Subscription Box Business Model: A Complete Guide

You are sold on the idea of launching a subscription box business model. You also see it trending all over social media. If you’re new to the concept of a subscription box business and exploring the idea, this is the perfect opportunity to dive in and learn more.

Here is the post that is certainly going to save you from scrolling all through Google. Because this guide will help you understand all there is to know about monthly subscription boxes. Furthermore, it guides you on how to create and launch the subscription business ideas of boxes. There’s also a special bonus section that will boost your creative thinking with types of subscription box businesses. 

Hop on the train straightaway to understand how to start a subscription box business online! 

What is a Subscription Box Business Model?

To understand it very plainly, when you throw in some related/unrelated products in a box and ship them to your subscribers at regular intervals, it’s a subscription box. I know, I know, it’s a very raw definition. But that’s the central idea. Instead of having to buy individual items, you group them or bundle them in a subscription box. And honestly, it is a very feasible solution for businesses and customers, both. 

Various Types of Monthly Subscription Boxes

Now, the explanation of throwing related/unrelated products in a box was just for understanding. In reality, subscription boxes follow a pattern, theme, way, or a group of people. That is to say, it follows a niche. Based on that, there can be a few types of these mystery boxes. 

1. Fandom Inspired Boxes: Harry Potter, Friends, B99, The Office, The Avengers, Disney, Doraemon, Anime, K-pop, and the list goes on and on. If you are one of the fans and love to curate related items, you can follow the fandom type subscription boxes and come up with exciting merch. 

Example: Bibbidi Boxes

2. Nostalgia Inspired Boxes: Nostalgia is undoubtedly going to be different for each age group. So, based on which demographic you want to target, create a box of old memories. For instance, 90s subscription boxes!

Example: Stylein Boxes

3. Seasonal/Occasion Based Boxes: Winter essentials, summer essentials, thanksgiving must haves, or vacation essentials are some examples of seasonal or occasional boxes. People are always excited about finding a well-organized and convenient solution!

Example: Fab Fit Fun

4. Selfcare/Wellness Boxes: These save people the time and effort of researching online, offering a curated solution at their fingertips. If you know about skincare, haircare, and wellness, then create a box around it. For example you can create skincare subscription box or dedicated subscription boxes for women. 

Example: Therabox

5. Art/Craft Related Boxes: Art and crafts for toddler subscription box, teens, science enthusiasts, subscription boxes for couples, pet parents, etc. are some of the ideas by and large to curate art and craft type boxes. You can also get in touch with local artisans and sell their produce in such boxes. 

Example: Adults and Crafts Crate

6. Snack Boxes: Yes, this kind of subscription box is also relevant in the market. Healthy snack subscription box, assorted cookie boxes, chocolate subscription box, fruit subscription box, period snacking boxes, and so much more. You can even curate a box of ingredients along with recipes and launch meal kit subscriptions.

Example: Universal Yums 

7. Educational Boxes: These types of boxes are specifically targeted at helping an audience of a certain age learn something. It can be a technical, practical, and hands-on training kit to impart education. 

Example: KiwiCo

8. Pet-related Boxes: Pet parents are just as confused about how to care for their furry babies. If you can help them with a sorted box of essentials, it would take a huge load off their shoulders. 

Example: Bark Box

9. Fitness and Health Boxes: Looking at different brands and knowing what’s good for your health can be confusing. Surprisingly. You can put your knowledge of health, fitness, and wellness in action by curating monthly subscription boxes for men and monthly subscription boxes for women simultaneously around daily fitness. 

Example: Fit Snack Box 

10. Book Subscriptions: Book lovers are definitely always on the lookout for new reads. If you can deliver them better reading experiences at regular intervals, they’re gonna keep coming back. 

Example: Once Upon a Book Club

11. Cultural Experience Boxes: The world is definitely becoming smaller day by day due to the power of the media. Today, everyone wants to try a Ramen Bowl, a Croissant, a Gujarati Snack, and so on. Based on your culture, you can obviously build food subscription boxes or something else!

Example: GlobeIn

12. Beauty Boxes: Throw all the beauty essentials in one box with a step-by-step guide and you’ll solve a lot of problems for girls who face confusion with makeup and beauty. Beauty box subscriptions are trending along with makeup subscription boxes. You can create separate subscription boxes for men as well around beauty and styling. 

Example: SkinKraft 

13. Build Your Own Boxes: Apart from all these types, building your own boxes allows users to choose a select number of items and create their own boxes. It can be a style subscription box, a grocery subscription box, or daily essentials box wherein the customer can choose what they want specifically. 

Example: Forest Essentials BYOB 

14. Mystery Boxes: For customers who want to experiment, curate mystery boxes to offer exciting products. You can also offer subscription gifts as an easy gifting solution for your audience. 

Example: The Mystery Gift Box 

Is Monthly Boxes Business Profitable? Why?

There are certain benefits of running a Subscription Box Business Model. First of all, it is easy for customers as they don’t have to think of what to buy. They don’t have to keep looking for products separately. All their needs are eventually sorted by just clicking ‘buy’ on a single bundle. For a business, it brings in the following benefits. 

1. Recurring Revenue: Subscription businesses generate consistent and recurring revenue. It helps create a predictable cash flow for your business to scale as per plan. 
2. Customer Loyalty: If your subscription box is good and fulfills customer needs, they are going to stick around for longer. This will gradually reduce your customer acquisition cost in the long term. 
3. Upselling Opportunities: With a subscription box, you are going to get in touch with customers regularly. With every box, you have a chance to push in or introduce a new product. This can also help in upselling and cross-selling other products. 
4. Bulk Purchasing and Cost Efficiency: When you curate multiple subscription boxes, you can purchase the products in bulk. This would comparatively help reduce cost per unit. It pushes your profit margin to be more efficient. 
5. High Perceived Value: The boxes are usually a combination of multiple items. It is perceived as comparatively high in value, promoting healthy pricing. 
6. Scalability: Once your system is set on sourcing products, logistics, delivery partners, and subscriptions, it is cheaper to keep adding new customers to your food subscription boxes or other subscription box business model idea. 
7. Predictable Inventory Management: You know exactly how many boxes will go every month. This helps in efficient inventory management. This helps eliminate the challenge of overstocking and unnecessary wastage.
8. Flexibility in Business Models: Cater to multiple customer segments by offering varied pricing tiers, season-based subscriptions, or personalized product choices. 

How to Start the Best Subscription Boxes Business Online?

There are a few steps that you must consider before you start following e-commerce business ideas for subscription boxes.

Step-1 Pick Your Niche

Okay, from all the different types of subscription box business model, what do you choose? Do you have some other innovative ideas? Then choose that. 

• Do you love snacks, self-care items, or fandom merch?
• Think of something specific that you and others are passionate about.

Your niche would define the further steps and product acquisition efforts. If you are already in the business of a specific product, amp up your sales by selling product boxes. 

Step-2 Know Your Audience

Based on the age group and audience interests, the brand packaging, tone, and colors would change for your subscription box business model. Further, do an audience demographics survey to understand who will love your products. Your product solves problems for which group specifically? 

Busy moms, Gamers, fitness enthusiasts, boomers, corporate employees, freelancers? Based on the group of audience, know their likes, needs, and spending patterns to curate your box. 

Step-3 Plan What’s in your Subscription Box to Build Business

Here are the questions that you need to answer while designing the subscription box. 

• Pick the items that would go inside the box.
• Are you set on the number of items per box?
• Deciding on the price factor for each box. Differentiate pricing based on one-month, three-month, or six-month subscriptions. 

The box and its products must solve a problem for your audience. It should be worth every penny they pay. Only then you can sustain the subscription box business. 

Step-4 Find Your Products to Build a Subscription Box

Once you come up with what you want to add to the box, it’s time to find the products. If you are already selling the products individually and a subscription box is an additional offering, well and good. Otherwise, look for local businesses, vendors, and artisans who find it tough to market their products. You can buy from them in bulk and then sell the products as a part of a bundle. 

If you have never tried a certain product, it is advised to do so to ensure quality and trust in your subscription box service. 

Step-5 Design Your Brand and Packaging

A part of selling boxes is definitely its visual appeal and unboxing experience. Make sure that your branding, packaging, and box provide a premium feel. Based on the nature of the items, you might have to choose materials that avoid breakage and spillage. Make the unboxing experience perfectly grammable.

Step-6 Build Your Online Store

It’s time to set up a website from where you would publicize, market, and sell your subscription boxes. Here, you have two options.

Option-1: Use Platforms like Shopify, WooCommerce, or Cratejoy to add your subscription box service. The only consideration here is adapting to the algorithm, rules, and policies of the specific platform to ensure smoother operations. To begin with, it can be a perfect option for your business. 

If you are very sure of your plan and have a long-term vision, opt for Option-2, which involves using a membership plugin to create a personal subscription website. 

Option-2: Furthermore, use the ARMember Membership Plugin to power up your website with a subscription. The best part, you get WooCommerce add-on support as well. With this, you will create a personalized platform to sell and market subscription boxes and get the best out of both options. 

With ARMember, it is easy to set up a multi-layered subscription plan to suit your needs. 

Step-7 Plan Logistics and Shipping for Subscription Box Business Model

Based on your location, you must understand the shipping charges. If you want to ship globally, you will have to consider shipping charges for each location and price your box accordingly. You can also have a uniform price for the box for each location and then provide shipping charge details once they add their address.

Packing and shipping on time is important and also adds to the positive customer experience. 

Step-8 Market, Launch, and Optimize

If you don’t advertise and market, how would others know about your subscription box service? Use multiple marketing tools like social media, email marketing, affiliate marketing, influencer marketing, and FOMO techniques. It is advisable to create anticipation around the launch to offer discounts, freebies, or personalization to early subscribers. 

Implement Your Subscription Box Business Ideas and Launch a Box Today!

 

Eventually, it’s not as tough as you might think. A subscription business is easy to set up with membership and subscription Plugins like ARMember. It allows you to set up a recurring subscription plan. Set duration and recurring time easily, even on the ARMember Lite version. This tool will help you integrate with WooCommerce as well for a nuanced subscription box business.

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