Inside the Subscription Box: Research on Ecommerce Consumers

Inside the Subscription Box: Research on Ecommerce Consumers

Consumers across the globe have become a subscription nation. In fact, the average active subscriber of such services has two subscriptions and over a third have three or more subscriptions. This shows that once a consumer tastes the convenience and joy of receiving monthly packages, they get hooked. Who doesn’t like receiving an unexpected parcel? 

Our team at Blue Whale Media has put together some information and research on ecommerce consumers. Our blog will cover how big subscription ecommerce has become, what attracts consumers and why they subscribe for a service or monthly package subscription.


Making the subscription model work 

The subscription business model is a business model where a customer pays a regular price, either monthly or more frequently, to access a product or service. It can be challenging for subscription ecommerce companies to acquire and then retain consumers. Conversion is weak; only 55% of those who consider a service for those who consider a service ultimately subscribers, probably because people will reluctantly sign up for a long term commitment. However, this means the subscription ecommerce market has plenty of room to grow as more consumers become aware of it. 

Adopting the subscription lifestyle 

Subscriptions are an increasingly common way to buy products and services online. Approximately 15% of all online shoppers have now signed up for a subscription to receive products regularly. The low barriers to entry in the subscription box market have meant that even with limited capital and resources, entrepreneurs can establish and build a successful business. Subscription box companies have not always considered big retailers or brands to be their direct competition, but now they’re finding ways to work in collaboration. 

The original subscription service 

Of course, the idea of subscription services is not brand new. It began back in 1926 when the book of the month club was launched as a membership service that offered readers new and exciting books delivered each month by mail. This service aimed to introduce new authors to the world. Over 90 years later, in 2019, the book of the month club service is still providing a monthly subscription and promoting debut authors to its loyal audience. 

Loyalty builds over time

The value of the subscription services model seems to be both convenient and cost-saving. Many people are tempted by the convenience or value of a membership or subscription service. The prospect of receiving personalised, exclusive and unique offerings drives many people to try box subscription services. The loyalty to the subscription brand builds over time, as curated solutions prove valuable to the customers who receive them.  

The subscription ecommerce market has grown by more than 100% a year over the past five years. Subscription boxes allow companies to increase engagement and cultivate loyalty in a way that few other programs can. 

Ecommerce continues to be a driving force in the economy; as a digital agency, we are always interested in learning how service can grow the revenues of a company in the long run.