Several years ago, powered in large part by the COVID pandemic and resulting reduction in travel, subscription services enjoyed a huge rise in popularity. Even after customers returned to the stores, monthly and quarterly subscriptions for magazines, food products, cosmetics, and other products have remained popular, indicating that this sales model’s effectiveness is not limited to circumstances such as the unprecedented global pandemic.

The subscription box model is an intuitive fit for many e-commerce retailers, though relatively few choose to take advantage of its many benefits. Here are a few of the top reasons to explore subscription services and how Spectra can help power your campaign.

Constant Visibility

The main benefits of a subscription model can be thought of as either benefiting your marketing efforts or your profit margin. The marketing power of a subscription is the fact that it provides a periodically recurring positive experience for the customer. Once the customer has paid the initial price of the subscription, each following month brings a smile and a reminder of the enjoyment that the customer gets from your product.

When a customer purchases a subscription on behalf of someone else, this marketing benefit is compounded, as the recipient of the gift becomes likely to become a paying customer as well, perhaps even giving subscriptions as gifts in the future. The more perceived value your products have for your customers, the more likely they will be to renew their own subscriptions and give others as gifts.

Predictable Revenue

The largest benefit of a subscription model for your company’s profit margin is predictable revenue. Whether you choose to charge monthly, quarterly, or annually, a subscription gives you a much better idea of your revenue in the coming year than attempting to predict one-time sales, even using detailed metrics from previous sales.

Receiving payment for an entire year or more of subscriptions also means that revenue comes in well before products are shipped to customers, creating a body of capital that can be used for investment in the growth of the business.

Streamlined, Consistent Fulfillment

Closely linked to the idea of predictable revenue is the benefit of a predictable, consistent fulfillment system. Recurring periodic orders like those of a subscription box model are ideal for 3PL fulfillment, as many processes can be automated and products can be stocked in the right quantities for upcoming orders. 

Accuracy in Kitting

While subscription boxes are powerful revenue generators and provide built-in marketing, it is essential that the 3PL service you work with is able to execute your fulfillment with accuracy and high quality. While reliable delivery of monthly subscriptions indicates dependability and professionalism on the part of your organization, the opposite is also true. Missed deadlines, boxes shipped to the incorrect addresses, and delivery of damaged products will hurt your organization’s reputation and prompt cancellations and negative word of mouth. 

Beyond the Subscription Box

Spectra’s fulfillment facility and team are equipped with everything necessary to conduct a successful subscription box campaign for your e-commerce company. Our decades of expertise prepare us to not only execute accurate, on-time shipments on a monthly basis, but also to guide you in improving and expanding your subscription model. 

While many small e-commerce retailers start out by storing inventory in a garage or rented space, keeping track of customer orders on a spreadsheet, and handling customer communications in-house, this system only works up until a certain point in the company’s growth. As business increases, there comes a critical moment at which the services of a 3PL provider become necessary. Attempting to continue in-house fulfillment or choosing a provider without the necessary resources will inevitably result in mistakes, shipping delays, and other problems that bring hard-earned growth to a halt.

E-Commerce Integration

E-commerce businesses that are growing quickly often have one critical question for us when they meet with Spectra for the first time: Do we integrate with their storefronts? The short answer is yes–Spectra integrates with Amazon, Shopify, ShipStation, Ebay, Etsy, WooCommerce, and all other standard online storefronts. No matter what online platform you sell through, Spectra provides seamless fulfillment for both subscription and one-time purchases.

In-House Print Capabilities

Spectra offers additional value to e-commerce retailers in the form of an in-house print facility that is fully equipped to produce print collateral, marketing materials, packaging, labels, and more to make subscription boxes look great. Rather than contracting with an independent printer to design and create these materials, Spectra can handle the entire project in-house. This saves not only money, but also valuable time–a critical commodity when it comes to subscription boxes, which must be sent out according to a predetermined schedule. 

E-commerce organizations can take advantage of this print capability by including renewal notices, special offers for other products, marketing for partnering retailers, and other collateral to help grow the client’s already-established relationships with subscription customers.

B2B Subscription Campaigns

While most people think of subscriptions in the B2C context, there is also a place for the subscription model in B2B fulfillment. Franchisees or retail partners around the country often need the same materials in similar quantities on a regular basis, and seasonal marketing campaigns can be planned out well in advance. A national corporation can ensure that end users have all the materials they need year-round by offering a subscription system.

Spectra’s online storefront system makes it easy for end users to place orders and sign up for monthly subscription boxes. These storefronts are fully customized and branded for the client, so it is clear that the end user is ordering from the client, not from Spectra. The user experience is fantastic, comparable to those of the most popular online retailers. If you are looking for more effective ways to serve your B2B end users, get in touch with us to learn more about this valuable service.

Find out just how powerful the predictable, recurring nature of the subscription model can be for your organization. Contact Spectra today to talk with a fulfillment expert and discuss your needs.