How Ecommerce Subscription Models Are Changing the Online Retail Game

In 2007, Amazon launched its Subscribe and Save program, marking a major turning point in ecommerce subscription models. Customers could receive regular product deliveries at a discount—a concept that has only grown in popularity.

The subscription box game has seen serious growth since then, particularly during the height of the COVID pandemic. In 2021, existing subscription-based services grew by 31%, and their popularity is showing no signs of slowing down. 

Whether you’re a DTC brand, a growing Shopify store, or a niche product seller, exploring ecommerce subscription models could be your next strategic growth move. In this guide, we’ll break down the types of models, what customers expect, and how to execute your subscription logistics flawlessly.

Explore more: Wayfindr’s Flexible 4PL Logistics Services

What are the two types of subscription services?

Regular refills

With a regular refill model, you are giving your customer the option to subscribe and receive a favorite product every month or so(depending on what you offer). Typically, this is coupled with a discount for the customer. 

Best for: Consumable or daily-use products
Example: Amazon’s Subscribe & Save

How to handle refill subscription box logistics

With this model, logistics i.e. fulfillment can in most cases be handled by a third-party provider, such as a 3PL fulfillment center or 4PL. 

Fulfillment will be carried out just as it is with regular orders- you just need to make sure that your order management software is capable of keeping track of regular refills, customer billing info, and when to restock subscription-related inventory.

This can be managed at least partially by some 3PLs, with some of the day-to-day tasks and communications falling to you, or you can hire a 4PL to take care of every detail for you.

Keep in mind: If your order volume for subscriptions is small, say, under 100 per month, it may make more sense to fulfill in-house. You can rent out a space, or fulfill from anywhere that works for your business.

Once you start to grow, you’ll want to start searching for reliable logistics partners to take the logistics load off of your plate.

RELATED: Product Bundling Strategies for Success in 2025

Custom boxes

Studies show that customers prefer a customized subscription service experience. Although the customization element provides an added challenge for logistics, many companies like FabFitFun have been able to hack it with swinging success.

Best for: Lifestyle, wellness, fashion, or novelty products
Example: FabFitFun, BarkBox

How to handle custom subscription box logistics

Unfortunately, you will need to do at least a portion of the fulfillment work in-house. Since this type of highly customized product requires a level of artistry and know-how from you, your fulfillment provider simply won’t be much help in this area.

You can choose to fulfill orders with curated subscription boxes in-house, while the rest of your orders are fulfilled by a third party. Or, you can do the selection part before handing it off to your third party for fulfillment, Allowing them to package, label, and ship out the pre-selected goods.

This is a conversation you need to have with any potential logistics partner. If you expect them to help, you and the provider need to work out exactly what roles each of you will be taking. 

What’s important to your customers?

 Subscriptions are a recurring source of income. You want to keep those customers happy so they don’t cancel the subscription.

What are the important points to execute on?

Subscription products arrive on time 

Many of these subscriptions include treatments or products customers use on a daily basis. This could include something more topical like skincare, or health products like supplements. 

Even if most of these products are life-or-death, your customers rely on having a never-ending supply. Reliable logistics is crucial to please the customer — they don’t want to run out!

Convenience and cost savings

It’s important that your customers feel that they are getting added value in the form of not having to remember to purchase something before they run out, and saving money with a discount. These two factors are key to attracting subscription customers.

Even after you’ve sold the subscription, you need to continue to deliver on those promises. That means not adding costs or allowing a shipment to be delayed. If your customer sees the cost has risen, or delivery times are no longer reliable, they may go elsewhere for their product.

Inventory management

Since they don’t want to run out, you shouldn’t, either! 

You’ll need a trusted inventory management system; for all your orders, but particularly accounting for the recurring subscription orders.

Why 4PL for subscriptions?

Above, we mentioned 4PL service as a solution to simplifying your subscription box fulfillment. Why is the 4PL such a good logistics partner to have for subscription fulfillment?

When you have subscriptions that need to go out on a regular basis, you cannot afford to make mistakes when it comes to managing inventory, packaging orders, and executing last-mile delivery. The 4PL works with you on every detail of those processes. Plus, at Wayfindr (formerly CBIP Logistics), we manage it all for you from our own integrated platform. That means visibility on delivery status for your customers, stats and KPI tracking, and stock management — all that you need, viewable 24/7 on Wayfindr’s client platform.

If you are concerned about us not having the right services for your needs, don’t sweat it: Since we are a 4PL logisitics, we work through a network of logistics providers all around the globe. That means that if one fulfillment center cannot meet your demands for kitting subscription boxes, we will set you up with another, and go in to facilitate things in the fulfillment center ourselves.

Interested in a free consultation call with a Wayfindr expert? Reach out today.