For many people, the most exciting part of the month is opening up their mailbox and finding a surprise waiting for them. That’s why box-of-the-month subscriptions have become so popular in recent years. With a box-of-the-month subscription, you can get a curated selection of items delivered to your door each month, ranging from food and beauty products to books and clothes. And with so many different types of subscriptions available, there’s sure to be a box that’s perfect for everyone.
Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s Blog – Subscription Economy Accelerates as Stay-At-Home Lifestyle Spurs Demand
Box-of-the-Month Subscriptions Land in Many Households:
- There are over 7,000 global box-of-the-month subscription sellers currently.
- The most popular versions are health and beauty, clothing, and food.
- Mercator data suggests about 25% of US consumers signed up for some kind of box-of-the-month club in 2020.
- Monthly fees range from $10 to $50 and churn rates are a major seller pain point.
- 7% of US consumers subscribe to a food box-of-the-month service.
- Home goods and coffee/wine round out the leaders with 6% of US consumers subscribing.
About Report
The subscriptions economy has become a growth segment of the U.S. services economy. While subscriptions go back many years, it’s been the digitization of commerce and consumer purchase behavior that now drives the subscriptions market. Through 2022, online subscriptions will find higher growth due to continued consumer popularity of streaming services and software. Payments firms, including ISVs, merchant acquirers, and payment gateways, must understand the subscription management requirements of sellers and key trends that are driving market growth. A new research report from Mercator Advisory Group, Subscription Economy Accelerates as Stay-At-Home Lifestyle Spurs Demand, sizes up the U.S. online subscriptions market and its future direction.
“Video and music streaming has led the rapid growth of online subscription services for stay-at-home households during 2020. Online subscriptions have become a growth area within e-commerce and will continue in the foreseeable future. Bundled subscriptions prove to be a winning marketing strategy for the leading industry players such as Amazon and Apple and consumers have responded enthusiastically,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.
