Matt Zajechowski http://www.shorr.com 3m 752
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Rising Popularity of Subscription Boxes
Across the country, subscription boxes are arriving on people’s doorsteps at a growing rate. The number of categories that subscription boxes focuses on is increasing, including shaving products for men, beauty products for women, toys for children, an abundance of new products of mothers and their babies, and even a box for your dog! There are over 2,000 subscription boxes services in operation as of March of this year and that number continues to grow. The amount of visits to subscription box websites has risen by over 3,000% in the last 3 years alone, up from 722,000 visits in 2013 to 21.4 million in 2016.
Subscription boxes often require a monthly subscription, usually as low as $5 per month and may range as high as $30 to $50 a month, depending on how many products you wish to receive. While the hype of subscription boxes does eventually die down and some companies are going out of business, many other larger corporations, such as Amazon, Starbucks, and Walmart are hopping on board and delivering new products, sometimes test products to people before they ever get released into their stores.
Subscription boxes are not a new phenomena, as the subscription-based package stemmed from magazines, newspapers, and local food deliver companies that would deliver daily to your door. The hype of the modern subscription box is what is offered inside, from new quality beauty products to fun and entertaining games and toys to clothes. The possibilities of the subscription box and the merchandise within are endless.
I worked with Shorr Packaging to research further into the state of the eCommerce subscription services industry. We want to show just how the industry has taken off as well as which brands are leading the charge. We turned the research we found and turned it into this visual guide that can be seen here. In the guide we take an overlook at the state of eCommerce subscriptions, the top 20 most popular brands of subscription boxes, the most popular by category as well as the origin of subscription eCommerce services.
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The State of Subscriptions: A Look at eCommerce Subscription Services
My Subscription Addiction list 2,000 subscription box services in operation as of March 2016.
The average subscriber receives seven boxes and has at least twelve on their wish-list.
In late 2014, Walmart launched Walmart Beauty Box.
Makeup and beauty boxes dominate the most popular subscription boxes.
More and more big companies are joining in such as Starbucks, Adidas, Amazon, and Macy’s.
TOP 20 Most Popular Brands of Subscription Boxes (As of June 2016 – According to My Subscription Addiction)
- Julep Maven
- Walmart beauty
- beauty box
- graze.com nature delievered
- STITCH FIX
- BOXY CHARM
- DOLLAR SHAVE CLUB SHAVE TIME SHAVE MONEY
- ALLURE BEAUTY BOX
- Love with Food
- beautybox five
- Beauty FIX
Most Popular By Category
Food: graze.com nature delivered
Mom: The Honest Co.
Babies: The Honest Co.
Kids: The Honest Co.
Coffee: BEAN BOX
Craft: DARBY SMART
The Origin of Subscription eCommerce Services
Magazines, newspapers, and local food delivery companies were some of the earliest subscription services. But subscription services have evolved into unique verticals targeting vinyl collectors, beauty gurus, and even gold miners.
Columbia Record Club reached 125,175 members in 1995 and 16 million by 1996.
Their subscriber list grew by 12,782% in 41 years.
In 2010, Birch Box essentially began the modern eCommerce subscription services we know today. Their member list skyrocketed to 45,000 in one year.
Their subscriber list skyrocketed to 800,000, which equates o an impressive increase of 1,777% in 2.5 years.
In 2011, we saw more and more subscription boxes enter the market targeting different demographics…
Moms & Babies
… including a few that are establishing their own niches.
- The sock enthusiast
- The survivalist
- The gold miner
The State of Subscribing
A new consumer insights retail report found that visits to top subscription box web sites have exploded by nearly 3,000% over the past three years.
Subscription Box Website Visits
2016 21.4 million
Average Subscription Box Website Visitor
Median Age: 41
Median Income: $78,436
58% are women
Subscription boxes are generally popular with everyone. In fact, during the 2015 holiday season, 8.6 million Americans (4.3% of the online population) visited subscription box websites.
On the Flip Side
13% of the merchants tracked by My Subscription Addiction have already stopped operations.
This could be because heavy product discounting and the novelty of discovery that draw customers to them or the cost associated with packaging.
shorr | packaging corp.