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Boost subscription service numbers and more with this expert insight.
October 3, 2016
By: Maria Haggerty
CEO of Dotcom Distribution
With year over year growth in omnichannel commerce, the subscription box model is making a splash on the market. An estimated 10,000 subscription box services are currently in circulation and all brands now face a new rapidly growing set of competition in offering the best online-to-offline experience. No matter a company’s level of eCommerce and omnichannel expertise, its success highly depends on mastering the logistics of the fulfillment and delivery experience. Subscription boxes are revolutionizing eCommerce sales, essentially creating a new market for entrepreneurs. However, to measure up to already successful companies like Birchbox, beauty brands must use leading delivery methods to retain customer loyalty. With many subscription services retailing via similar models, fulfillment is an area where brands can truly differentiate themselves from competitors and earn lifelong business. Yet, many subscription models struggle to manage the logistical efficiencies and day-to-day operations of managing their companies. When packages arrive late or in substandard condition, this is a direct reflection of a brand’s identity and can cause customers to take their business elsewhere in the following areas. The Benefits of an eCommerce Fulfillment Partner For eCommerce companies, packaging can often be the only touchpoint brands have with consumers. For subscription services that rely on consistent delivery over an extended period of time, trusted fulfillment operations are even more critical to sustain long-term brand health. As many subscription services are newer to the world of online sales, an eCommerce fulfillment partner can handle the logistics of moving packages to ensure all shipments reach customers, both on time and in pristine condition. Working with an experienced fulfillment partner can offer brands the competitive advantage they’re looking for: 1. Execution and Efficiencies Once a brand picks its subscription box packaging, an eCommerce fulfillment and logistics company can help optimize items for assembly.For example, while a company may have packed items in individual sheets of tissue paper, a fulfillment partner can drive efficiency — and therefore profit — by recommending all items be put in one carrying sleeve instead. eCommerce fulfillment companies have the operational expertise, scalable batch production environment, time sensitivity and industry experience to deliver any company’s vision effectively and efficiently. Additionally, as subscription services are delivered on a regular basis, fulfillment partners offer the capability to rapidly receive, inspect and position a high volume of orders in a short period of time, saving brands time and money. At the last stage of shipping, fulfillment partners also offer brands access to an existing transportation network, as well as to freight management and global logistics services. When fulfilling orders domestically and globally, it’s key to have a partner that understands and can easily navigate this complex space. 2. Brand Identity and Social Sharing By getting packages delivered on time and in great shape, an eCommerce fulfillment partner can help preserve a brand’s identity and reputation with consumers. When a package arrives at a customer’s doorstep in pristine condition, that shopper can focus on key branding aspects like color and design or add ons like branded notes and packaging. Arriving on time and in logistically sound condition is the first step in highlighting the unwrapping experience and encouraging social sharing. Research shows customers want to share packaging that intrigues them, and when they do, the results are impressive. In fact, 61 percent of online shoppers were convinced to buy a product after looking up images on social. However, none of this will happen if a subscription box arrives a week late or tattered. The bottom line is brands miss out on major marketing opportunities when they allow fulfillment logistics and strategies to fall through the cracks. Many eCommerce brands are eager to join the subscription service boom, and they should be — continuity programs are a smart way to engage and excite shoppers long term. Brands can turn to fulfillment partners and solutions to find lasting success with this particular sales strategy. Fulfillment and associated operational demands are the true foundation of membership-based eCommerce, and an area brands should consider partnering with an eCommerce fulfillment company to master. To learn more about the process of working with an eCommerce fulfillment partner, download “Emerging in eCommerce: A 360° View From The Inside” here. About the Expert Maria Haggerty is the driving force behind Dotcom Distribution's third-party logistics team. Since co-founding Dotcom Distribution in 1999, she has played a critical role in developing and defining all aspects of the business, including sales and marketing, operations, finance and IT.
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