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Subscription Models Are Becoming Ubiquitous For COG E-Commerce

October 18, 2018: 12:00 AM EST
McKinsey found e-commerce sales through subscriptions were over $2.6 billion in 2016, up from $57.0 million in 2011. They are being used by startups and established brands as well as large pure-play etailers and bricks-and-clicks, and large CPGs have been acquiring subscription commerce companies. According to McKinsey, there are three main subscription types: auto-replenishment; curation and recommendations; and access through some form of members-only platform. Reasons for canceling accounts depended partly on the type of service. For auto-replenishment, quality and lack of flexibility were seen as issues, but poor value was a common reason for terminating curated or members-only accounts. Sampling prestige products is seen as an attractive feature of beauty box subscription services, but this approach isn’t possible for all categories.[Image Credit: © McKinsey & Company]
Krista Garcia, "Five Charts: How Consumers Really Feel About Subscriptions", eMarketer , October 18, 2018, © eMarketer Inc
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