Wouldn’t it be nice to have customers who patronize your products in recurring basis? Well, this is the reason why subscription boxes emerged in the market. This is a trading technique that allows retailers to send a package of their products to their customers on a regular basis. This is found to be very effective in the U.S. In fact, there are now 400-600 subscription boxes offered in this country alone, with prices ranging from $10-$100. However, it has its own limitations as well since this type of trade is only ideal for products that can be shipped. Therefore, the smaller and the lighter the product it is, the more it qualifies for a subscription box.
There are 2 types of subscription boxes and among these are as follows:
This is best for those consumers who always want to order something different and new. They are those who find delight in experiencing surprises as they unfold new products that the company has to offer.
This is meant for those who only want to have a regular supply of a specific product. And they find it very convenient to have these products delivered at regular intervals without the need to visit a local store. With this type of subscription box, you can expect to receive greater chances of having lifetime customers and increase their annual spending and purchase frequency.
Today, there are many businesses resorting to subscription boxes to sell products. Many online stores cater to a lot of products which addresses different types of markets. They have products for women, men, babies, people who like to game, pets and even drinks and foods plus a whole lot more.
How this Benefits Customers
Subscription boxes do not only benefit entrepreneurs of having regular clients but it also allows customers to enjoy a lot of advantages too. If you order for a subscription box, you become a recipient of many company discounts. Many of these products come with tiered value and frequent delivery. It makes them affordable for many customers in different socioeconomic status. Therefore, this increases the purchasing value of clients since they are able to acquire the product that at a lower price. And because they are regular users of these commodities, they can enjoy more savings in the long run. And because they are delivered with these products in regular basis, they don’t have to deal with a lot of headache choosing what commodity to buy.
For discovery commerce, clients will enjoy a lot of surprises in every delivery. And as they discover new products, they can experiment on what works best for them. For convenience commerce, customers need not spend time doing the purchase, giving them more free time to do other things.
The flaw is the lock in period. When you are locked in for a 1 month subscription, you can no longer do anything about it even if you don’t like the products. This means you will keep on receiving the product for one month. You may be able to cancel the subscription but you will have to pay for the termination fee.
Subscription boxes can be good marketing strategies. However, you need to check and study this well before venturing into this type of business venture so you can weight its pros and cons. Just click here to learn more about it.