There’s no time like the present.
If you’ve always wanted to start your own subscription box, now’s the time to do it. It’s the latest craze for finding and sourcing exciting products.
All you have to do is pick your niche and run with it. While you’ll have some competition, it’s still early days for this part of the market.
Let’s check out how to start your own subscription box company.
What is a Subscription Box?
The first thing you’ll need to do is research everything there is to know about what a subscription box is. Let’s get started with this.
Wikipedia explains what a subscription box business is. To define a company in this way, it has to have a recurring physical delivery of products that fit into a particular niche of the market.
This type of business follows a specific marketing strategy that reflects a distinct method of distributing your product. You would consider your company to be a subscription-based e-commerce business under this umbrella.
With this, you can target a large number of clients who fall within your desired niche. Your service will cater to their unique interests and solely focus on those as your way of making a profit.
It’s hard to do an extensive amount of research on how to start a subscription box company because there exists little data to assist you. However, it is currently speculated that at least 600 subscription services are distributing their products in America alone.
Within your niche you can experiment with different price points, depending on the quality of your product and the difficulty you have sourcing it. This business model allows you to reach a high margin of different economic backgrounds.
How to Start a Company
When beginning your subscription box business, you have to start with a good idea. Crate Joy explains that finding your niche and sticking to it is inherent to being successful and profitable.
You’ll also want to be as specific as possible with your niche. If you like makeup, don’t just settle with this as your niche. Choose a particular area of makeup, like lipstick or foundation.
When starting a company, you need to know who your competitors are. Once you’ve picked your niche, you can research who else is operating a subscription box in this category. Ask questions like how many boxes do they currently offer? How much is their monthly subscription? How is what you offer going to be different?
Pinpointing your customer is essential to getting your business off the ground. The more you know about your customer, the better you’ll be able to serve them. Find out information like how old are they? Where do they usually like to shop? What social media do they use?
Pricing your box is an important step. This determines your target socioeconomic circle. Let’s take a look at how to calculate the pricing of your box.
How to Calculate your Pricing
Alicia Doiron of Lemonstand gives an in-depth explanation on how to work out exactly what you want to charge for each box you send out. This is a complicated aspect of maintaining your business, so you’ll want to make sure you get it right.
First, you need to consider if you want to use a term discount. The better taken care of your customer feels, the more likely they are to keep coming back. Offering long-standing customers a discount off their subscription for being loyal to you is a great way to solidify their commitment. The longer they have been with you, the greater a discount they should get.
Secondly, you should decide whether your delivery rate is going to be month to month or a sign-up minimum of six months or so. You can even offer an annual subscription where customers sign up to receive one box a month for a year.
If you’re going to offer these options, you need to take shipping into account. The shipping fee can also be used to encourage potential customers to sign up for longer periods of time. You can offer free shipping if they commit to six months or even a year.
Running a Subscription Box Company
A monthly subscription box is the best business to start right now. It’s a trending niche currently online, and it’s still in its teething years. This means that there aren’t enough people doing it for the market to be saturated yet.
Make the most of a new niche opening in the online world of shopping and start a subscription box service. Chances are, you’ll never look back.
Feature image via Stay at Home Mum