Want to know how to kick off a subscription box business? Here’s a guide to help you get started, whether you’re looking for a side hustle or a full-time gig.
I recently chatted with Sarah Williams, a subscription box pro who built a seven-figure business in just three years. She’s the CEO and founder of Framed by Sarah and Launch Your Box. Sarah has helped thousands of people start and grow their subscription box businesses through detailed training.
Curious about how subscription boxes work, what business ideas you could try, startup costs, or how to find customers? Keep reading for insights from our interview with Sarah.
If you’re serious about starting a subscription box business, you should definitely check out Sarah’s free workshop. It’ll guide you on what to include in your box, how to plan your business, and how to launch it.
### How to Start a Subscription Box Business
**1. Tell us a bit about yourself and your earnings from subscription boxes.**
My business journey began as a side hustle while running a brick-and-mortar store. I launched a subscription box to give my regular customers a VIP experience, and it was a hit. During the pandemic, I closed my store because my subscription box business was thriving. Five years later, I have thousands of subscribers and have made over $5 million.
**2. How do subscription boxes work?**
A subscription box is a curated package for a specific group of customers, delivered on a regular schedule with automatic payments. It can contain anything from food and clothing to candles. You decide the frequency—monthly, quarterly, weekly, etc.
**3. What do you like and dislike about running a subscription box business?**
Unlike other e-commerce businesses that have fluctuating sales, subscription boxes provide consistent monthly income. This stability helps with planning inventory and making business decisions. Honestly, there’s nothing I dislike about it.
**4. Is there room for new subscription box businesses?**
Yes, the industry is growing fast, and there are many niches to explore. Don’t compete with big players; instead, find a specific niche with a dedicated following.
**5. What are some subscription box ideas someone could start now?**
Start with something you’re passionate about. If you have a hobby or special interest, that’s your niche. Knowing your audience is crucial for messaging and building your customer base. Successful boxes have ranged from planters to guinea pig supplies to candles.
**6. How much money can a subscription box business make each month?**
Your earnings depend on your profit margin and subscriber count. For instance, with a $20 profit per box and 50 subscribers, you’d make $1,000 monthly. You can scale up or down based on your goals.
**7. How much does it cost to start a subscription box business?**
Startup costs vary. You could start with $1,000 or $100,000, depending on your goals and initial subscriber count. Costs include product, packaging, advertising, payroll, fulfillment, and shipping. Aim for a 30% profit margin initially, increasing to 50-60% as you grow.
**8. How do you decide what to put in your subscription box and where to get the items?**
Understand your ideal customer and their preferences. We offer a “6 in 60” workshop to help plan six months of boxes in 60 minutes. Start with one to five items per box. You can source products from markets, wholesale websites like Faire, Abound, Tundra, Alibaba, and Indiamart.
**9. How do you price a subscription box?**
Base your price on your average order value and aim for a 30% profit margin. Be mindful of pricing thresholds; small differences can change perceived value. Ensure your price reflects the value you’re offering without scaring off potential subscribers.
**10. How do you market a subscription box business?**
Social media ads on platforms like Facebook, Instagram, and TikTok are the best ways to market your box. Digital marketing is more cost-effective than traditional methods like billboards or TV ads.
**11. What are the steps to start a subscription box business?**
First, build an audience. This is crucial and often skipped. It might take 30 to 90 days. Meanwhile, work on logistics like your tech stack, sales platform, sourcing products, packaging, and fulfillment. Building an audience should be your top priority, with logistics falling into place afterward.
**12. Can you tell us about the resources you offer?**
Our “6 in 60” workshop helps you plan six subscription boxes in 60 minutes. By the end, you’ll know your target audience, what to include in your boxes, have a plan for your first six boxes, and be ready to launch your business.
Ready to start your subscription box business?