Photo: Mikhail Nilov on Pexels
Subscription boxes have been growing in popularity over the last few years. These are boxes which contain a variety of products that are delivered to customers on a regular basis (usually every month or every couple months). Just what does it take to start a subscription box business? Here we detail some of the most important steps.
Identify Your Product
Subscription boxes can contain all kinds of products. Some popular types of products sold in subscription boxes include:
- Books
- Cosmetics (e.g. make-up, skincare products)
- Food & drink (such as candy, wines etc.)
- Clothing
- Accessories
- Flowers
It’s best to choose a product that you are knowledgeable about, that you are also passionate about. And you will need to make sure it is a product that people will want to receive regularly.
Research The Competition
Before you get started, it’s important to research your prospective competitors to see what products they are offering, how much they are charging and the types of marketing strategies they are using. This could provide ideas that you can use within your own business. At the same time, research will help you to figure out ways of setting yourself apart. What products are they not providing? Where are they falling short in their customer service or in promoting their product? It could be worth subscribing to a few subscription box businesses for a couple months to conduct this research.
Work Out Pricing and Payment Options
You will also need to decide exactly how much to charge customers for your service. This should be enough to make a profit without being too high so that you can attract customers. Subscription payments are typically paid via debit card. You can accept credit cards, but you will usually need to use a high risk merchant account. Humbolt is a high risk payment processor that you could consider using.
Build Your Website
Having a functional, attractive and easy to use website will be important for converting online customers, promoting and providing information about your subscription box service and proving that you are legitimate. It’s worth investing in a high quality website with clear product information and price plan information. You can build a website yourself, or hire a developer depending on your budget.
Choose The Right Packaging
The packaging will be a key factor in the marketing and sales of your products. Consider that certain types of products like food or fragile items will need to be packaged in a certain way to prevent damage. Investing in branded boxes could help to strengthen your brand identity as well as make your company appear more professional.
Find The Right Courier
You will need to find a company to ship your product to each customer. This needs to be a reliable courier service that will guarantee arrival of the subscription box on the day that it is due. Take the time to research courier services online using sites like Parcel Broker. You can also pay a company to stock and even package your subscription boxes (this may not be necessary in the beginning, but if your company grows, it may become essential to keep on top of deliveries).
Plan Out Your Marketing
Research The Competition
Before you get started, it’s important to research your prospective competitors to see what products they are offering, how much they are charging and the types of marketing strategies they are using. This could provide ideas that you can use within your own business. At the same time, research will help you to figure out ways of setting yourself apart. What products are they not providing? Where are they falling short in their customer service or in promoting their product? It could be worth subscribing to a few subscription box businesses for a couple months to conduct this research.
Work Out Pricing and Payment Options
You will also need to decide exactly how much to charge customers for your service. This should be enough to make a profit without being too high so that you can attract customers. Subscription payments are typically paid via debit card. You can accept credit cards, but you will usually need to use a high risk merchant account. Humbolt is a high risk payment processor that you could consider using.
Build Your Website
Having a functional, attractive and easy to use website will be important for converting online customers, promoting and providing information about your subscription box service and proving that you are legitimate. It’s worth investing in a high quality website with clear product information and price plan information. You can build a website yourself, or hire a developer depending on your budget.
Choose The Right Packaging
The packaging will be a key factor in the marketing and sales of your products. Consider that certain types of products like food or fragile items will need to be packaged in a certain way to prevent damage. Investing in branded boxes could help to strengthen your brand identity as well as make your company appear more professional.
Find The Right Courier
You will need to find a company to ship your product to each customer. This needs to be a reliable courier service that will guarantee arrival of the subscription box on the day that it is due. Take the time to research courier services online using sites like Parcel Broker. You can also pay a company to stock and even package your subscription boxes (this may not be necessary in the beginning, but if your company grows, it may become essential to keep on top of deliveries).
Plan Out Your Marketing
You’ll need to invest a good deal of money into marketing in order to get the word about your service and attract new customers and keep existing customers loyal. You can attract customers through promotional campaigns and emails, social media ads, SEO and flyers. Your can retain and keep customers loyal by providing perks such as loyalty discounts, special gifts, and referral credits for members.
This is a contributed post.
1 comment
Great tips for anyone who is heading toward a business like this.
Post a Comment