How a Fulfillment Center Can Streamline Your Subscription Box

Outsource subscription box fulfillment and focus on growth. Learn how a fulfillment center can save time, reduce costs, and help you scale your business. 

As your subscription box business grows, a small side hustle can quickly become a full-time job. You’re sourcing products, packing boxes, managing inventory, and shipping orders. Oh, and don’t forget marketing – your number one job as a subscription box owner. 

The demands on your time grow even faster than your subscriber count. Soon you need to get some help. That could mean hiring. An in-person team member or a virtual assistant (VA) is typically a subscription box owner’s first hire. 

Learn what a VA can do for your subscription box business. 

As your subscriber count grows and the amount of time you dedicate to fulfillment increases, you might consider outsourcing fulfillment to a dedicated fulfillment center. 

Outsourcing to a fulfillment center can be business (and life) changing. It can allow you to scale more quickly and efficiently. It can also give you back time to focus on marketing, strategy, and all the things only you, as the CEO of your subscription box business, can do. 

But outsourcing fulfillment isn’t right for every subscription box business. Or every subscription box owner. Ryan Culver of Lessgistics, a 3rd party fulfillment center, shares his expertise with us to help you make an informed decision. 

What is a 3rd party fulfillment center? 

Ryan started Lessgistics in 2020 to help subscription box owners. A former subscription box owner himself, Ryan brings a deep understanding of the industry and the unique challenges subscription box owners face. 

Inside their 60,000-square-foot facility, Ryan and his team support subscription box businesses ranging from 250 to more than 5,000 subscribers. They handle inventory management, packing, and shipping, following detailed instructions provided by business owners. 

Lessgistics can handle variations in size, color, or quantity. They handle customer service issues and stay in close contact with their subscription box owner partners. 

For more about what it’s like to work with a 3rd party fulfillment center, listen to my interview with Launch Your Box & Scale Your Box member Stacey Collins on episode 135 of the Launch Your Box podcast.

Why should you consider outsourcing fulfillment?   

What if you never had to pack and ship your subscription boxes again? And what if you were still confident your subscribers were getting the experience you so carefully curated for them? 

Outsourcing fulfillment is about more than just freeing up your time. 

It’s about you shifting your focus back to the parts of your business that truly need your attention. Things like marketing, customer relationships, and long-term growth strategies. 

Working with a 3rd party fulfillment center has many benefits, including: 

• Taking advantage of the economies of scale a fulfillment center brings. 
• Getting your business out of your house. 
• Getting access to better shipping rates – subscription box owners benefit from 3rd party fulfillment centers’ buying power with shipping companies. 

How much does a 3rd party fulfillment center charge? 

We just talked about how much you can save on shipping costs by taking advantage of a fulfillment center’s buying power. In fact, the volume discounts Lessgistics can get for its subscription box partners usually pay for the cost of the fulfillment center. Now that’s a no-brainer! 

Fulfillment centers price jobs based on the number of “touches” needed. Each item in the box is a touch. If you use filler or tissue, stickers, an insert, etc., each of those is a touch. 

Ryan priced out fulfillment for an example subscription box business. This subscription box has 500 subscribers and each box contains five items, an insert, and a sticker. Ryan’s price for Lessgistics to fulfill this subscription box would be $2.25 per box. 

When I compare my overhead costs – rent, packing supplies, staff costs – to the cost of fulfilling with Lessgistics, it’s a no-brainer. 

My subscription box, The Monogram Box™, is fully customized, including one personalized item every month. This means it has to be fulfilled in-house. But if I could, I’d outsource fulfillment in a heartbeat! 

Does your subscription box include variations? Check out this blog post for tips on managing them effectively. 

When is the right time to outsource fulfillment? 

Ryan and I agree that it is important for you to have time and experience fulfilling your subscription boxes yourself before outsourcing to a fulfillment center. This hands-on experience is invaluable, allowing you to understand your needs, your process, and what you’ll require of a fulfillment center. 

So, when should you consider outsourcing fulfillment? 

• When you’re running out of space. If your home or office space is overwhelmed with inventory and packing materials, it’s time to look for outside help. 
• When your time is stretched too thin. If packing and shipping take up too much of your day, making it hard to focus on marketing, customer service, and product development, outsourcing can be a game-changer. 
• When you want to grow. Outsourcing allows you to scale without sacrificing the subscriber experience or burning out. 

What should you look for in a fulfillment center?    

Not all fulfillment centers provide the same level of service. Selecting the right partner is critical. Choose a center that understands your brand’s needs and delivers the same level of quality and care you would. 

Ask questions like: 

• How do you manage inventory? 
• Can you incorporate custom branding elements in packaging? 
• How do you handle potential shipping issues? 
• Can you scale with me as my business grows? 

It can be hard to let go of the control you have when you fulfill your subscription boxes yourself. Asking these questions helps ensure that your fulfillment partner aligns with your values and shares your commitment to providing an exceptional subscriber experience. 

Outsourcing your subscription box fulfillment can feel like taking a big leap. And it is. It can also be one of the most impactful decisions you can make for your business. Consider it an investment in your future growth and an opportunity to focus on the things that will help you achieve that growth.