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8 Reasons Why You Should Start a Subscription Box Business

Since the launch of BirchBox in 2010, we now have a dearth of subscription box companies to choose from.

While initially only catering to beauty products, there are now subscription boxes that are available for almost any product. From food to toys, subscription boxes are everywhere.

The popularity of subscription boxes have opened up a whole new market in consumer goods industry and if you play your cards right, you might be able to benefit from this business model.

Why has it become a popular business model? 

Entrepreneurial Experience

From an entrepreneurial point of view, a subscription box based business can be very attractive because:

It Requres Less Capital

For any business, a certain amount of capital is necessary but with this type of business model, less capital is required. Vendors are also more forthcoming as it means more publicity and buyers for their products.

Adds Value in Niche Markets

When it comes to niche markets, subscriptions boxes perfectly tap into them and showcase just how valuable they are. From books, to food, to lego, you can find subscription programs available to wide range of specific interests

Predictable and Measurable Revenue

Subscription businesses offer a measurable and predictable source of revenue. Based on the number of subscribers you get, it is possible to experience growth and raise profits on a monthly basis.

Depending on how you market & create value to your business, it can become a long term and exponential revenue generating machine.

Low Costs of Inventory

Subscription boxes are associated with low costs of inventory, largely because there is no need for surplus supplies. This reduces the need for storage and greatly cuts down on most overhead costs.

Consumer Experience

On the consumer side of the business model, consumers can benefit from:

Good Value for Money

A subscription box can offer a tremendous amount value for the cost payed. Since items in the box are curated according to a subscriber’s interest, the cost no longer becomes a big problem.

The Unboxing Experience

There is nothing better than getting a beautifully crafted & printed box delivered at your door with the products you know you’ll enjoy. Having the perfect unboxing experience for consumers will guarantee instant trust.


Many people love the exclusivity that certain subscription boxes have to offer. With access to limited edition items as well as certain themed items, a subscription box can be extremely attractive. People can easily subscribe to a box and gain access to an exclusive club of like minded individuals.

Targets Special Interests

Whether one likes comic books, cooking, cheeses, fresh food, makeup or more, a subscription box can be crafted that caters to almost any interest. Due to this reason, there are plenty of people who find subscription boxes pleasing.

Something to Look Forward To

Every month, a subscription box delivers something new. For anyone who doesn’t have the time to go out and shop for different products or doesn’t know where to get specific products from, it can be very convenient to get a subscription box.

With so many benefits on a consumer and entrepreneurial side, it’s no surprise why subscription boxes are becoming so popular.

At the end of the day, they’re good value for money for consumers and for businesses, you only have to take a look at the examples to figure out why.

If you can succeed in this simple but competitive marketplace, you can pretty much scale your business in any direction. Do you have products and vendors but require the final step of creating your box?

PakFactory can help you design & create the subscription box that’ll sure to get your subscribers to ordering more month by month!

About author

Mark Velarga is PakFactory's Director of Digital & Content Marketing. He writes about all things related to design, business and technology and how it serves value to customers, business owners, packaging designers and industry experts. Connect with him on Linkedin.
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