{"id":14212,"date":"2022-05-02T03:39:10","date_gmt":"2022-05-02T10:39:10","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14212"},"modified":"2023-06-13T10:21:59","modified_gmt":"2023-06-13T17:21:59","slug":"tips-for-subscription-service","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/tips-for-subscription-service\/","title":{"rendered":"Fulfillment Tips for Brands Offering a Subscription Service"},"content":{"rendered":"

Customers love convenience and <\/span>ecommerce brands<\/span><\/a> love predictable revenue. Offering a subscription service is a fast track to have both. Some of the more famous brands who made the subscription model popular include Dollar Shave Club, Blue Apron, and Stitch Fix.\u00a0<\/span>\u00a0<\/span><\/p>\n

A recent McKinsey study states that the subscription ecommerce market is projected to reach $473 billion by 2025, up from $15 billion in 2019. It\u2019s a hot market to be in right now\u2014and very competitive. To keep customers happy and reduce customer turn-over, brands need to <\/span>get their fulfillment right<\/span><\/a>. Here are the best ways to keep subscribers happy.\u00a0<\/span>\u00a0<\/span><\/p>\n

What are the Types of Subscription Service?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

A subscription service is an <\/span>ecommerce business model<\/span><\/a> when the merchant offers to ship products on a set timeline\u2014monthly, quarterly, or weekly, for example. This type of service is often set up as a membership payment system, where the customer pays monthly or annually for the products they will get throughout the subscription period.\u00a0<\/span>\u00a0<\/span><\/p>\n

Depending on the product, ecommerce brands can choose from a few types of subscription service models:\u00a0<\/span>\u00a0<\/span><\/p>\n

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  1. Curation: the merchant puts together an assortment of flavors, products, or types of goods that are different each iteration. Think: flavored sodas or an assortment of various accessories. There might be a Spring box, and a Winter box, both very different from each other.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
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    1. Replenishment: only applicable to <\/span>consumer packaged goods<\/span><\/a> (CPG), the merchant sends the same product to the customer at a regular interval to replenish the old product. Think: razor blades or toothbrush heads for an electric toothbrush. <\/span>\u00a0<\/span><\/li>\n<\/ol>\n
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      1. Access: the merchant can provide specific goods or content to subscribers who opt into an \u201caccess\u201d membership. This is more applicable to digital goods. Think: streaming content. \u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

        The Benefits of Ecommerce Subscription Services\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

        There are many obvious perks to a subscription of goods. Customers get the convenience of a more personalized way to buy products and get access to new things before they might see them in stores. While it may be difficult operationally for brands, they benefit as well.\u00a0<\/span>\u00a0<\/span><\/p>\n