The Booming Subscription-Service Business

In today’s economy, the demand for accessible and customized goods and services is steadily increasing, and companies are responding by bringing their business to the comfort of your home. With recurring payments, deliveries, and an ever-changing selection of products, pioneers like Amazon Prime, Netflix, and Dollar Shave Club are redefining what a modern transaction looks like. From movies and pop culture memorabilia to contacts and glasses, there is a reasonably priced subscription service destined to cut out the middleman for most industries today, and the numbers show that the companies developing this market have no intention of slowing down.

The subscription-service industry is booming all over the globe. According to a long-term survey conducted by McKinley and Company, the e-commerce market has grown by more than 100 percent per year in each of the past five years, grossing $2.6 billion in 2016 alone. We’re all familiar with Netflix and Hulu, but subscription-box services, like Blue Apron and Birchbox, have been growing in popularity in recent years. These companies provide subscribers with a new box of products — from groceries and cosmetics to potted plants — on a monthly, bi-monthly, or weekly basis.

The impact is widespread, with 15 percent of online shoppers saying they’ve subscribed to an e-commerce service over the past year. The numbers are even higher for entertainment services; 46 percent of the survey’s respondents subscribed to a streaming platform like Netflix. The priority for most customers is the ability to customize. Over half of all subscription services are built based on the pillars of curation and customization. And while some consumers buy subscriptions just for convenience, the majority sign up to be able to customize their products to their needs and preferences.

Whether you want graphic tees, hair-loss products, or healthy meals, there’s a subscription service for you.