Subscription boxes are everywhere these days. From Birchbox to Blue Apron, Loot Crate to FitFabFun, there seems to be a curated box of monthly goodies for just about everyone.
While big names like Ipsy and Barkbox dominate the market, thousands of smaller, individually-run subscription box companies are finding incredible success by focusing on products or communities they love.
As the subscription industry has grown, new businesses are launching daily with the goal of sending curated experiences to eager subscribers. To get an idea of how many subscription boxes are out there, Cratejoy’s Marketplace hosts more than 1,600 subscriptions in over 80 categories.
If you’ve ever thought about turning your passions into a curated experience for others, here are the top 4 things you need to start your own subscription box:
1. A niche or passionate community
Successful subscription box businesses cater to enthusiastic communities. Whether it’s beauty gurus, bookworms, raw vegans, or mixologists, the key is having an engaged group of people interested in receiving products or experiences that celebrate their niche.
2. Software and tools to run an online business
Navigating the technology side of Ecommerce can be challenging, especially with so many options available. Cratejoy, designed specifically for subscription box entrepreneurs, offers an all-in-one platform that includes a website builder, checkout system, recurring billing, shipping, customer management, and one-on-one coaching and support. While other solutions can provide an online store with inventory management, several plugins are often needed to run a subscription box business smoothly.
3. A good eye for product curation
Running a subscription box business means finding, sourcing, and curating products your subscribers will love each month. For example, if you’re running a box for crystal enthusiasts, you could send out three unique crystals each month, but curation is about knowing your niche and what additional products your customers want to discover. This involves customer and product research to keep your box exciting and keep subscribers looking forward to it every month.
4. The right mix of business smarts, product expertise, and marketing prowess
A subscription box business needs a solid foundation, a good product, and a strong marketing strategy. Here’s what to consider:
Business Foundations:
– Pricing your box correctly to ensure profitability and customer attraction.
– Deciding on your shipping frequency – monthly, quarterly, or bi-annually.
– Choosing reliable tools to build a business that can grow.
Product Expertise:
– Determining the number of products to send each month.
– Sourcing products from artisans, wholesalers, or platforms like Alibaba.
– Planning at least six months of box themes or curations before launching.
Marketing Strategy:
– Selecting social media channels to invest in, such as Facebook, Instagram, or Pinterest.
– Setting a budget for ads and understanding your cost of acquisition.
– Deciding whether to pursue influencer or affiliate marketing.
These questions are essential as you develop your business plan. For more detailed information on the subscription box business process, Cratejoy offers a comprehensive guide to help you get started.