Subscription boxes

A subscription box is a recurring delivery of niche products.Subscription boxes are a marketing strategy and a method of product distribution. Subscription boxes are used by subscription based ecommerce businesses, referred to as "subcom" for short, which follow a subscription business model. They target a wide range of customers and cater to a variety of specific needs and interests. The subscription box industry is small, so there exists minimal data. It is estimated that there are 400 to 600 different kinds of subscription boxes in the United States alone and more overseas. Subscriptions vary in both cost and frequency, making them more accessible to a greater range of customers with different socioeconomic backgrounds. Subscription boxes tend to range from $10 to $100.

Various subscription commerce companies are growing rapidly. Since launching in 2011, Quarterly.co has doubled in size every six months. NatureBox, which launched in 2012, grows by 50-100 percent every month and BarkBox’s subscribers grew from 1,500 to 55,000 between 2012 and 2013. According to Forbes, Birchbox, which is arguably the most recognizable service and valued at a reported $485 million in April, 2014, led the subscription box trend with its 2010 launch. Birchbox's model of providing customers with samples of personal care products in order to up-sell customers into buying the standard sizes of the sample products they enjoyed has proven to be a successful marketing tool. Birchbox has reached nearly 400,000 monthly subscribers and has inspired many other companies to start utilizing subscription boxes.

Customers often receive discounts on products by buying them through subscription boxes. Many subscription boxes are offered in tiered levels of value as well as frequency of delivery. This allows subscription boxes to be affordable to a wider range of customers. Subscription boxes often have products in them that are of greater value than the subscription allowing customers to save money on products they already know they enjoy as well as try new products without having to risk spending as much on a product they may not enjoy.Choices are minimized for customers which prevents them from becoming paralyzed and makes decisions simpler to make. Because subscriptions are automated after activation, continuing to receive the product and maintain the subscription takes minimal effort for the customer. Customers are more satisfied when the purchasing process requires less work.

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Wikipedia