Putting Outsourcing to Work for Subscription Box Fulfillment

The subscription box craze is taking the country by storm. Everything from beauty products to gourmet foods to pet supplies can be delivered to consumers’ mailboxes for a recurring fee.

This business model has generated an explosion of start-ups. According to Fast Company, the subscription commerce industry is growing at a rate of 200 percent a year.

While the business model can be inexpensive to start, it can be daunting to sustain. Subscription companies face a host of challenges. Demand for a personalization experience, unpredictable growth patterns, peak-order-processing, and slim profit margins are common pain points.

The New York Times warns that maintaining a subscription business can be “a punishing logistical grind.” The monthly cycle of inventory management, order fulfillment and transportation can be grueling. High shipping costs, tight delivery windows and international shipments further complicate operations.

Many subscription box companies have determined that outsourcing fulfillment to an experienced provider can help to overcome many of these challenges. This report explores five of the biggest benefits of outsourcing.