10 Things To Know Before Starting A Subscription Box

Find Your Niche!

There are hundreds of monthly subscription boxes today. Moreover, there are thousands of eCommerce stores that could start offering subscription boxes tomorrow.

To stay ahead of the game, you need to find a niche.

Note: Research your current competitors and their customers, as well as your own. There are numerous tools for researching leads and competitors. Do your homework and identify opportunities. Look for opportunities and cross-sections that no one is currently pursuing in all that information.

These may consist of certain subsets of product categories or general themes for your subscription box.

For example, are you looking to open a skincare subscription box? Don't just rely on regular creams and serums — think more expansively.

Items you could include in this theme could be towels, bathrobes or hair accessories. Include everything that celebrates your niche and creates an unforgettable experience.

Find out what your target customers are interested in and like, and develop an idea of how your subscription box can offer this.

Establish Total Costs

Once you have decided on the contents of your subscription box, you need to consider how you will afford them.

The important point here is to research your total costs, not your monthly costs.

Setting the price depends on two factors: what customers can afford and what your business can afford.

The quality of the goods you intend to sell and the prices of similar subscription boxes in terms of quality, but not necessarily concept, can be used to determine customer price sensitivity.

Then, work backwards to determine what you can include and how luxurious your subscription box can be.

This involves creating a launch plan for your subscription box and getting a clear idea of which products you can afford to include.

The major considerations that individuals lose sight of when they embark on their subscription box business include

-Product Cost Range

Most boxes contain one or two premium items and some smaller items.

You will have to strike a balance every month, so you will need choices in various price brackets and a plan!

-Box Costs

One aspect of the monthly subscription box trend is how cool the boxes are when they arrive. Personalised boxes and packaging are likely to be in demand.

Make sure you have a rough idea of your budget for creating and producing custom boxes and packaging.

It is difficult to put a price on custom packaging as the cost depends on your budget, needs and designs.

-Fulfillment And Shipping Expenses

The positive aspect of this is that these costs per box reduce when you scale up.

Using a third-party fulfilment service can also be an option, as they can offer good rates with carriers and utilise the custom boxes and packaging that you designed.

-Software Fees

You will also need an e-commerce store and payment and customer care services.

You will find all the assistance you need, even for a one-person business, but it will cost you.

Remember to maintain your marketing plans.

• Email marketing

• Website maintenance

• And other standard business processes

-Customer Acquisition

To get new customers, you will need to regularly invest money in advertisements and social media.

Work with a marketer to develop a strategy based on your brand.

Of course, you can try to generate organic traffic using various social media platforms free of charge.

However, organic growth can be time-consuming and labour-intensive with no guarantee of traffic or revenue.

Hiring a marketer will guarantee brand success and exposure via other marketing platforms, not just social media.

- High-quality Photos

Presentation is everything, particularly given the competition in the e-commerce sector.

If your photos look poor, people will assume that your products and service are poor too.

Customers' first impression of your products and service is through their computer screens, so make sure you give them a memorable experience.

Make sure you have good-quality photos not only of your products, but also of your custom boxes. This will give your customers a clear idea of what to expect from your service.

Consider these factors when brainstorming to ensure you have thought of everything before beginning your subscription box service.

First, Create A Prototype Subscription Box

You need a prototype subscription box for marketing purposes, and marketing is necessary to acquire customers.

The best way to do this is to base it on your monthly budget for boxes, so that when customers pre-order the first one, they receive the quality they anticipate.

Another reason to develop a prototype is that you can use it in videos and photos.

This will provide you with high-quality content to post online, which you can use to showcase products.

In the case of clothing subscription boxes, prototypes also come in handy, since you need to establish a rapport with a vendor — then you can share their size charts and prevent subscribers from receiving the wrong sizes!

Just as you wouldn't subscribe to a box without knowing what's inside, don't expect others to do the same.

Be Aware Of People's Expectations Of The First Box

People expect the first box to be discounted. A simple search will reveal that many companies offer 50% off the first subscription box, as well as future discounts if a customer refers other people to become subscribers.

This is an established trend, with some of the best search results dating back to 2015, when posts about free boxes first appeared.

Although free offers are becoming less popular, most boxes still provide a discount on the first one. You could consider a less expensive initial month, such as the one provided by Bean Box.

One issue with this is that it increases your customer acquisition costs, which can be intimidating.

Depending on your profit margin, it may take several months to convert a single customer into a profitable one. This should be factored into your overall marketing strategy and pricing.

Once you have determined that a customer is profitable, either after a specified number of months or after they have referred a certain number of friends to your service, target them.

Automatic billing will help you maintain momentum and transition customers to the full price, leaving you with fewer things to worry about.

Remember, Your Business Is A Business

You are a conventional business too. Do not cut corners when it comes to normal business procedures, such as having a business plan. Although your business model is new, there are still best practices available.

Take the conventional course of action and you will get to know your three Cs — company, customers and competitors — best.

The processes you undertake may differ depending on your products, sourcing, niche and customer profiles. Read magazines about major players in your industry to find out where to start.

Keep it visual!

Boxes are visual. To create a buzz, you have to display products, whether that's with custom colours and metallics or a cute logo on the top.

You can even cover the whole box in a picture to make it look and feel great.

The design of your subscription box should reflect your customers' preferences.

Go for a cute design if your customers know what 'kawaii' means, and use leather and chocolate colours for a more masculine look.

Your customers may be crazy about glitter or tech-savvy, in which case they will want smooth silver and clean edges to make them feel like they are in the future.

Your boxes will be the most effective form of marketing, showcasing your products clearly and effectively.

It is incredibly exciting and inviting when your subscription box matches the products.

Prioritise design and visuals. This will create magnificent images for your advertisements and social media.

Instagram and Pinterest are huge platforms for building a following around your style and content.

Intelligent Programmes Can Rescue Companies

Let's go back to your company as a business for a moment. Once you have those images and designs in place, you can start building your software stack.

The good news is that there are numerous e-commerce solutions that can handle much of the hard work for you.

Whether you go piecemeal or seek a complete system from a single provider, there are tools that can simplify the process of building your own site, adding automatic monthly or yearly billing and helping you to locate new products, among other things.

The first thing on your list should be a billing platform, either as part of your e-commerce package or as a separate accounting system.

This will keep your accounts in order and enable you to predict your revenue for the following month. You can also use it to offer deals and discounts to customers and restrict them to one coupon or deal per subscription.

Foster Community Growth

Community building is an excellent means of development. Once you launch, people will start posting questions, products and pictures, among other things.

Prepare a platform on which they can do this in advance.

This should not be limited to an FAQ page. Experiment with forums, commentary, and other networks to reach out, gather feedback, and enhance your operations.

Social networks are particularly effective when you encourage people to post or tweet about your company.

People want to express their views, and you can use this to your advantage. If you do it right, people will talk about you in a positive way.

If you take the time to create a custom box, you can design it in such a way that people will actually film and share their excitement at opening it.

One of the most effective forms of subscription box marketing is unboxing videos.

The Internet Is Forever

The internet is forever, so you have time. Plan your name and your site as something you want to do long term.

Choose something that you are passionate about and that is not confined to any product.

Consider it in the following way: Dollar Shave Club is the business concept, not the box.

You are building a brand that is not just the product in next month's subscription box. Choose a name that fits you and your business.

A word of caution: you want something that will still work in three years' time.

It must be something that you will still be interested in, and it must also appeal to you in the next few years.

For example, someone was selling a business idea for building subscription boxes, and the 'Start Your Own Subscription Box' business is currently located on an empty lot.

Nevertheless, it has been around on the internet for about three years and can still be found in certain search results.

Don't Give Up If You Fail The First Time

It's okay to fail.

This is one of the most difficult things for any entrepreneur to grasp, yet it is also one of the most crucial.

Things happen.

People may not like a product, or you may be late delivering things. It's okay.

The only way to learn is to try. Most people have things that they don't like or don't wear regularly — that's why you can instruct services like Blue Apron to avoid particular foods or repeat recipes.

The world is now a wonderful place where you can find an audience for virtually anything. It is your task to keep finding your audience and appealing to them in the most appropriate way.

If they are difficult to locate or unwilling to purchase what you are selling, it's time for a change. Vary your marketing, pricing or product to find the right balance.

Success is out there, and you can achieve it. Good luck!