If you’re running an e-commerce business, it’s natural that you want to focus all your time and energy on making sales, but your work doesn’t end when a site visitor purchases something: you still need to assemble, pack, ship, and ensure that orders get to your customers’ doorsteps.
If you offer a subscription option, the process continues: for each new subscriber, the number of deliveries that need to be assembled and delivered on time becomes theoretically infinite.
Here’s what you need to know when delivering subscription boxes to your customers, with tips from Britt Martin, head of partnerships at custom sustainable packaging provider. Arca Co-founder of a subscription business Meal times.
What is subscription box fulfillment?
Subscription box fulfillment is the process of delivering orders to customers who have signed up for a subscription. This includes managing inventory, managing returns, packing and shipping orders, and handling customer service issues.
Subscription box fulfillment types
Whether you fulfill your orders in-house or partner with a subscription fulfillment service provider, the subscription fulfillment process follows essentially the same pattern. The key difference is who performs the necessary steps. Here’s a breakdown:
In-house fulfillment
If you do your own fulfillment, you’ll need to store inventory, receive orders through your online system, pack boxes, create and apply shipping labels, and send packages through your chosen carrier. You’ll also be responsible for receiving returned products, restocking or recycling products, and processing refunds.
Shopify customers can streamline these processes by purchasing and printing discounted shipping labels. Shopify Shipping and Enable self-service returns From your Shopify admin dashboard.
Outsourced Fulfillment
If you choose to outsource, your fulfillment provider stores your inventory in one of their subscription fulfillment centers and receives orders from your online store, usually using an e-commerce platform integration. The fulfillment provider then packs, labels, ships, processes returns, and handles customer service.
you Shopify Fulfillment Network Use the app to sign up with Shopify’s fulfillment partner, Flexport, monitor stock levels, transfer inventory, track orders and returns, and see fulfillment metrics.
The challenges of subscription box fulfillment
Fulfilling any type of e-commerce order is challenging, but fulfilling a subscription box is especially complicated. “With subscriptions, there’s often a specific customer journey,” Britt says. “Fulfilling an ala carte order is much easier.”
Britt cites three unique challenges subscription e-commerce business owners face: changing product offerings, diversifying packaging styles, and the need to acquire new subscribers mid-cycle. Here’s a summary of each:
Complex product lineup
Subscription box assortments allow companies to offer a unique brand experience. “The great thing about subscription boxes is that you can really take the customer on a journey through each box,” Britt says. This can be difficult for retailers.
Boxes typically contain multiple products, and many companies vary the contents of their packages from month to month or customize their assortment based on factors such as customer preferences, season, subscription type or number of previous deliveries.
While this is great for customers, it can complicate quality control. Offering curated subscription boxes based on multiple overlapping criteria requires careful consideration of what should go into each package. Sending large volumes and a wide variety of products increases the time needed to ensure each shipment is correct.
Custom Package Requirements
use Brand Box It can provide a unique customer experience and increase customer loyalty. “Your packaging is the first physical touchpoint with a new customer and an ongoing touchpoint with your subscribers,” Britt says. “When you think about marketing from a retention standpoint, a referral or upsell standpoint, the box and the packaging are a real opportunity.”
However, it can also increase costs and limit outsourcing to companies willing to work with packaging providers. For example, a company that sends a subscription customer’s first shipment in a box labeled “Welcome” and the second shipment in a box labeled “About Us” must identify the correct items for each order and monitor inventory levels across multiple packaging assets.
Delivery time
Unlike ala carte items, which are shipped immediately after ordering, subscription services deliver on a regular schedule according to a set schedule.
Specific challenges vary depending on the model you choose. For example, shipping all orders at the same time each month can create bottlenecks. Staggering shipments to align with customer sign-up dates creates a more consistent fulfillment workflow, but you also have to manage different deadlines for different customers. Some businesses also let subscription customers choose specific delivery dates, so they have to juggle various deadlines.
Should you outsource your subscription box fulfillment?
Britt recommends that all subscription box businesses handle fulfillment in-house at first: “You can never tell someone else how they should process an order unless you’ve been through all the pain points and made mistakes yourself,” she says.
Once you have enough experience managing third-party fulfillment providers, you can evaluate your options. Keep these three factors in mind:
1. Order quantity
Outsourcing generally becomes more cost-effective as order volume increases. Fulfillment company Some services offer discounts on shipping costs and pallet storage fees to customers with large ordering volumes and require companies to meet minimum monthly orders.
2. Customization requirements
The right provider for your business can handle the complexities of a subscription model. The more complicated your delivery, the more you’ll pay for quality service. If your customers expect handwritten notes and a diverse product lineup, it may be hard to find an affordable provider that meets their needs. If all your customers receive the same four bottles of wine at the same time each month, it will be easier to find the right provider.
3. Business Resources
Consider your available resources, as outsourcing fulfillment will cost you money and fulfilling orders in-house takes time. If you are overstaffed, you may want to hire an employee to help with fulfillment to better utilize your in-house resources. If you have plenty of funds but no time, outsourcing fulfillment may be the way to go and focus on growing your business.
What to Look for in a Subscription Box Fulfillment Service
A good subscription box fulfillment company can help you save costs, provide a quality customer experience, and free up time to focus on growing your business. When researching your options, consider the following criteria:
Subscription Box Experience
Britt recommends finding a service provider with extensive experience with subscription box orders. “The key is to find a fulfillment partner that’s familiar with subscriptions,” she says. “It’s not the same as fulfilling an ala carte purchase, so you need a provider that understands the fulfillment process and can customize it for your unique products.”
E-commerce platform integration
Find out if your fulfillment provider can integrate their data management system with your online store. Many providers use software systems that are compatible with major e-commerce platforms, eliminating the need to transfer order information and reducing the risk of errors. Integrations can also help you sync customer data and inventory information.
Custom Packaging Options
Britt recommends inquiring about packaging, adding that many fulfillment companies prefer unbranded packaging. “The best fulfillment partners are ones that understand that customer retention and customer experience are far more important, especially for subscription companies, than making a few cents on an unbranded box,” she says. Britt also recommends choosing a provider that already has strong relationships with custom packaging companies.
customer service
You’ll be entrusting a significant part of your business to a fulfillment service provider, so look for a company that is responsive to you and your customers. Pay attention to how the company communicates during the sales process and ask who will manage your account, how you will contact them, and what to do if an issue arises. You can also read reviews from business clients and end consumers to get an idea of the provider’s customer service performance.
sustainability
Britt also recommends choosing a company that offers sustainable packaging and shipping options. “There’s a growing interest in sustainability, especially among Gen Z consumers,” she says, adding that wasteful practices like shipping small items in oversized packaging erode consumer trust. Choosing a partner with a sustainability plan in place can increase loyalty and reduce shipping costs.
Warehouse location
Storing products closer to end users lowers shipping costs and reduces emissions, so look for a partner with warehouses close to your largest group of customers. If you serve a dispersed customer base or plan to expand into new markets, consider a provider with multiple locations.
Subscription box fulfillment FAQs
What is subscription box fulfillment?
Subscription box fulfillment is the process of shipping products to customers who have signed up to receive recurring orders from your company. This includes storing and managing inventory, assembling and packing orders, selecting a shipping carrier, purchasing shipping labels and boxes, and handling returns and customer service inquiries.
Which companies offer subscription box fulfillment services?
Many fulfillment providers offer subscription box services. Here are some examples:
How do you decide when to outsource your subscription box fulfillment?
Many businesses outsource subscription box fulfillment when the monetary value of the time spent on in-house fulfillment exceeds the cost of hiring a third-party service provider. Additional factors include the level of customization required, available business resources, and preferences. If you want complete control over a personalized customer experience, you may choose to handle fulfillment in-house, even if it costs more.
