27 Jan Subscription Box Companies Can Increase Profits 22% and Reduce Cancellations with Kable Fulfillment
Subscription box companies fulfill a special niche for consumers by providing a regular delivery of curated products each month. But as their popularity grows, so grows the competition and the need to operate smarter.
The nature of the subscription box industry creates unique challenges for sellers as they do for any online store – complicated IT requirements, high customer expectations, and a need to manage shipping costs.
For many, the largest pain is felt in the area of shipping with increasing postage costs cutting into already tight margins. Adding to the monthly stress is the small window of time between inventory delivery and the deadline to assemble and ship finished products to customers. Kable helps subscription box companies in 3 key ways.
Lower Shipping Costs
Taking advantage of Kable’s strategic location and volume discounts, clients save an average of 35% per unit/order on shipping. This is made possible from the volume discount Kable shares with its customers thanks to the 100,000+ small packages shipped from their facility each month.
Fast Inventory Turnaround and Order Fulfillment
Of special relevance to subscription box clients is Kable’s 245,000 sq. ft. facility with 18 dock doors, which helps the warehouse receive, stage, and turnaround product fast.
For one such customer, this was a game changer. Their commitment to customers is that boxes ship by the 15th each month yet had missed that goal the two previous months prior to Kable’s involvement. This recurring issue had only gotten worse as their business grew. Now, Kable assembles thousands of boxes (with 12 to 18 items in each) daily and has reduced their turn-around time from inventory receipt to shipment from an average of 8 to just 2.5 days. Since partnering with Kable, the client reports a significant decrease in subscriber cancellations and profits have improved 22%.
A Smooth Startup and API integration
IT integration with their fulfillment operation is important to every online retailer. The following is a comment from Daniel Drewno from Cratejoy.com regarding his experience working with Kable.
“Our integration with Kable’s API went seamlessly from the beginning. Considering our typical complex product set up and over 3,000 monthly subscribers this was a welcome result. I’ve worked with several 3rd party APIs in the past which were handling fulfillment and shipping for our merchants and frankly they’ve all been terrible except for Kable.”