Subscription boxes have gained popularity in the past couple of years. Nowadays, many people purchase subscription boxes just because they don’t have too much time for buying refills of their favorite products each month, or they like the overall experience of a subscription box.
But, what does it take to start a subscription box business? Well, not much, to be honest.
Let’s go through some of the essential steps you need to go through before you can put your business idea into reality.
Every business starts with a great idea, and the subscription box business is no exception. Just because there are hundreds of thousands of subscription boxes, you need to come up with a unique subscription box that targets a specific audience.
The biggest mistake that people make when they are starting their subscription box business is not targeting their audience with specific products. For example, if you have a general box that includes random products each month, it will be much harder to attract customers than having a men’s shaving box, for example.
To come up with a winning subscription box idea, you have to do a lot of research. You can check out FiveBoxes.com just to get some inspiration before deciding.
Price Your Subscription Box
The price of your subscription box can make or break your business. Mispricing your box is one of the biggest mistakes you can make when you are starting such a business.
To avoid such things, you need to come up with a price that is low enough to stay competitive but still makes money out of it. If you are new to the subscription box industry, a rule of thumb is to have at least a 40% profit margin in order to succeed.
To set the best price, you have to calculate all costs, such as product cost, box cost, packing materials, fulfillment costs, and transaction fees.
Create a Prototype Box
Another mistake that people make is quickly jumping into mass production without testing their original subscription box idea. Also, you don’t have to start selling before you start marketing your subscription box.
Creating a prototype box will give you the chance to understand the industry a bit better and get feedback from a few subscribers that receive the prototype box.
The prototype box doesn’t have to be the original box you plan to build, and the quantity and quality of the products can be different.
This phase is about learning the procedure behind the subscription box and choosing better products.
Prelaunch isn’t something new that is only for subscription boxes. Most businesses start a prelaunch campaign just to spread the word about their brand, collect email signups, gauge interest, and build a buzz around the upcoming launch.
At this phase, you have to use everything in your power to convince people to check out what your brand can offer. It is basically like an introduction where you want to meet your potential buyers.
Set Up Your Website
You cannot build a subscription box business without a professional-looking website. This is another handbrake for most entrepreneurs just because they don’t have the knowledge or experience behind building websites.
Fortunately, you don’t have to be a professional programmer to build your website for subscription boxes. You can use WordPress with and start with pre-made templates. If you can’t handle that, you should hire someone to take care of it.
Your website should be mobile-friendly and easy to use. Make sure you take professional photos of your subscription box and include them on your website.
Start Taking Orders and Shipping
After you’ve started your marketing campaign and built your website, all you need to do is check your results. If everything is done properly, you’ll see the orders flying in.
This doesn’t mean that it is the end of the road. You still have to fulfill orders and constantly optimize your marketing strategy and products to suit customer requirements.