Customers sign up with brands to get a regular shipment of goods. The fulfilment is the operational process of getting these orders to customers.

It incorporates all aspects of the operation from receiving the goods in the warehouse, storing ready for the orders, pick, pack and shipping as well as making up the subscription boxes in bulk.

To keep customers on your service, having a great fulfilment service is imperative.

As the eCommerce industry continues to adapt and evolve, we have seen a huge influx in companies offering subscription boxes to their customers.

During the pandemic, subscription box sales soared, Royal Mail estimated the UK market at £1.4bn, a 135% increase from 2017. It forecasts a further rise to £1.8bn by 2025.

In 2022, it was reported that at least 81% of UK households had signed up for at-least one Subscription box service, highlighting the demand and appeal for subscription boxes. Currently, the most popular sectors for subscription boxes include;

• 52% – Food
• 24%- Shaving Products
• 22%- Clothing
• 18%- Perfume and Cosmetics
• 14% – Pet Supplies/Products

Much like anything in the eCommerce and logistics industry, challenges can arise.

Shipping is a crucial aspect of the subscription box fulfilment, and its extremely important that orders are shipped on time.

However, when it comes to shipping, unfortunately delays and issues can arise that are outside of your control.

From delays with the supplier, to delays with the final courier, there are many factors that can cause a hiccup in your subscription box fulfilment process.

With subscription boxes, it is crucial that each order is sent out on time, if a customers order repeatedly arrives late, they are likely to cancel their subscription, meaning you’ve lost a recurring customer

That is why it is important to ensure that every aspect of your supply chain is reliable, trustworthy, and efficient. A good supply chain minimises the risk of issues arising.

Depending on the type of subscription box you offer, your products can either stay the same or change each time your customers subscription renews.

When changing products on a monthly basis, it is crucial that you leave enough time for your manufacturers or suppliers to have the products sent to you or your 3PL to ensure that your orders can be picked, packed, and shipped to your customer on time.

Even if your subscription boxes remain the same, it is still important that your suppliers or manufacturers have enough time to get the products made and shipped to you, which is also why good inventory management is essential.

You don’t want to order products at the last minute as this is likely to cause delays and increase your overall costs. Similarly, you don’t want to order too many units of a certain product as excess stock can increase your storage costs.

t can be hard to decide whether or not you should outsource your subscription box fulfilment, or keep it in house. There are two main things to take into consideration when it comes to making your decision;

• The level of kitting and assembly required
• The volume of orders you are sending

Lets consider two different scenarios to help better understand why these are important factors…

Read each scenario below…

You are a skincare brand. The same products are shipped directly to your customer every month on the same day in a branded box with some promotional inserts, and a thank you card.

Your products are pre-packaged but you require that they are placed in the box in a certain order as the products must be used in a specific order by the customer. Each month you ship over 1000 subscription boxes.

You are a luxury, high end jewellery brand. You just launched a few months ago and you are still trying to establish yourself in the market. Each month you send out different products as your customers can pick and choose which products they want in their box that month.

Your products are shipped in custom boxes, and each box must be packed with custom tissue paper, and a hand-written thank you note that personally addresses the recipient. Each month you ship 20 boxes.

Now that we have outlined two scenarios, lets consider what the best option would be for each of these companies based on the above information.

Due to the low level of kitting and assembly required, and due to the high volume of orders shipped every month, company A may find that the best solution for them is outsourcing.

Partnering with a 3PL would provide cost, and time effective solutions for the company since they can provide reduced rates on shipping and storage, as well as eliminating the time it takes you to pick, pack, and ship orders. This will allow you to put more time and money back into growing the business.

If your subscription box fulfilment requires something similar to the needs of Company A, outsourcing can be a great option for you.

Due to the high level of kitting and assembly required, and the low volume of monthly orders shipped, company B may find that it is more beneficial to remain in-house.

Though most 3PLs offer kitting and assembly, as well as the ability to use custom packaging, most deal with a large volume of orders across their fulfilment centres and therefore may not be able to pay attention to detail in the way you require.

Not only this, but depending on the 3PL, it usually isn’t as cost effective either and you will probably find that it is more cost effective to remain in-house. If your subscription box requires something similar to the needs of Company B, out-sourcing may not be the best option for you. But it is still something you could enquire about as each 3PL is different

Its important that you choose a 3PL that is reliable, and can meet the needs and requirements of your business. Lets explore some things to look out for when outsourcing your subscription box fulfilment…

The unboxing experience is a huge focal point of any eCommerce business, but particularly with subscription box businesses. Branded packaging not only elevates the unboxing experience, but it can also serve as a marketing tool too.

As mentioned, most 3PLs offer custom packaging options, but its important to check what other custom options they have, such as the ability to include inserts, thank you cards, tissue paper, etc.

At TSP, we offer custom packaging solutions as we understand the importance of the unboxing experienced, so from branded tissue paper to packing your products in a certain order, we’ve got you covered.

When looking for a 3PL, you want to ensure that their location suits the location of your customers.

If your customers are geographically diverse, you will want to partner with a 3PL that has a network of warehouses in different locations, as this will improve shipping times and costs.

Its also important that you ensure they work with a range of reliable couriers to ensure the risk of lost, damaged, or delayed parcels is minimised.

At TSP, we have a network of over 80 fulfilment centres across the globe, so whether you sell products domestically or internationally, we’ve got you covered. Not only this, but we partner with the most reliable couriers to ensure your orders arrive safely, at cost effective prices.

As mentioned, kitting and assembly is a crucial component in the subscription box fulfilment process. Its important that you establish your kitting and assembly needs with the 3PL before finalising your contract with them.

At TSP, we offer a range of kitting and assembly services. Need products placed in a particular order? Do you sell custom kits where product combinations change per order? Whatever it is you require, we’ve got you covered.

You’ve got a great product; marketing is going well and you’ve signed up loads of loyal followers to your subscription service. Great.

But you’ll not keep them coming back for more if you aren’t getting the orders to them on time.

At TSP, we are able to serve a range of markets within the eCommerce industry, demonstrating our flexibility when it comes to your subscription box fulfilment.