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Subscription Box Fulfillment Services- What You Need To Know

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How Do Monthly Subscription Box Fulfillment Services Work?

A monthly subscription box is a consumer service in which customers automatically receive a new package every month with either the same products every time, various products the customer chooses, or new products chosen by the company. This creates a predictable revenue stream for the business.

Subscription box fulfillment services simplify operations for a company. A third-party logistics (3PL) provider can warehouse your products, assemble them into kits, ship them, and handle any returns. 

The subscription box industry grew by almost 900% between April 2014 to April 2018. Thousands of new subscription box companies have been founded in the last decade. How will your company profit from this growing industry?

How Much Does a Subscription Box Fulfillment Service Cost?

Your subscription box will be able to scale better if you hire a 3PL to fulfill orders. How much will this cost? The cost varies widely between industries and products. But many 3PLs charge similar types of fees. Expect to pay for: 

  • The initial setup
  • Receiving products at a warehouse
  • Storing your products
  • Picking and packing
  • Boxing products
  • Printing labels
  • Shipping products to customers
  • Reverse logistics (returned orders)
  • Managing your account

Every one of these fees will be customized based on your product weight and size, the monthly number of orders, geographical market, and many other factors. It’s vital to analyze a detailed quote (or several) before signing on with a 3PL.

How to Choose the Right Company for Your Subscription Box Fulfillment Services

You understand in general what fees will be associated with these services. But what other factors are important in choosing a 3PL besides price alone? Pay attention to other factors in a potential long-term partner: 

  • Size: Find a 3PL that is similar in size to your own business. For example, choose a small firm if your business is still in its early days. But choose a large 3PL if you have a larger, growing company.
  • Values: Since your 3PL will represent your organization to the public through the quality of its shipping, be sure their company values are similar to yours.
  • Market Expertise: Your 3PL should have outstanding skill in serving your target customers. They should be able to package and deliver products in a pleasing way for your market.

The ideal 3PL will be a partner and advisor to you. They will give you excellent feedback and ideas that could improve your business results. They should care about your success and work to help you achieve it.

Choose Elite Ops for Your Subscription Box Fulfillment Services

The subscription box industry holds great profit potential, especially for companies that partner with firms that are already experts in kitting and assembly, dropshipping subscription boxes, understanding consumer needs, and other aspects of the industry. 

At Elite OPS, we are experts in every aspect of the logistics process. Get a free quote from us for any fulfillment services you need, and learn how we can help you scale your business

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