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

Especially with the exponentially growing reliance on e-commerce businesses during the pandemic, the popularity of subscription box services continues to be on the rise.

While BirchBox initially only catered to beauty products, there are now subscription boxes that are available for almost any product you can think of!

These subscription boxes can range from food to toys; subscription boxes are everywhere.

example of subscription box
Source: Wearth

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.

Not only are subscription boxes giving various brands promotional opportunities but your customers can enjoy a variety of products on a monthly or bi-weekly basis.

Adds Value in Niche Markets

When it comes to niche markets, subscription boxes perfectly tap into them and showcase just how valuable they are.

example of valuable subscription box
Source: BoxFox

From books to food, you can find subscription programs available to a wide range of interests.

Furthermore, you can create an entire experience within just one box. Whether that’s a skin care routine, a 3-course meal or adding to the collection of your customer’s library.

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, you can even plan for it accordingly and efficiently.

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

Especially with the uncertainties of COVID-19, a subscription box is a way to ensure steady growth for your business.

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.

You’re able to order your products accordingly while building lasting business relationships with a variety of brands.

Customer Experience

On the customer side of the business model, they 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.

Offering a variety of new products for your customers to try out automatically adds more value to your service from the consumer perspective.

Not only are they able to learn about new products and brands, but they’re also getting their money’s worth!

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.

Adding personalized messages and information to the interior of the box allows consumers to engage with your service in a more authentic way.

Source: Youtube

This is also beneficial to your brand exposure.

If the unboxing experience is exceptional, the chances of your customers sharing their experiences to online platforms such as Instagram or Youtube will gain your business more exposure!


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 for many consumers.

People can easily subscribe to a box and gain access to an exclusive club of like-minded individuals.

Let’s face it, we love sharing common interests with others. Having a box of products that your customers align themselves with makes them feel taken care of and heard!

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.

Especially now with customers having so much extra time on their hands working or learning from home, subscription boxes may just be the exciting experience they need in these somewhat dull times.

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 simply can’t during the pandemic, it can be very convenient to get a subscription box.

With so many benefits from a consumer and entrepreneurial perspective, 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!


Everything Custom Packaging

Learn everything you need to know about packaging here at PakFactory's Packaging academy.

Leave a Comment

pakfactory blog logo white

PakFactory’s blog is your go-to academic resource for everything you need to know about custom packaging. Our topics range from packaging tips to inspiration to help businesses kickstart their packaging project.

Get notified of new packaging tips on our blog!

©2023 PakFactory Inc. All Right Reserved.

Verified by MonsterInsights