Product Subscriptions are on the Rise Among E-Commerce Brands

Retailers are taking advantage of the growing online retail space in unique ways. While many have chosen the traditional digital storefront, others have developed personalized, trial, and subscription based product lines that appeal to the modern consumer.

Natural innovator The Honest Company sells their products both online and in local retail stores. They have a large following of mothers, as well as health and wellness enthusiasts who are able to spend a higher premium on natural products. The company has taken advantage of their consumer base by offering themed product bundles that are delivered once a month via mail. These bundles guarantee on-going sales while providing the consumer with discounted products. For example, their “Diapers & Wipes” bundle contains a one-month supply of premium eco-friendly diapers and wipes for $79.97 per month. The same products, if purchased separately, would cost $103.50.

eSalon, a hair color company that operates in the online space, is taking a different approach to e-commerce sales. The company requires each consumer to complete an online profile that details their coloring history and future needs. It then creates a custom color formula based on their individual answers and sends it via mail – along with a professional coloring kit.

According to pandodaily.com “In the four years since first launching its product to the public – after two years of R&D – eSalon has now produced 80,000 unique hair color formulations and currently has 100,000 active customers that have purchased over 1 million color applications. Roughly 85 percent of these customers receive the company’s color products on a recurring subscription, with the average frequency being every six weeks.”

 

Do you receive any monthly product subscriptions? Let us know in the comments below!

Story and Photos via PandoDaily, eSalon, The Honest Company.