Subscription boxes have been around for a while now, but they’ve only recently started making an impact on logistics companies. Logistics companies are responsible for getting your box from the warehouse to your door. And as more and more people start subscribing to boxes, the need for efficient and reliable logistics grows greater and greater. These boxes are changing logistics companies in various ways, as explained below.
Increased Need for Third-Party Logistics (3PL)
The need for third-party logistics (3PL) is increasing as online shopping gains momentum. Third-party logistics manages all parts of the supply chain – from distribution centers to transportation – and is vital for an efficient supply chain.
An example would be managing warehouses, fulfillment, transportation coordination, inventory management, and everything else in between. Boxes require lots of storage space because they come with so many different products that need to be kept in specific conditions.
Increased Need for Packaging Design
Another effect that subscription boxes have on logistics companies is creative and efficient packaging. For example, if you’re a monthly wine club, one of the best subscription box fulfillment companies has to store multiple bottles of wine in your box. This requires creative thinking about how to pack these items together without damaging them while also creating enough space for shipping purposes.
Subscription boxes contribute significantly to brand loyalty. A lot of these boxes send out samples of products. Consumers use these samples to decide what they like and then place an order for the full-sized product through whichever retailer or manufacturer is involved. This means that these sub boxes are great marketing tools for companies. They do this by encouraging customers to try new things.
The last effect that subscription boxes have on logistics companies is customization. For example, if you’re selling fruits in your box, it doesn’t make sense to send them in a box with apple logos all over it when they can spoil faster than most products.
Instead, you’ll want the box to have the appearance of being eco-friendly, so consumers will feel better about you selling fruits in it even though they might not last as long. Logistics companies are forced to think creatively about the packaging if their boxes represent brands regularly.
Brand loyalty is one of the main ways moving to subscription boxes has changed logistics companies. 3PLs are handling more customer service requests due to this and are constantly being asked to find new ways to safely package products together in unique ways. And finally, small companies can provide their products for sale because they have access to these 3PL warehouses through sub boxes.