Royal Mail – subscription boxes a good business model

In the latest report on subscription boxes by Royal Mail, it has shown that around 60% of subscription box businesses are planning to invest in new or existing subscription services in the coming year.

In addition 52% of businesses agree that subscriptions are one of their major focuses of their company in the near future.

Of those businesses, 90% say that they make at least some of their subscription from outside of the UK, and 24% make more than half of their sales from abroad.

Brand loyalty is a key motivation to launch these services. Other reasons include a desire for greater control and lower start-up costs.

ROI from subscription boxes is very quick, with 62% achieving this within three months of a customer signing up.

Popular overseas markets include the Republic of Ireland, France, Germany and Spain.

A spokesperson from Royal Mail said “UK businesses are really buying into the growth opportunities that subscription services can deliver. Driving greater brand loyalty is a key motivation for launching subscription box services and we are also seeing lots of international opportunities for subscription businesses. We’re here to help these businesses along the way, wherever they are in the UK.

“With the UK’s biggest by far “Feet on the Street” network covering 90.000 postmen and women, Royal Mail is playing a key role in keeping carbon emissions low. The vast majority of subscription items are letterboxable and so are ideally suited for on-foot delivery by Royal Mail and do not require a van delivery.”