British online buyers spend more than 2.5 billion euros on delivery subscriptions annually

May 22, 2018

We said it before, and we’ll say it again: delivery subscriptions are the way forward. A new study by Whistl now shows that British online buyers are spending close to 2.5 billion euros on delivery subscriptions per year. On a side note: these include both ‘free delivery programs’ such as Amazon Prime and subscription box services such as Glossybox – two very different products in our opinion. Still, the results show that e-commerce is moving more and more from a transactional to a recurring business.

Traffic on the rise

The study comes shortly after findings from Hitwise, who analyse e-commerce visitor statistics. The company reports a 30% increase in hits to subscription box websites in 2017, when compared to 2016. In total, the sites represent 76.7 million hits, “making it one of the fastest growing retail verticals in the UK”. Key segments driving this growth are 18-24 year olds, 45+ consumers and male shoppers.

How much do consumers spend?

On average, the British subscribers spend £60 (€68) per year. Around 1.5 million British men are big spenders, with over £300 spent annually (€342). Ultimately all this spending should lead to even more saving for subscribers. Is this true? Well, members of Amazon Prime save £165 (€188) on average, offsetting the £95 price-tag. This closely aligns with another recent study by JPMorgan, who claim that Amazon Prime represents over $785 in value. This would more than justify the Prime’s recent price increase from $99 per year to $119 – mostly caused by rising shipping costs.

What services are most popular?

61,4% of respondents in the study signed up for Amazon Prime. Other popular services included ‘healthy snack box’ Graze (12.3%), delivery subscription nextunlimited (9.7%), ASOS Premier (8.8%), coffee subscription Pact Coffee (8.5%) and the beauty product of Glossybox (7.8%).

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Why are customers signing up?

Topping the list of reasons to subscribe is value for money (60%). Convenience (45%) is a strong second driver of subscriptions. Even more interesting is the fact that 20% of consumer expect retailers to have a subscription on offer, causing them to shop elsewhere if retailers don’t. To further strengthen the business care for retailers: 48,9% of consumers say they buy items they would not, if it wasn’t for their subscription.

More about delivery subscriptions?

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