Thinking inside the subscription box: New research on e-commerce consumers

McKinsey surveyed thousands of US shoppers to understand subscription e-commerce trends. The findings have implications for start-ups, as well as retailers and consumer brand manufacturers entering the market.

Subscription e-commerce, led by start-ups such as Dollar Shave Club, Blue Apron meal kits, and Stitch Fix personal styling, is a fast-growing new way of buying online. Our research shows that 15 percent of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis, frequently through monthly boxes. Subscription e-commerce services offer these consumers—often younger, affluent urbanites—a convenient, personalized, and, often lower-cost way to buy what they want and need. Churn rates are high, however, and consumers quickly cancel services that don’t deliver superior end-to-end experiences. McKinsey – Read more…