Curated Subscriptions: Benefits and Challenges for Your Fulfillment Strategy
What is a curated subscription?
Curated subscriptions are a type of subscription service where a brand selects a group of products for a customer based on their preferences on a set schedule, such as on a monthly or quarterly basis.
The purpose of the curated subscription model is to offer consumers a way to personalize a product selection and have brands conduct product discovery on their behalf. Subscription businesses will normally select products either by using historical sales data or having consumers complete a quiz or questionnaire.
When dropshipping and third-party marketplaces have made it easy for consumers to access endless product variations, curated subscriptions offer a different value proposition in eCommerce; they make the process of discovering products exciting and unique. Every new box gives consumers the opportunity to try a new product, discover a new brand, and become attached to something they didn’t even know they were missing.
The benefits of curated subscriptions
Personalization
Even with all the tools that now exist to provide customers with personalized online shopping experiences, execution remains tough. Product recommendations that don’t align, ads that chase you around the web; it’s not surprising that many consumers are still underwhelmed by personalization efforts.
Because curated subscription boxes select products based on the information that shoppers give them – and have the ability to refine selections over time – they do a better job at creating memorable, unique experiences than one-off purchases do. So long as a curated selection remains relevant to the customer, curated subscriptions can run for months with no further acquisition costs.
Manage excess inventory effectively
Curated subscription boxes offer a way for businesses to repurpose their excess inventory for different channels, provided that the items still fit with subscriber preferences. Whether it’s an actual product pick, a freebie, or a gift with purchase, curated boxes are a useful tool to divert inventory that would otherwise end up gathering dust or tying up valuable storage space in your warehouse.
Powerful brand experiences
Consumers can easily shop in an online store and buy multiple items, having complete control over the entire experience. So, why outsource decision-making to brands who offer subscriptions?
Convenience certainly plays a big role. But there’s also the desire for more immersive, tactile brand experiences that conventional eCommerce doesn’t always provide. The delivery and unboxing experience of an Amazon order, for example, is generic, forgettable, and doesn’t recall any particular brand narrative.
A curated subscription box that integrates value-adds like branded packaging, inserts, free samples, thank notes, and more creates a compelling brand interaction that promotes loyalty and customer satisfaction.
Challenges of curated subscriptions
Offering long-term variety
Brands need to know their subscribers’ likes and dislikes to create a subscription box that surprises and delights. However, this only gets harder the longer a subscription lasts.
As customers get used to receiving their box every month, the surprise product selection doesn’t hit the same way it did at the start. Over time, brands can struggle to keep serving up interesting, enticing selections that don’t repeat or come too close to what a customer has received before. To avoid churn, you need to keep gathering fresh insights to inform future product selections.
You can do this by sending your customers a feedback email about their latest box, or by monitoring social media and email analytics to gauge their response to your offerings. You could also launch a more in-depth seasonal survey that focuses on upcoming trends. To ensure a high uptake, consider incentivizing your subscribers with free examples, or exclusive discounts off their next box.
Forecasting demand
Inventory management for curated subscription boxes is a serious undertaking in eCommerce. When each subscriber has their own unique preferences that your offering must cater to, it’s difficult to forecast demand for different types of products. Moreover, every new subscription brings a unique picking and packing workflow for that box for that specific customer, making standardization difficult.
Finding the right fulfillment services
Subscription box fulfillment is not a straightforward process, especially when curation is involved. Different picking and packing for every box, kitting, subassembly, and custom packaging elements make for a time-consuming and labor-intensive workflow that is very difficult for businesses to scale as their subscriber base grows.
Not every 3PL will have the expertise and value-added fulfillment services to fulfill curated boxes effectively. So, if you are thinking of adding a curated subscription service to your line-up, it’s important you have the right partner on your side.
What other subscription models or offerings should you consider?
The value proposition of subscription offerings is to assist customers in discovering new products and accessing their favorites, more easily. However, there are alternative subscription models and promotions that eCommerce brands can consider that are less complex to execute than curated subscriptions:
Replenishment subscription boxes
Replenishment subscription boxes involve sending consumers regular deliveries of items that are used on a regular and consistent basis, such as prescriptions, self-care products, or household goods. Replenishment subscription boxes are much easier to fulfill with curated boxes, as each box is consistent in its contents and only the schedule of the delivery will vary. Because they emphasize the convenience of receiving basic goods, replenishment subscriptions generally see lower churn rates than curated subscriptions.
Product bundling
Product bundling is when a brand offers multiple complementary products together for a single price. It differs from subscription boxes in that bundles are generally one-off purchases, but encourages customers to purchase items together at a discounted rate compared to buying each item individually. Bundles can benefit from time-sensitive promotions and offers that increase buyer urgency, as well as target different seasonal needs.
Members-only collections/subscriptions
Members-only offers cater to customers who have signed up for a paid program or reached a certain loyalty tier that gives them exclusive access to products or services. Because members-only subscriptions or offerings cater to a more select group, this can be easier to manage in terms of order volume and give access to your most loyal customers who are highly engaged with your offerings, which is ideal for robust data collection on preferences.
Should you launch a curated subscription?
Curated subscriptions can offer eCommerce merchants a competitive differentiator in a crowded market, enabling them to repurpose inventory assortments and create a new revenue stream that’s less prone to seasonal fluctuations. A curated box is a fantastic way to promote loyalty among customers who are looking for something a little outside the norm they can find on Amazon. However, curated subscription boxes are tricky for an eCommerce business to manage and scale effectively, demanding a sophisticated fulfillment strategy that can implement a memorable brand experience into the fulfillment process.
Finding a 3PL partner who can equip you with the right technology and infrastructure to make subscription box fulfillment a reality is the first step for any eCommerce brand thinking about offering a curated box. Talk to ShippingTree today to find out how our value-added services can help!
