Before you embark on this journey, there are a few things you should know before starting a subscription box.<\/p>\n\n\n\n
Find your niche<\/h2>\n\n\n\n
There are hundreds of monthly subscription boxes available today. On top of that, there are thousands and thousands of eCommerce stores that could start building a subscription box tomorrow. <\/p>\n\n\n\n
For you to get ahead of the game, it\u2019s time to find a niche.<\/p>\n\n\n\n
Note:<\/strong> Look at your existing competitors in the space and the customers that you have, plus those your competitors have. Plenty of research tools for leads and competition exist. Fire up a few and do your homework.<\/em> Within all that data, you want to look for opportunities and intersections that people aren\u2019t targeting yet.<\/em><\/p>\n\n\n\n This can include specific subsets of product categories or broad themes that your subscription box.<\/p>\n\n\n For example; looking to start a skincare subscription box? Don’t stick to your usual creams and serums, think broader.<\/p>\n\n\n\n For this specific theme you could include things like towels, bathrobes or hair accessories. All things that compliment your niche, yet create a memorable experience. <\/p>\n\n\n\n See what customers like and are looking for, then create a concept for your subscription box that addresses it.<\/p>\n\n\n\n After you have the concept for your subscription box, it\u2019s time to determine what\u2019ll be in your box and how you can afford it.<\/p>\n\n\n\n Here, the big note is to research your total costs, not just monthly ones.<\/p>\n\n\n\n Establishing the price starts with two elements: what customers can afford and what your business can afford.<\/em><\/p>\n\n\n\n Customer price sensitivity can be determined by the quality of the goods you want to offer and the costs of similar subscription boxes – similar in quality, not necessarily in the concept area. <\/p>\n\n\n\n From there, you\u2019ll start working backward to see what products you can actually include and how fancy you can get with your subscription box.<\/p>\n\n\n\n This includes putting together a launch plan for your subscription box and having a good idea of what products you realistically are able to include. <\/p>\n\n\n\n Some of the big considerations people forget about when they start their subscription box include:<\/p>\n\n\n\n Many boxes will have one or two premium items and then some smaller items. <\/p>\n\n\n\n You\u2019ll need to balance that each month, so you\u2019ve got to have options in multiple price ranges and plan ahead!<\/p>\n\n\n\n Part of the monthly subscription box craze is how cool the boxes look when they show up. You\u2019re probably going to want a custom box and packaging. <\/p>\n\n\n\n Make sure you have a good idea of what your budget looks like to design and produce custom boxes and packaging. <\/p>\n\n\n\n Putting a specific price tag on custom packaging is difficult because the cost really depends on your budget, needs and designs! <\/p>\n\n\n\n Want to know more about custom packaging costs? Click here<\/a> to learn about the components you need to consider for your custom packaging costs. <\/p>\n\n\n\n The good news here is that once you grow large, these costs per box can decline. <\/p>\n\n\n\n You might also consider a third-party fulfillment service<\/a> that has good deals with carriers and can also use the custom boxes and packaging you created.<\/p>\n\n\n\n You\u2019ll want an e-commerce store as well as payment and customer service support. <\/p>\n\n\n\n There\u2019s plenty of help out there even for a business of 1, but it\u2019ll cost you.<\/p>\n\n\n\n Furthermore, make sure to keep up to date with your marketing strategies through;<\/p>\n\n\n\n You\u2019ll need to spend money regularly on ads and social media to acquire new customers. <\/p>\n\n\n\n Work with a marketer to see what you might want to start with based on your brand.<\/p>\n\n\n\n Of course you can try to obtain organic traffic through various social media platforms which will cost you nothing. <\/p>\n\n\n\n However, growing organically can take a lot of time and effort from your end with no guarantee of traffic or revenue. <\/p>\n\n\n\n Working with a marketer ensures you brand success and visibility through different marketing channels, beyond just social media. <\/p>\n\n\n\n Presentation is everything, especially with the competition that e-commerce presents. <\/p>\n\n\n\n If your photos look like junk, people will think you\u2019re sending them junk.<\/p>\n\n\n\n Customers’ first interaction with your products and service is through their computer screens, so make sure to leave them with a lasting impression. <\/p>\n\n\n Make sure you have high quality photos of not only your products but also your custom boxes, so your customers are getting a good idea of what they should expect from your service. <\/p>\n\n\n\n Make sure to refer to these consideration during your brain storming process to ensure you’re truly thinking of all aspects before starting your subscription box service. <\/p>\n\n\n\n Marketing requires a prototype subscription box, and you require marketing to get customers. <\/p>\n\n\n\n The first thing you want to do is put together a sample of your subscription box.<\/p>\n\n\n\n The best thing to do that is to build it out according to the budget you establish for your monthly boxes so that customers will get the quality they expect when they pre-order the first one.<\/em><\/p>\n\n\n\n Another reason to build out a prototype is that you can use it for videos and photos. <\/p>\n\n\n\n It\u2019ll give you a lot of great material to share online and you can use them for product demonstrations if you require.<\/p>\n\n\n\n For boxes that include clothes, prototypes also help because you have to create a relationship with a vendor \u2014 and then you can share their sizing charts to avoid upset subscribers getting the wrong sizes!<\/p>\n\n\n\n You wouldn\u2019t buy a subscription box without seeing what\u2019s on the inside, so don\u2019t expect others to.<\/p>\n\n\n\n People expect the first box at a discount. A quick search will find that many companies offer up to 50% off a first subscription box, plus future discounts if a customer gets other people to become subscribers too.<\/p>\n\n\n\n It\u2019s a trend that\u2019s been going on for quite some time, with even some of the top search results stretching back to 2015<\/a> for posts about boxes you can try for free.<\/p>\n\n\n\n While the \u201cfree\u201d offer is declining in popularity, most boxes still give some sort of discount on the first box. You might consider a cheaper first month, like the one offered by <\/em>Bean Box<\/em><\/a>.<\/em><\/p>\n\n\n\n A concern here is that you\u2019ll have higher acquisition costs, which can feel a bit scary.<\/p>\n\n\n Depending on your profit margin, it can take multiple months to turn an individual into a profitable customer. Plan for this in your overall marketing and price setting.<\/p>\n\n\n\n If you figure out that a customer becomes profitable after a certain number of months or after a certain number of friends they bring to your service, target those metrics.<\/p>\n\n\n\n Automatic billing can make it easy to keep up the momentum and move people to the full price, giving you a little less worry at the end of the day.<\/p>\n\n\n\n You are a traditional business too. Don\u2019t skimp on the regular business steps like having a business plan. While your business model may be very new, existing best practices are here to help.<\/p>\n\n\n\n Follow traditional steps, and you\u2019ll best understand your big 3 Cs: company, customers, and competitors.<\/p>\n\n\n\n The steps to follow can vary based on your products, sourcing methods, niche, customer profiles, and so much more. Read about big players in your industry to learn where to start.<\/p>\n\n\n\n Boxes are visual. You\u2019ve got to show off products to generate excitement, whether you\u2019re looking at custom colors and metallics, or a cute logo brandished across the top. <\/p>\n\n\n\n You can even wrap an entire box with an image to make it look and feel awesome.<\/p>\n\n\n\n The final design of your subscription box should match your customers.<\/em><\/p>\n\n\n\n Aim for a cute look if they understand what \u201ckawaii\u201d means, while you can turn to leather and chocolate colors for the \u201cmanlier\u201d options. <\/p>\n\n\n\n Your customers might love glitter or have a techy bend that needs sleek silver and clean lines to feel like the future.<\/p>\n\n\n\n The best marketing you\u2019ll get comes from how your boxes look and feel, with the products clear and visible.<\/em><\/p>\n\n\n\n It is incredibly exciting and inviting when your subscription box matches the products too. Check out this one from Teknikio.<\/a><\/p>\n\n\n Put design and visuals first. It\u2019ll generate great images for your ads as well as social media. <\/p>\n\n\n\n Instagram and Pinterest are big, big places to share boxes and create a following around your style and content.<\/p>\n\n\n\n Here\u2019s a smart PakFactory guide<\/a> to help you understand the writing process that leads to quality images and boxes.<\/p>\n\n\n\n Let\u2019s jump back to treating your company as a business for a second. Once you have those images and designs ready, it\u2019s time to build your software stack.<\/p>\n\n\n\n The great news for you right now is that there are plenty of e-commerce options that can do much of the heavy lifting for you.<\/p>\n\n\n\n Whether you go piecemeal or look for a total system from one provider, there are tools that can make it easy to build and launch your own website, incorporate automatic monthly or annual billing, support finding new products and just about everything else.<\/em><\/p>\n\n\n\n Top of your list should be a billing platform, either in your e-commerce suite or as a standalone accounting system. <\/p>\n\n\n\n It will keep your books straight and ensure you know your revenue for the next month. Plus, you can offer deals and discounts with the more advanced systems, even limiting a customer to one coupon or deal per subscription.<\/p>\n\n\n A few other items to consider when starting your subscription box service include:<\/p>\n\n\n\n The exact software mix is up to you, how comfortable you are with software and service, and how many people are in your organization.<\/p>\n\n\n\n Building a community is a terrific way to grow. After you launch, you\u2019re going to have people asking questions and sharing products and images and more. <\/p>\n\n\n\n Create a platform for them to do this ahead of time.<\/p>\n\n\n\n Allow for more than just an FAQ page. Try your hand at forums or blog posts with comments and other networks to help you reach out, collect feedback, and improve your operations.<\/p>\n\n\n\n Social networks are beneficial, especially if you ask people to post or tweet and mention your company name. <\/p>\n\n\n\n People want to share their opinions, and you can use this to your advantage. When you do things right, they\u2019ll have a lot of wonderful things to say about you.<\/p>\n\n\n\n If you\u2019re spending the time to create a custom box, you can design it in a way that people will actually film and share how are excited about opening it.<\/p>\n\n\n\n Unboxing videos<\/a> are one of the biggest opportunities for subscription box viral marketing.<\/p>\n\n\n\n Take your time because the Internet is forever. Plan your name and website for something that you are interested in doing for the long-haul. <\/p>\n\n\n\n Go for something that speaks to your passion and isn\u2019t limited to a specific product.<\/p>\n\n\n\n Think of it this way: Dollar Shave Club is the name of a business idea, not the specific box. <\/p>\n\n\n\n You\u2019re creating a brand that\u2019s more than just the product in next month\u2019s subscription box. Find a name that suits you without limiting you.<\/p>\n\n\n A word of warning: you want something that will work even in three years from now. <\/p>\n\n\n\n Not only should it be something that will still be relevant, but also it should be something that you\u2019re interested in for years to come.<\/p>\n\n\n\n![\"example](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_pure-biota-box-1024x844.png\")
Establish total costs<\/h2>\n\n\n\n
![\"Costs](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_savings.jpeg\")
<\/figure>\n\n\n\nProduct cost range<\/strong><\/h3>\n\n\n\n
Box costs<\/strong><\/h3>\n\n\n\n
Fulfillment and shipping costs<\/strong><\/h3>\n\n\n\n
Software fees<\/strong><\/h3>\n\n\n\n
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Customer acquisition<\/strong><\/h3>\n\n\n\n
High-quality photos<\/strong><\/h3>\n\n\n\n
![\"example](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_pink-drawer-rigid-box.jpg\")
Build a subscription box prototype first<\/h2>\n\n\n\n
Know people\u2019s first-box expectations<\/h2>\n\n\n\n
![\"example](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_sun-basket-box-set-682x1024.jpeg\")
Your business is a business<\/h2>\n\n\n\n
Keep it visual<\/h2>\n\n\n\n
![\"-\"](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_deren-teknikio-craft-box.jpg\")
Smart software saves businesses<\/h2>\n\n\n\n
![\"example](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_black-rigid-box-w-spot-uv.jpeg\")
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Foster community growth<\/h2>\n\n\n\n
The Internet is forever<\/h2>\n\n\n\n
![\"example](\"https:\/\/pakfactory-blog-media.s3.ca-central-1.amazonaws.com\/blog1\/wp-content\/uploads\/2023\/05\/uncategorized\/2023_05_lookfantastic-beauty-box-1024x1024.jpeg\")