The subscription boxes are the new phenomenon when it comes to customer satisfaction and business success, combining utility with fun. Think of the fact that every month your customers are waiting in anticipation for that box to arrive with selected products for them. The fun of ‘unboxing’ these surprises has gone viral with 58% of consumers expressing their liking of the concept of finding out what is in a box. But it is not only an enjoyable activity; it is a great promotional opportunity. When you deliver value and delight, you are not only creating customer loyalty but also taking advantage of what we call word-of-mouth communication through the internet.
The subscription box industry remains a rapidly growing one even in the present times. According to market research, it is expected to reach a value of over $50 billion by 2024. It is expected to reach $65 billion by 2027 at a CAGR of 18.3% between 2022 and 2027.
With this growth, more brands are going for personalized experiences for their customers. As with any other marketing strategy, personalization is a potent tool to increase sales while strengthening the relationship with clients. It makes them feel that they are important hence they will be loyal to the specific brand.
In this full guide, we will show you the complete guide to subscription boxes including the types of subscription boxes and how to create your own subscription box. Prepare yourself to learn how to transform one-time customers into faithful subscribers!
What is a Subscription Box?
A subscription box is a monthly delivery of products that are of a full size to the customers. They can vary from three to six months, or even more.
Custom Subscription boxes can be of various types. Customers get to select normal boxes for skincare, hair care, beauty, pet care or they can select special occasion boxes.
Subscribing to a box creates a special service. It is a great way for the brands to launch new products into the market successfully. The cost of subscription depends on the product type offered. Once the customers subscribe, they can get products from the company weekly, monthly or quarterly.
Subscription boxes also provide a perfect gift idea. They’re considerate and creative, perfect for individuals you might not be close with or for events that need to be most memorable.
In a subscription box, you do not have to look for the products, let alone pack them on your own. People enjoy the expectation of a package that is coming their way. These boxes are fun to receive and may form part of a cherished memory or a wonderful experience.
For brands, subscription boxes are perfect in increasing their sales and in creating bond with the customers.
The Power of E-Commerce - Why Unboxing Matters
Now unboxing videos are a massive phenomenon on the Internet. These videos are about opening subscription boxes and showing the audience what the contents of each box are. These are real reviews which are effective—the use of word of mouth creates awareness, demand and customer loyalty.
The Beauty of Share-Worthy Packaging
In the current subscription box market, having just a great product isn’t enough. Packaging holds the same importance as the product itself and successful brands understand that. They involve the customers and other influencers by making unboxing a process worthy to be shared.
The Future of Online Shopping
The internet has revolutionized how individuals go about their shopping. Currently, 96% of consumers in America prefer online shopping because it is time-saving. When more and more businesses turn to online sales, the importance of the packaging in its visual appeal becomes greater as well. To the e-commerce brands, packaging is not a box but the first point of engagement with the customers. If it does not, then it can affect the perception they have about your brand even if they love the product inside.
How Does the Subscription Business Model Work?
Subscription box business model involves providing goods or services at a fixed interval of time in a box at a fixed fee. Customers can easily be attracted by it and it is highly recommended today due to the benefits that both the customers and businesses will derive from it.
From the business viewpoint, this model offers guaranteed income. Consumers subscribe daily, weekly, monthly, quarterly, or even annually to various goods or services. When customers are committed, then businesses have the opportunity to win them over by offering a variety of products.
Subscription boxes also assist the businesses in customer retention strategies since the customers are bound to be intrigued to know what next product of the company they are paying their hard earned money for. When customers come back for more, it is predictable income and word-of-mouth advertising. It also assists companies in strategizing its resources, as well as to anticipate amounts of cash needed for expansion.
For customers, subscription boxes are convenient and diverse, which is why they are loved by everyone. They can shop online and get different products at their doorstep, all in one price package. Sometimes they come with a discount which adds to the beauty of subscription boxes.
On average, convenience and the new experience make customers embrace subscription services.
Seven Industries Perfect for Subscription Boxes
When selecting a niche for subscription boxes, one ought to go for the industry that best fits the business brand, as well as the customers.Here are some industries that thrive with subscription boxes:
1. Food and Beverage
The food and beverage industry is one of the most generous when it comes to subscription boxes. Coffee boxes are also preferred since coffee is used every morning. Subscriptions for specialty coffees can be very lucrative, and you can also add in things such as mugs or snacks for an added charge.
2. Pet Care
Pet subscription boxes are good for the pet care industry. These boxes can contain snacks, chews or toys and other accessories needed by the pet. As Americans spend billions of dollars on their pets, this industry is well positioned. Many businesses such as the BarkBox have proven that pet owners appreciate the ease and the diversity.
3. Beauty and Skincare
The beauty industry is one of the best industries for subscription boxes. Custom Beauty boxes can be cosmetics, skin care, makeup, and perfumes. Some are specialized in one brand while others provide a selection of selected brands. Customers like to experiment with products, and therefore, it is suitable for this industry.
4. Fashion and Apparel
There is an increase in fashion subscription boxes since customers receive customized fashionable clothing. Boxes can contain different items, and often, the customer receives predetermined items from the stylist. This model will enable customers to take what they like and return the remaining.
5. Food Delivery and Meal Kits
Several food delivery services such as HelloFresh have come to be famous in the market. Examples of food subscription boxes are snack boxes, niche food hampers or meal delivery services. In this industry, especially food business, availability of proper channels of supply and distribution is crucial for the products to be delivered fresh.
6. Publishing and Media
Subscription boxes for books and media are very popular in the publishing industry. Customized book boxes can be a carefully compiled set, a gift set, or special offers. This model is suitable for those who love books and those who are seeking nontraditional ways of reading.
7. Alcohol and Beverage
The alcohol industry with focus on wine products is a common subscription box product. Wine of the month clubs deliver selected wines to the consumer’s door and usually contain additional items such as recommended foods and accessories. This industry enjoys customers who are loyal and who also value recommendations that are made personally to them.
Subscription Box Industry Statistics
Subscription boxes are thriving in today’s market. Here are some key stats that show their growth and success:
- According to recent research, subscription box sales have over 20% of their products in niche categories.
- In 2024, around 64% of consumers in the United States were found to be using at least one subscription box.
- It is worth noting that about 28% of consumers select a given subscription box based on word of mouth.
- More than 65% of subscription box sales are in beauty and food categories.
- Streaming services are increasing the interest of the subscription box. About 46 percent of streaming customers may also like subscription boxes.
These figures show the trends and usage of the Subscription Box in diverse markets.
Different Types of Subscription Boxes
First, the best subscription boxes are defined by the materials and the ability to perform the function they were designed for. Here are the categories of the subscription boxes:
1. Rigid Boxes
The rigid boxes are strong and give a luxurious look. They are made from thick paper board and most commonly used for luxury products. These boxes can be printed in different designs and they do not need assembling. Because of their rigidity and sturdiness they are particularly useful when storing small and fragile items such as jewelry or cosmetics.
2. Folding Cartons
Folding cartons are easily portable and very versatile. They are made from paperboard and in many cases they are flat during shipment. These boxes are also ideal since brands can easily paint them in different colors. Customers can fold them into shape after receiving the product. It may be used for food products, cosmetics, and other general merchandise products for packaging.
3. Mailing Bags
Mailing bags are flexible packaging and are made from either plastic or paper material. It is used in garments and other similar and related merchandise. These bags are reusable and can be sealed easily, and can be branded or printed with any form of artwork. They afford protection against dampness and destructive handling during transit but are not as protective as rigid boxes.
4. Corrugated Boxes
Corrugated boxes are made from layers of cardboard hence making it stronger than a normal paper. They are mostly used in transportation of bulk goods and they can endure a lot of abuse. These boxes can also be used for easily breakable products to get to their destination safely.
5. Tuck-End Boxes
Tuck end boxes are a type of folding cartons with flaps that are tucked in the box to hold the contents. They are simple to construct and can be laminated with different patterns. These boxes are common for small items such as beauty products, or food supplements.
6. Pillow Boxes
Pillow boxes are shaped and look like a pillow, however they are not actually made of any stuffing materials. They are commonly constructed from low density fibreboard and are fairly simple to erect. These boxes are more classy and are usually used for small items, gift items or jewelries. The shape sets them apart and enhances the feel of unboxing them.
7. Window Boxes
Window boxes are usually transparent and shoppers can view the products kept inside the box. They are mostly applied to food products, perfumes, or souvenirs because they give the products the best look. These boxes serve their practical purpose of organizing products, and, at the same time, are eye-catching, which means they will draw customers’ attention.
8. Subscription Kits with Inserts
Few subscription boxes have extra inserts or dividers that help to categorize the received products. These can be constructed using cardboard paper or foam; which is useful in protecting fragile items. This type of packaging is perfect for beauty boxes or food kits for instance as it makes the packaging clean and secure for shipping.
9. Eco-Friendly Packaging
Organic packaging employs environmentally friendly products in packaging, for example, cardboard from recycled materials or biodegradable plastics. The essence of a sustainable brand can appeal to consumers that are conscious about the environment. It can be applied for many kinds of packaging including rigid boxes, folding cartons, mailers and so on, but with the least harm to the environment.
How to Design Your Own Subscription Box Packaging?
1. Identify Your Packaging Needs
Choose a size and shape that corresponds to the products you are going to deliver in the subscription box.
The kind of packaging material to be used should depend partly on the weight and sensitivity of the items.
2. Choose the Right Materials
- Box Types: They are rigid boxes, folding cartons, and mailer boxes. Choose one that is right for your brand and your product.
- Protective Materials: Pack fragile products in loose materials which include bubbles, newspapers, or biodegradable peanuts.
3. Focus on Design and Branding
- Branding Elements: Ensure that you have used your logo, your brand color and the type of font you want to use on the packaging to maintain the brand image.
- Design Aesthetics: Make sure the design corresponds to the topic of your subscription box and will be interesting to the audience.
4. Optimize the Packaging Experience
- Thoughtful Details: Add notes, thanking cards or any promotional material that can add value to the needs of the customers.
- Presentation: To make a suitable appearance inside the box, use of the tissue paper, the ribbons or stickers is recommended.
5. Consider Sustainability
- Eco-Friendly Materials: Choose biodegradable materials for packaging to attract customers who are concerned about the relation between the company and its environment.
- Minimalist Design: Eliminating unnecessary packaging saves money and helps to avoid the pollution of the environment.
6. Plan for Logistics and Shipping
- Durability: Make certain the packaging is strong enough to resist shipping abuse so as not to affect its contents.
- Weight Considerations: Minimize the cost of shipping by opting for relatively thin materials that will still offer a good amount of protection.
7. Test and Iterate
- Prototypes: Develop models of your packaging to check their utility as well as the product’s appearance.
- Customer Feedback: It is necessary to get feedback from the subscribers in order to determine what aspects require improvement.
8. Cost Management
- Bulk Purchasing: One should order materials in large quantities in order to cut on expenses.
- Supplier Relationships: Develop realistic supplier partnerships for the receipt of cheaper and high quality goods.
9. Stay Compliant
- Shipping Regulations: Check that your packaging covers all the shipping standards especially if your products are to be shipped abroad.
- Labeling Requirements: Provide necessary labels and instruction, especially for such products that need special handling in the process.
Top Printing Techniques for Subscription Boxes
When constructing a subscription box for any brand, there are always goals in mind that the box should meet. People don’t want a simple brown cardboard box! That is why printing is critical. Below, let’s explore the three most common printing techniques you can apply to your boxes:
Flexographic Printing
This method transfers your design using a printing plate onto the box surface. It is suitable when ordering a large number of straightforward logos. However, the cost of making the printing plates can be high, this makes it unfavorable for use when producing small quantities of products.
Printing
Lithographic printing yields very good quality images and its colors are rich and clear, and its lines are very distinct. Although it produces beautiful effects, this method may be costly. In subscription boxes, you may not require this much detail.
Digital Printing
Digital printing is the most cost effective technique available among the four. It does not use special plates, this makes it cheaper in the long run. This method involves using inkjet or laser to print directly on the box without the need of applying any other material.
In total, it can be said that digital printing is the most suitable for subscription boxes. It gives you enough quality, affordability and time, and it enables you to design attractive packaging for your products.
Conclusion
The use of subscription business models assist brands to develop good relations with their customers. It is another way of making a branded experience and is paramount especially in e-commerce.
At The Box Lane, we deliver a personalized service for your customers. The packaging of the product in our custom boxes gives your product a unique unboxing experience. This assists in increasing the sales and developing the customer base.
Reach out to us now to know how we can help level up your subscription box packaging!