The market for subscription-based products has grown significantly over the past few years. More and more customers are discovering the benefits of home delivery. From beauty products to flowers and gifts, from pet products to alcohol, a growing number of industries are actively adopting a delivery model that has proven to be highly lucrative.
According to research by IMARC, in 2020, the delivery goods market generated $18.8 billion in revenue and is projected to increase by 20.1% annually between 2021 and 2026. For subscription products, packaging is very important, because it is what buyers form the first impression of your products. What’s more, well-designed packaging will help keep shipping costs as low as possible and meet all marketplace requirements, including Amazon certification requirements and package size requirements for local and international delivery services. In this guide, we will detail what you need to know about packaging for items sold online.
There are three types of packaging for subscription products
Companies that provide subscription services may have different business models and different end goals, so you need to decide on the type of service you offer before moving on to choosing the best packaging option. There are three main types of subscription services:
- Curation subscription. When a customer purchases this type of subscription, he does not know what he will receive, and the contents of the package will be a small but pleasant surprise for him. Typically, products are selected based on customer preferences, and this subscription option is often used by food, beauty, and apparel companies. Examples of this kind of subscription are Hello Fresh and Stitch Fix.
- Replenishment subscription. This type of subscription allows customers to restock items they use regularly and save time and money in the process. This is a common subscription option for companies that sell everyday products such as vitamins or razor blades. Amazon offers this service for certain products. Thus, customers receive this or that product regularly, every month.
- Access-based subscription. Access-based subscriptions provide customers with exclusive access to certain products or benefits that they cannot access otherwise. This type of subscription is actively used by clothing and food brands such as NatureBox and JustFab.
Which markets are actively using packaging for subscription products?
Subscription packaging is used across a wide range of industries and offers a range of benefits not only to businesses but also to consumers. From a value-for-money point of view, packaging for subscription products is a cost-effective solution to increase brand awareness without having to display the product in the store. Here are some examples of sectors of the economy that are actively using packaging for goods delivered by subscription:
- fashion brands, including clothing, accessories and style;
- beauty and grooming industry;
- food and beverage companies, especially specialty food products such as farm food or craft drinks;
- educational service providers that offer textbooks and kits for children’s art;
- pet product brands, including dog food, treats and toys;
- subscriptions to fitness products, healthy food, or fitness accessories.
Why is subscription packaging important?
The subscription market is a lucrative business and is therefore highly competitive. To succeed in this direction, companies need to have a loyal customer base and offer them products that really make their lives better. Buyers can quickly unsubscribe if they are not satisfied with the products offered. The study showed that the main reasons for canceling a subscription are dissatisfaction with a product or service and the unjustified purchase of a particular product.
On the other hand, customers like this service because they enjoy the unexpected surprise. In this case, the goods are delivered directly to their home. It is very important to make a vivid impression on your subscribers so that they stay with you for a long time. Carefully thought-out packaging is very important in order to make a positive impression on customers that they will remember for a long time. When your package is delivered to the customer, the package should make the same unforgettable impression as what is inside it.
The purpose of packaging for subscription products is to increase brand loyalty, and if certain conditions are met, this can be easily achieved. Loyalty can only be earned with high quality standards, and many customers have higher requirements for subscription-based services. As such, the return process for subscription-delivered products should be as simple as possible, and proper packaging plays an important role in this process.
Is your subscription package truly satisfying to your customers?
The main goal of subscription products is to provide the highest level of customer satisfaction, and your packaging should contribute to this. This is your chance to impress your customers by giving them an experience they will remember. Thanks to this, they will look forward to your package every month (or on a predetermined regular basis). Your packaging should make an impression on its own. This can be achieved with the help of an original packaging design, interesting printing or a special thank-you card. The process of unpacking a package should increase the anticipation of seeing its contents, so your packaging should not just be a faceless shipping box – it should stand out for its originality.
Six Essential Packaging Requirements for Subscription Items
When designing your packaging for subscription products, you need to pay attention to the following points:
1. Packaging is a means of expressing your brand. Your packaging is a means of expressing your brand and making your subscription services stand out from the competition. Make sure that even the smallest detail of your packaging reflects the image of your brand.
2. Original packaging, photos of which can be published on social networks. Customers love sharing what’s new on social media, and your packaging should make them want to post pictures of it online. Subscription shipping packaging can make a big statement and help increase your brand awareness. In addition, the use of QR codes has increased significantly in recent months, with more brands starting to use them to communicate digitally with customers through packaging. Consider putting a QR code on your packaging for contests, games, or digital features that further support your brand. In this way, you will be able to receive data about the behavior of your buyers in real time.
3. Environmental friendliness. More and more buyers are taking sustainability into account when making purchasing decisions. Make sure your packaging is sustainable, and shoppers are more likely to choose your brand over companies that don’t care about the environment. Learn more about the role sustainability of packaging plays in your purchasing decision here. However, just having sustainable packaging is not enough. This information must also be communicated to your customers. Make sure your packaging communicates to consumers that it is sustainable and consider including information on how to recycle it.
4. Optimal shipping cost. Your packaging must be suitable for shipping to customers on a regular basis. Design postal packaging that meets the requirements and recommendations of delivery services. This will ensure that your goods will be delivered to customers safe and sound.
5. Reliable protection of the contents of the package. Your packaging must provide the necessary level of protection to eliminate any risk of damage to the goods in transit and ensure that the goods arrive in perfect condition. For packages that carry expensive goods, consider using an ISTA-certified packaging supplier. It can perform a detailed check on the reliability of your packaging through a series of tests that simulate real-life shipping conditions.
6. Easy opening of the package. Your customers want to open the packaging as quickly as possible in order to immediately receive positive emotions from the purchased goods. Make sure your package can be opened without scissors. Instead, the package can be sealed with a tear tape or zip fastener. One of the mistakes that companies often make is that customers do not know how to open the packaging easily and simply. Post instructions for opening the package so that customers can immediately understand how to open it.
We at Smurfit Kappa have been offering subscription packaging to companies for many years. Our experts can help you create packaging that creates the right thoughts and feelings about your brand, maximizes customer satisfaction, and meets the demands of shipping companies or marketplaces like Amazon. Contact us now and we will discuss in detail all your future packaging options for products delivered by subscription.
