Share:
POST
TWEET
SHARE
SHARE
EMAIL

Subscription box to be £1 billion market by 2022

By Sasha Fedorenko February 12, 2019 - 8:37 pm

The Subscription Box market looks set to reach £1bn in value by 2022 in the UK, according to ‘The UK Subscription Box Boom’ report released today by Royal Mail.

The reports says that the rise of subscription boxes has been driven by start-ups. The low barriers to entry in the subscription box market meant that even with limited resources entrepreneurs could build a business. Marketplaces including Yumbles and Amazon are also taking advantage of the trend by offering shoppers subscription boxes on their sites.

Subscription services give businesses an opportunity to increase revenues with repeat purchases. It also allows the size of the basket to mitigate delivery costs.

Looking overseas

Some 90% of subscription-led businesses make at least some of their sales internationally. Popular markets for international sales among those businesses include Ireland and France, where 46% of them have an overseas presence. Germany (39%) and Spain (31%) are also present good opportunities for new entrants.

The subscription sweet spot

Retaining consumers is vital for any subscription company. Even a small percentage of shoppers cancelling their subscription each month can have a significant impact on the subscriber base.

Overcoming the critical barriers to the take-up of subscription services requires the delivery of a convenient and flexible service. The offering should be easy to cancel and give something shoppers can’t find in conventional businesses. This might include unique products, a tailored, curated selection or just the element of surprise.

Comments are closed.

Featured in this article from the Tamebay Guide – companies that can help you grow and manage your business.

Yumbles

Yumbles is a British, curated marketplace connecting food lovers with the UK’s best small batch independent food and drink producers across the country.

Amazon

Amazon started as online book store and has grown to be the worlds largest online retailer.

Royal Mail

Royal Mail is the leading provider of postal and parcel delivery services in the UK. We deliver to over 230 countries and territories worldwide.

See More Companies >

Recent Comments

2 hours ago
Alison Cloonan: I need to check my delivery times, we dispatch the next working day, however, postage...
2 hours ago
Alison Cloonan: Thank you for this great post and about donating to charities, as a regular eBay...
2 hours ago
Alan: To hit the metric , the tracking numbers would need to be uploaded before the...
3 hours ago
Jonty: @rob Completely agree. And we always claim from Royal Mail. They market their services with compensation...