How to choose suppliers for a subscription box service
Published May 11, 2018
Customers sign up for a subscription box service to receive quality products on a regular basis. In turn, an ecommerce organization relies on its suppliers to maintain inventory and get items out to subscribers. One of the major questions that a subscription business must answer as it strives to build a base of customers is where to obtain the materials it needs to efficiently prepare and ship packages.
Understanding how to find suppliers can set the conditions for a company to grow and succeed. Decision-makers must think strategically about choosing the suppliers involved in every aspect of operations. Here are some essential considerations to take into account when establishing the supply chain for a subscription-based business:
Sourcing products
"Develop relationships with relevant brands and wholesalers."
Subscription companies specialize in a huge variety of products, from curated collections of cosmetics to the ingredients for easy weeknight dinners. For any of these businesses to succeed, they need to maintain plentiful supplies of products and stay ready to meet demand as new subscribers sign up. Take into account what your customers value most, and develop relationships with relevant brands and wholesalers to keep your company's services on track.
The costs of production and shipping are also vital factors in determining what products can be included in a subscription box. Small differences in the size or weight of items can add up when you send out numerous packages each month. Working closely with suppliers to control these expenses puts an organization in a better position to continue growing.
When it comes to keeping tabs on these products, an advanced order management system plays an indispensable role. Having visibility into the availability of goods and straightforward capabilities for allocating and placing reorders puts a subscription company ahead of the game. Automating inventory reduction allows a company to function more efficiently and work more effectively with suppliers.
Choosing the right packaging
Subscription-based organizations need packaging that not only keeps items secure, but also contributes to an overall brand experience. A thoughtful, appealing design makes it more exciting for customers to receive each shipment. In turn, they're more likely to take photographs and share them on social media, helping to spread the word about a service.
There may be a wide range of options for materials and appearance, including differences in shape, color, thickness and printing quality. Regardless of its preferences, a company gets the best results by connecting with a supplier that can meet its specific needs.
Take advantage of warehousing and fulfillment services
A partner with extensive resources for warehousing and ecommerce order fulfillment pulls everything together to ensure customers get the right products in a timely fashion. When a subscription company scales up, getting products into the correct packages and out the door can become a serious operational undertaking. Working with experts who have established facilities, experienced personnel and relationships with leading shippers allows a subscription business to streamline its processes.
To thrive in a competitive ecommerce landscape, subscription business must be able to count on their supply pipelines and speedy operations. SFG provides organizations with the technology and operational infrastructure they need to keep thrilling their subscribers and expanding over time.
