Starting Your Own Subscription Box Business
Are you interested in starting your own subscription box business? Then you need to get started right now. With many brands expanding their businesses internationally and exploring the recurring benefits of subscription boxes, the time has never been better to start a subscription box business. In fact, the industry touched a new height with $15 million in sales in 2020.
So, here we’ve put together an article to walk you through the basics of setting up your own subscription box business and provide resources so you can get started quickly.
What Is A Subscription Box Business?
A subscription box is a type of e-commerce business model in which customers are billed on a recurring basis for access to a curated selection of products. The most common type of subscription box business is based on physical goods, such as clothes, beauty products, or food. But digital products like entertainment channels, online magazines, gaming portals, etc are also becoming increasingly popular in this model. The key is to offer the products with discounts and rebates.
You’re essentially starting your online store when you start a subscription box business. You’ll need to find a supplier of the products you want to sell and create a website or app to showcase your products and services. Then, you’ll need to create a subscription program and promote it to customers.
How To Start Your Own Subscription Box Business?
So the first thing to do when starting is to figure out the product category and supplier source. Here are a few things to consider while doing that.
1. Choose a niche: Choosing a specific niche in which your subscription box business can thrive is important. There are many different subscriptions, so finding one that will fit your product offerings and marketing strategy is key. For example, if you sell beauty boxes, you might choose to focus on specific brands or types of products that are generally over-priced in their retail model.
2. Research suppliers: Before signing any agreements with suppliers, it’s important to do your research first. This means assessing their products’ market viability, customer service, and delivery standards. It’s also important to ensure that the supplier is reputable and has a good track record.
Figuring out your products and supply chain is only step one. Step two involves:
- Figuring out how to get people to sign up for your box.
- Ensuring that your box is well-priced and attractive enough for customers to sign up for it.
How To Choose The Right Type Of Subscription Box For Your Business?
Moving on to deciding which type of subscription box is ideal for your business. The type of subscription box you choose should depend on your target audience, your budget, and the products you offer. Here are some of the most popular kinds of boxes:
1. Personalized Boxes: This subscription box is perfect for businesses with a personalized service or product focus. For example, a personalized crochet box would be an excellent option for your customers if you offer crochet tutorials. Customers can select the items they want to receive, and you get to customize the contents each month.
2. Sampler Boxes: This type of subscription box is perfect for businesses selling various products or services. For example, if you are a beauty salon, a sampler box could include hair products, makeup samples, etc. Your customers can enjoy trying out different products before deciding which ones they want to buy in full size.
3. Monthly Deals Boxes: This subscription box is perfect for businesses with seasonal products or services. For example, a monthly deals box would be perfect for your customers if you work at a bakery and offer monthly deals such as cake month or ice cream month. They can get discounts on products each month and decide which ones they want to buy in full size.
4. Gift Boxes: This subscription box is perfect for businesses selling gifts. Your customers can choose the items they want to receive, and you get to design the packaging yourself.
Pricing Your Subscription Boxes
One of the most important things to consider when pricing your subscription boxes is how many items you plan on including. If you have a limited number of products, it may be worth considering a lower price point. However, it may be worth increasing the price if you have a large selection or plan on including multiple items.
You also want to consider what type of box your business will be. If you’re offering a physical product, you’ll want to include shipping costs and other associated fees.
Once you’ve determined the cost of your subscription box and the number of items included, it’s time to figure out how often your customer should receive a box. Monthly boxes are typically more expensive than every other subscription box because they require more packaging and materials. This can mean higher production costs for you as the business owner. However, if your customers are happy with the frequency of their boxes and you produce high-quality products, monthly subscriptions may be your best option.
Marketing Your Subscription Box Business
There are many ways to market your box business, and the key is to find what works best for you. Here are some tips to get started:
- Start by researching subscription box companies that are similar to yours. This will help you learn what type of products your customers are likely to want and how to price your boxes appropriately.
- Create a strong branding strategy. Make sure your name is catchy and easy to remember, and create a logo and website that reflect this.
- Develop an effective marketing plan that includes social media, advertising, and PR.
- Ensure your boxes are delivered on time and in good condition. Make sure you have a good customer service policy in place if something goes wrong with a box.
How Subscription Management Platforms Can Help
The subscription economy is booming, and there are plenty of opportunities for entrepreneurs to get in on the action.
But one of the biggest challenges that entrepreneurs in this space face are managing their subscriptions. You have to keep track of who’s subscribed, what they’re subscribed to, when their subscriptions renew, and more. That’s where subscription management platforms come in. These platforms can help you manage your subscriptions and make sure your business runs smoothly.
There are a few things to look for when choosing a subscription management platform.
- First, make sure the platform integrates with your eCommerce platform. This will make it easy to manage your subscriptions and orders in one place.
- Second, look for a platform that offers powerful automation features. This will help you automate key tasks like billing and shipping so you can focus on running your business.
- Third, choose a platform that offers great customer support. This will be invaluable as you get started with your subscription box business and run into any challenges along the way.
Subscription management platforms like saaslogic can make all the difference in running a successful subscription box business. If you’re interested in exploring saaslogic and its features that can help take your subscription box business to the market quickly, get in touch with us today!
