Subscription boxes have grown exponentially in popularity in the past few years and have become a trending topic. It’s easy to see why; who wouldn’t want a convenient, affordable, and exciting box filled with things that they like to brighten up their day?
A subscription-based business model is certainly nothing new, but as our digital age brings about the profitability of revenue sources like ecommerce, it’s done the same for subscription boxes.
They can be tailored to practically any niche, from a gaming subscription box to boxes packed with cosmetics or puzzles. Consequently, if there’s an active online community for a genre, someone can create a successful subscription box service.
However, there’s a lot to consider before you do. So, here is the right way to begin your subscription box business endeavour.
Find the Right Niche
The extent of your business needs to make sense for a subscription-based model. In other words, you need to offer a product or service that will need to be replenished on a monthly or ongoing basis. Otherwise, it won’t be a reliable and profitable business model for long.
Your subscription box needs to stand out from others in the same or a different but similar genre; it needs to provide more value to fans of that niche. Accomplishing this can be done through extensive market research and hearing what the customer base says.
Even big companies like Nintendo have sold monthly subscription boxes in the past. There are countless profitable niche ideas that you can use to create a subscription box out of, including:
- Cosplay Box
- Comic Box
- Trading Card Box
- Board Game Box
- Skincare Cosmetic Box
Determine the Cost
After building the concept for your subscription box, you’ll need to establish a clear-cut and well-defined budget of what the package will include and how much it will cost you. It makes it easier to assess overall profitability.
An important note to remember is to research what your customers can afford, not just your business. The customers’ willingness to buy your product will be determined by the cost of the subscription box concerning the price and quality of goods you offer in it.
This gives you an idea of what you can include in your box. From there, you can begin to consider factors like:
- Product variety and price range
- Box costs
- Shipping charges
- Marketing expenditure
Build Your Brand
Branding is an essential part of building and growing any business or service. It aims to make people aware, share, and remember your service even after being exposed to it. Your branding needs to make a good, memorable first impression so that people learn to recognize you instantly.
Get in contact with media influencers or product reviewers on YouTube and Instagram if you want to market your box. If you manage to make a lasting impression that influences your customers with your product, they’ll likely talk about and share it, providing you with free advertising and awareness.
Create a Prototype
Marketing is required to get customers for your product, but you need to have a product ready to showcase. Many people believe that they need to start making subscription boxes before they begin marketing. However, that can slow down your progress in the long run, so what do you do?
Create a product prototype. The purpose of a prototype is to introduce potential customers to your subscription box, the items they’ll receive, and the quality they should expect.
Another way that prototypes are useful becomes apparent when you begin marketing — sending a prototype to influencers to review and share with their audiences. It’s easier for customers to buy your subscription box if they know what to expect on the inside.
Market Your Brand
Begin a Crowdfunding Campaign
A great way to start your endeavour, especially if you don’t have many resources to invest in the business, is to create a crowdfunding campaign on GoFundMe, Kickstarter, or Indiegogo.
It’s a clever way to determine if people would actually be interested and financially support your product while gaining constructive criticism, feedback, and some case on the side.
Build a Devoted Social Community
Subscription boxes aren’t just about the packages. If you want to be a successful business, you need to act like an actual business. One of the things you need to do is build a community where you can share new ideas or updates and do more than just post about a monthly box or what’s inside it.
Rather, build content that will allow you to engage with your audience and attract them towards your products. Its also necessary that you connect with your customers, whether it’s via comments, reviews, or online queries.
Provide Authentic Customer Service
Excellent customer service is a major factor that stands between the success of a new business and one that fails to thrive as it ignores its customer base. Investing in good, authentic customer service is crucial. When your customers need quick feedback to address their queries, but your customer service doesn’t reply or solve their problem, they likely won’t stick around any longer.