How to Start A Subscription Box Business (A Complete Guide)

Subscription box services have become increasingly popular in recent years, as consumers seek out new and unique products delivered right to their doorstep.

There are many successful subscription box services operating today, and it’s important to learn from their examples. Companies like Bespoke Post, and LootCrate have all built successful subscription box services by offering unique and high-quality products to their subscribers. Bespoke Post offers themed boxes for men, featuring products such as grooming supplies, barware, and home goods. LootCrate offers pop-culture-themed boxes featuring items such as figurines, t-shirts, FUNKO Pops, and other collectibles. By offering unique and high-quality products that fit within a specific niche, these companies have built a loyal subscriber base and achieved great success.

If you’re interested in starting a subscription box service, here are some steps to get started:

1. Identify your niche

The first step to building a successful subscription box service is to identify your niche. What type of products will you offer? Who is your target audience? It’s important to have a clear understanding of your niche and target audience before moving forward. The Global Subscription Box industry is valued at $31.27 billion and growing at a rate of %16 per year

No one will subscribe to a service that sends them random stuff in the mail every month, and your customers should always have an idea of what’ll be coming in the mail every time.

Some ideas are Drinks like BrightCellars, Puzzles like PuzzlCrate, or BreoBox which specialize in tech gadgets, you can even go the Snack route which many boxes are now doing, some even specialize in specific types of snacks like Spicy or snacks from different countries.

2. Source your products

Once you’ve identified your niche, it’s time to source your products, Depending on the niche, this will be different for everyone. You’ll want to find unique and high-quality products that fit within your niche and items your customers will love. You might consider attending trade shows or reaching out to suppliers directly to find the best products for your subscription box. This is one of the hardest steps, but will get easier once you have a sizeable customer base.

You’ll want to get these products for the wholesale price so your customer will be saving money than buying each product on its own.

Going to local or small brands will be best for this since they can get more lenient with their pricing. Handshake.com can give you access to hundreds of small businesses that are selling wholesale, just make sure to negotiate to get the best prices.

3. Pricing

You’ll now need to determine how much to charge for your subscription box service.

This will depend on your niche, product costs, and how often you will ship the boxes (Bi-Weekly, Monthly, Quarterly)

Consider factors such as the cost of the products, shipping expenses, marketing, and any other overhead costs. You’ll also want to research the market to ensure that your pricing is competitive.

You can also offer multiple payment plans, so customers can pay in advance for multiple boxes to get a deal.

4. Marketing

To be able to get customers, you must have something to show them, this is where you need to create a prototype box to display on your website and potential customers, as well as suppliers, to show them what you had in mind.

This doesn’t have to be what you actually ship to your customers, just an idea of what you want to ship.

A custom box is an integral part of the branding of your subscription box, so you might have to order a large number of custom boxes to start. If Custom boxes are out of your budget, you can use a regular cardboard box and add some stickers or stamps related to your brand.

To gauge interest, consider doing a prelaunch of your service, where you collect emails of potential customers and build hype for your launch.

Once your website is live, it’s time to start marketing your subscription box service. Consider using social media, email marketing, and alternative methods like influencer partnerships to reach your target audience.

a referral program to encourage your current customers to bring in new subscribers can be one of the most effective marketing methods for subscription boxes.

5. Launch

Now onto the most fun part, Let’s launch your business!

Take care of providing customers with a great experience, especially during the early days.

Customer experience is key to building a successful subscription box service. Make sure that your boxes are delivered on time and that the products are high-quality and unique. Consider including personalized notes or other touches to make your customers feel special, especially during the beginning stages.

Overall, building a successful subscription box service takes time and effort, but with the right niche, products, and marketing strategy, it’s possible to create a thriving business.