Since the launch of BirchBox in 2010, we now have an endless amount of new subscription box companies in the market.

While initially only catering to beauty products, there are now subscription boxes that are available for almost every product. These subscription boxes can range from food to toys; subscription boxes are everywhere.

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

Why has it become a popular business model?

Entrepreneurial Experience

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

It Requires Less Capital

For any business, a certain amount of capital is necessary, but with the subscription box 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, subscription boxes perfectly tap into them and showcase just how valuable they are. From books to food, you can find subscription programs available to a wide range of 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 every month.

Depending on how you market and create value for your business, it can become a long term and exponential revenue-generating model.

Low Costs of Inventory

Subscription boxes are associated with low costs of inventory, largely because there is no need for surplus inventory. This reduces the need for storage and dramatically 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 of value for the cost paid. Since items in the box are curated according to a subscriber’s interest, the price 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 build brand image and trust.

Exclusivity

Many people love the exclusivity that individual 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, subscription services are good value for consumers and businesses; you only have to take a look at the examples to figure out why.

If you can succeed in this competitive but straightforward 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!

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