How To Start a Subscription Box Business

It’s time to take your idea of starting a subscription box business from concept to reality. Subscription boxes are in hot demand today as consumers are looking to keep buying their favorites in as simple a way as possible. Anything you need can be purchased through a subscription these days, with more convenience than ever before. This trend offers many opportunities to companies that turn customers into repeat buyers, thereby increasing cash flow, boosting growth, and creating brand loyalty.

The subscription box business story is in the numbers. A Forbes article states that in April 2017, companies had roughly 5.7 million membership box customers and more than 2,000 membership box specialist co-ops, and the market continues to expand with new suppliers of various kinds and sizes of boxes.

Let’s look at the steps you need to take to set up your subscription box business, to transform your business into a recurring revenue engine.

Research Your Idea

A well-thought-out subscription box business can really stand out among all other approaches to shop. Subscription Boxes offer customers packaged solutions curated according to their needs, present new brands, and make the shopping experience fun and easy. It offers a stable monthly income as well as increase brand awareness.

It is essential to get your research done before venturing into the subscription box business. Plan your curation after accurately assessing the needs of the customer. When you have finalized on the items that you might want to ship in your subscription boxes, you have to do direct market research to find out what your potential clients think of it. Does it meet their needs? Will they want to receive this every month? What may be missing? 

Build The Prototype

Many retailers start off with sales right away once they have the required inventory, only to quickly realize their product doesn’t meet the customers’ expectations. It is always advisable to build a prototype box to introduce potential customers to the items that they will receive on a monthly basis.

It also can help you in your pre-launch campaign ads on your website, social media platforms and other sources to showcase what you bring to the table. The prototype will also lead your customers to study your product even before the launch and start to create a buzz.

Create a Pre-Launch Campaign and Webpage

The most important phase before a product launch is the building of buzz before the launch. The launch doesn’t go very well if you have not created a pre-Launch campaign as the audience is not aware of the details. You will have to start your pre-launch campaign at least 2-4 weeks before the launch. Any longer, the buzz will wane off and any closer will result in less time for the buzz to spread.

Building pre-launch awareness for your product doesn’t require you to reveal all the details about your product. You can engage your audience by talking about customers’ problems and showcasing use cases that demonstrate how your solution will solve those issues. Knowing your customer is more important than finding what product they need. It helps you to know how they conduct their business and how your solution will add value to their business model.

Build Customers Interest for your Product

It takes at least three times of hearing a marketing message before a customer actually responds. The first time they hear your Subscription Box business, they will often ignore it. The second time, they may become slightly interested and can forget. Later it begins to sink in their mind and will remember and act on it when the launch actually kicks off. A webpage with attractive details of your product can only bring in more customers by instilling their curiosity. Display complete details of your launch with enticing images of your prototype on your webpage.

Build Contacts To Kick off Sales

The more initial contacts you capture and build upon, the higher the chances that you’ll have early initial sales and sustain later. Your pre-launch campaign can include an email program and set up emails that will release on select dates and times chosen by you to send out to your list in hand. Add them to your database and start building on it.

Make sure your emails have several links for relevant information, because this is how you can gauge their interest and determine how to keep marketing to them. Keep your emails short and simple and to-the-point. Use them to educate and build relationships. This practice initiates your marketing journey to keep in touch with your contacts.

Finalize the Design, Approach and Work with Vendors

Having set the initial stages required for the launch, it is time to finalize the design and prepare for launch. Keep the market analysis in mind to check if your product meets the customers’ expectations. 

Approach vendors and start working with them if you are procuring your raw material from outside. Research earlier to find out cost-effective vendors who will deliver the inventory on time.

Decide on The Price, Launch and Take Orders.

Deciding on the right price for your product is the main step that determines how your customer votes on the worthiness of the product and the company. While it is easy to change your pricing any time later, not getting it right at the first place can drive customers away. Your price is part of your product and determines its value in the market. Combining different methods and tactics will help you to find the optimal price of the product.

Launching a product is a process and doesn’t happen right away. An important part of launching a product is planning, so ensure you have planned your launch strategy well in advance before the launch. This will help you to stay organized and right on point. Start shipping your first subscription boxes and observe the response in the market. Save the contacts for your initial orders in your customer database as these are the customers who will spread the goodness of your product.

Arka provides you customized packaging solutions for all your shipping needs. We have custom packaging options for any niche, whether you want custom shoe boxes or custom folding cartons, we can help create top-notch and sustainable packaging.

Keep these tips handy to kick start your dream of becoming a subscription box business entrepreneur!