How to Start a Subscription Box Business: 5 Simple Steps

Did you know that the subscription box market is projected to reach an estimated worth of £1.843.9 billion by 2025? That’s an increase of over £470,000 since 2020! Why such rapid growth? Since the COVID-19 pandemic, more consumers than ever have embraced the excitement of having their favourite products delivered straight to their door on a regular basis.

The appeal lies in a stress-free experience, combining the ease of online shopping with timely deliveries. With a subscription, consumers can simply set it and forget it, knowing that the products they need will arrive right on time, whether it’s weekly, monthly, bi-monthly or a few times a year!

In this blog, we’ll share our top tips on how to start a subscription box business, from choosing your niche to partnering with a reputable fulfilment provider.

What is a Subscription Box Business?

A subscription box business model involves customers paying a weekly, monthly or yearly fee in exchange for your products. This is a great way for businesses to create a steady income stream, retaining customers rather than re-engaging them more frequently.

As subscription boxes have grown in popularity, a wide variety of options are now available. These include snacks, flowers, cocktail-making kits, dog food, cosmetics, skincare, books and so much more!

The customer experience journey:

• Sign up: Customers subscribe to the service, often through a digital platform. During this stage, they will provide their personal information and payment details.
• Customise Your Order: Depending on the type of subscription service, customers may be requested to complete a brief survey to tailor their box to their preferences.
• Recurring Delivery: Products are delivered on a regular schedule, eliminating the need for customers to reorder each time.
• Customer Service: Ongoing customer support is available to address any issues promptly and efficiently.
• Renewal/Cancellation: Subscriptions usually renew automatically, however, customers can often cancel their plan at any time via their account settings.

Is a Subscription Box Business Profitable?

If you run a successful eCommerce store and are considering whether adopting a subscription box model could be beneficial, here are some key advantages for business owners.

1. Attract New Customers & Keep Existing Ones!

Thanks to the recurring nature of subscription boxes, businesses can offer a range of products at more affordable prices. By bundling these products at a reduced cost, you can encourage repeat purchases and build strong, lasting customer relationships.

2. Accurately Predict Revenue

Being able to accurately predict how much money will be entering your business account every month can help you streamline numerous aspects of your operations, from inventory planning to forecasting. It can also help you determine how much you can afford to reinvest into the growth of your brand.

3. Simpler Upselling/Cross-Selling

Adopting a subscription box business model places you in a unique position. Because you have continuous contact and existing trust with your customers, you can market additional products to them more easily. They already know you provide a valuable service – so why wouldn’t they utilise you further?

How to Start a Subscription Box Service: 5 Simple Steps

Every successful business venture has to start somewhere.

Below, we’ve outlined five simple steps you can take to begin a successful subscription box small business.

1. Choose Your Niche

Whether you’re expanding your existing business or starting from scratch, it’s crucial to identify what distinguishes you from your competitors.

When choosing your niche, aim to be as specific as possible. The more specialised your box is, the easier it will be to curate products that cater to your target market.

2. Design Your Box

Don’t underestimate the power of packaging!

Selecting the perfect products is crucial, but the box itself can elevate the customer experience. According to a recent study, 52% of online are more likely to make a repeat purchase from a company that uses bespoke packaging. Bespoke boxes transform a simple delivery into an exciting surprise. Not only can they reflect your brand’s personality, but they can also showcase your commitment to providing a high-quality service, translating into increased customer satisfaction and brand loyalty.

At JEM Marketing & Fulfilment Services Ltd., we’re pleased to provide our clients with bespoke packing and gift-wrapping services. To find out more about how we can assist you in crafting subscription boxes that stand out in a crowded marketplace, please get in touch with our team today.

3. Price Your Service

Pricing is a crucial factor that must reflect the value of the products within the box, whilst remaining attractive to your target market. To achieve this, consider the following steps:

• Market Research: Conduct thorough market research to understand how much your competitors charge for a similar service. Analyse what they offer, their price points and the perceived value from the customer’s perspective.
• Value Proposition: Ensure your pricing strategy communicates the value proposition of your subscription box. Highlight any unique features, exclusive products or added benefits that set your box apart from competitors.
• Cost Analysis: Calculate the cost of creating, marketing and delivering your subscription box. This includes sourcing products, packaging, shipping and overhead costs. Ensure your pricing covers these costs while allowing for a healthy profit margin.
• Subscription Tiers: Consider offering multiple subscription tiers to cater to different customer segments. For example, you could offer a basic subscription, a premium and a deluxe box, each with varying product quantities and exclusive items.

4. Market Your Box

Effective marketing and promotion are crucial for attracting loyal subscribers.

Utilise popular social media platforms to create engaging content that resonates with your target audience. Regularly post updates, share teasers and run giveaways to boost interaction and brand awareness.

Partner with influencers who have a strong following within your chosen demographic. These collaborations can assist you in tapping into a larger audience and building trust quickly, as influencer recommendations are often perceived as more genuine and trustworthy.

To nurture leads and maintain engagement with your audience, develop an effective email marketing campaign. Ensure they are visually appealing and provide value to the reader.

5. Choose a Reputable Fulfilment Provider

When it comes to subscription boxes, efficient fulfilment is a non-negotiable.

Some subscription boxes contain essential items that must be delivered promptly to meet customer needs. Failing to meet this expectation could result in a negative experience. Therefore, a streamlined and reliable fulfilment process is crucial for maintaining customer satisfaction and ensuring the success of your business.

At JEM Marketing and Fulfilment Services Ltd., our swift and efficient subscription box fulfilment service is on hand to ensure your customers receive their packages on time and in immaculate condition. We’ll pick, pack and dispatch your orders with the utmost care, enhancing customer satisfaction and keeping them coming back time and time again.

Are you curious about how we can support you in starting a subscription box business? Please get in touch. Call us on 01483 204479 and speak to one of our knowledgeable advisors today. Alternatively, simply fill out the form below, and we’ll get back to you shortly.