optimal products for their preferences and needs.[citation needed] While only some subscription boxes have return options, there are places online to exchange unwanted items.[5]
The subscription box industry became more prominently known when Unilever acquired Dollar Shave Club in 2016, another well-known entity in this space.[6]
Business costs
[edit source]Shipping costs and the need to constantly innovate present challenges to retailers offering the subscription service.[7]
See also
[edit source]References
[edit source]- ↑ Jayakumar, A. (2014, April 7). Little-box retailing: Subscription services offer new possibilities to consumers, major outlets. Retrieved November 30, 2014, from "Little-box retailing: Subscription services offer new possibilities to consumers, major outlets - the Washington Post". The Washington Post. Archived from the original on 2017-07-15. Retrieved 2017-09-15.
- ↑ Hutt, K. (2014, April 8). Subscription Boxes Can Feel Like Christmas, But Are They Worth It? Retrieved November 30, 2014, from "Archived copy". Archived from the original on 2015-01-24. Retrieved 2014-11-30.
{{cite web}}: CS1 maint: archived copy as title (link) - ↑ "Birchbox Raises $60 Million". TechCrunch. 21 April 2014. Retrieved 2019-08-20.
- ↑ Cutler, K.-M. (2013, 08 15). Birchbox Says Its Subscription Model is Working. Retrieved from TechCrunch: "Birchbox Says Its Subscription Model is Working, with 25% of Revenues Coming from E-Commerce Store | TechCrunch". 15 August 2013. Archived from the original on 2016-05-20. Retrieved 2017-09-15.
- ↑ Fussell, J. (2014, September 22). From Birchbox to Bulu Box: Customers love the thrill of monthly surprises. Retrieved November 17, 2014, from "From Birchbox to Bulu Box: Customers love the thrill of monthly surprises | the Kansas City Star". Archived from the original on 2014-09-26. Retrieved 2014-11-18.
- ↑ "Unilever buys Dollar Shave Club".
- ↑ Vaamonde, A. (2013, July 9). The send-a-box boom. Retrieved December 18, 2014, from "The send-a-box boom - Fortune". Archived from the original on 2015-01-14. Retrieved 2014-12-19.