E-commerce retailers are getting consumers to shop online for everyday products -- here's how

Bii us online subscription service 1BI IntelligenceSubscription services are a popular way for shoppers to receive everyday products on a recurring basis.

From cosmetics to disposable raisors, personal care items are increasingly being delivered to consumers’ doorsteps as more online retailers adopt subscription services.
Nearly 40% of US consumers who regularly purchase health and personal care products online say they’re signed up for at least one subscription e-commerce service.
Consumers largely sign up for subscription e-commerce services for the time-saving benefits. And when it comes to products that consumers use regularly — such as those that fall under the health and personal care category — subscription services remove the need of having to make frequent trips to the store.

But besides accommodating consumers’ busy lifestyles, retailers are seeing added benefits: They’re earning more revenue and building customer loyalty. For example, Dollar Shave Club, which uses the subscription model to replenish men’s grooming products, expects revenue for 2015 to top $US140 million, up from $US65 million in 2014.

In an in-depth report, BI Intelligence looks at how retailers like Amazon and Sephora are using subscription-based models to sell and distribute health and personal care products in ways that are more convenient for consumers. We analyse all the factors that drive consumers to shop online for everyday products, and we look at which CPG brands and retailers are the most digitally savvy.

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Here are some of the key findings explored in the report:

In full, the report:

Looks at how new e-commerce models, especially subscription services, have helped drive an increase in online shopping in this category

To access the full report from BI Intelligence, sign up for a 14-day trial here. Members can sign up to gain access to new in-depth reports, hundreds of charts, as well as daily newsletters on the digital industry.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

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