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.

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