The benefits for pure plays or retailers exploring new channels include a locked-in regular revenue stream and access to a rich trove of customer data.

For consumers, they fulfill needs from convenience to variety. Attrition is high, though. Once the novelty wears off, some start to question a subscription box’s value and lack of flexibility. 

According to an August 2018 survey by GPShopper, fewer than 9% of US subscribers reported any changes to their shopping habits after signing up for a service. Most consumers neither spent less money nor shopped in store less often due to receiving a subscription box. They also didn’t discover a new favorite brand or continue to purchase a product. The biggest draw for subscription boxes was the ability to sample products without having to commit to a full-price, standard size version.

Sourced through Scoop.it from: retail.emarketer.com