Subscription Box Business

A Quick Guide on How to Start a Subscription Box Business


You’ve got a great idea for starting a company. The only thing is that the main way the business can work is if it’s subscription-based. 

With the pandemic still at large in most areas, the demand for subscription boxes is at an all-time high. As long as you have an interesting business model and know how to reach your target audience, you’ll get orders in. 

This is a little easier said than done, but don’t worry. We know all the crucial steps that you’ve got to take in order to find success. Check out this guide to learn how to get started with your eCommerce company.  

Come up With a Killer Product Idea 

Before you can begin packing boxes, you need a product idea. If this has you scratching your head in confusion, take a moment to consider a niche.

Are you passionate about fitness? Do you want to help people eat more nutritiously? Have you always enjoyed playing around with makeup? 

There’s no limit to what you can do. You will need to accept that the competition will be high no matter what. That doesn’t mean that your idea is a bad one. All it means is that you’ll have to get a little creative if you want to stand out. 

Speaking of competitors, you will need to find out who you’re up against. Search the web to see how many people offer subscription boxes in your chosen niche. 

You might be able to get a few ideas from them. Note, we said ideas, you don’t want to copy. 

Create a Customer Persona 

Every subscription business has an ideal customer that they market their products toward. To figure out who your audience is, it’s time to create a customer persona. 

The best way to do this is to send out surveys to a demographic that you think would be interested. You’ll want to learn about their buying habits, interests, and medium income. 

Once you have this, you’ll be able to create an ideal buyer based on your results. Try to get as detailed as you can. You want to be able to actually picture yourself selling things to this imaginary person. 

Decide on a Cost 

You can have the best product on the market, but if you charge too much, you’re not likely to get any sales. This being said, you’re still trying to turn a profit, so you can’t afford to be too generous. 

When setting your prices, you need to consider the cost of the things inside the box, postage, the price of packing materials, and transaction fees. You also need to factor in how long it takes you to assemble a single box order. 

If you need help managing finances to match all these numbers, there are price calculators that you can look at online. The basic rule is that you want to end with at least a 40% profit margin. 

Design Your Box 

When it comes to impressing customers, appearances matter. The box is the first thing that they’re going to see, so you need to get a little bit creative. 

Put yourself in the customer’s shoes for a few moments. What do you want to feel when you open a package? This should help you with the aesthetic aspects. 

You have to consider the product inside the box. If your jewelry comes to the customer broken, that won’t do wonders for your reputation. When you’re starting with a fresh new company, this is a setback that you can’t afford. 

Make sure that you use the right packing materials to keep the things inside the box safe. Customers like getting personalized messages with their orders. You can include postcards and monthly newsletters to increase engagement. 

Find a Good Supplier 

It will be hard for you to ship products out if you don’t have the products to give. That means you need to find a loyal supplier. This can be a little difficult. 

You can’t judge the quality of their products unless you try them out for yourself first. They rely on customers as much as you do. Offer them cross-promotional marketing as an incentive to work with you. 

Begin the Prelaunch Process 

The purpose of the prelaunch process is to gather up interest for your box before you start shipping out orders. You can do this in several ways. The most common is to get people to sign up for email newsletters. 

Create a prelaunch page on your website and link it with your social media and email accounts. 

Get Your Website up and Running

If you don’t already have a website up and running, you’ll want to get a jump on that. You won’t be able to take box orders until you do. 

This can seem a bit scary if you don’t know how to code or don’t even know where to begin with the design. Luckily, there are website creators with eCommerce and subscription boxes in mind. The setup is so easy that it will only take a few minutes. 

Start Taking Orders

The day is finally here. It’s time for you to begin shipping out your products. Send your adoring public emails letting them know that their box is on the way, and don’t forget to include a shipping number.

If you don’t have as many orders as you would like, that’s okay. You’re a new business, after all. Take this time to do a little bit more promotional work in between packing boxes. 

Starting a Company That’s Subscription-Based 

Are you thinking about starting a company that’s subscription-based? It’s not as hard as it seems. With the pandemic still around, it doesn’t look like the demand for these businesses is going to go down anytime soon.

Take advantage of the hype and start designing your box today. Your customers are waiting. 

If you’re looking for more ways to make your business thrive, we’ve got you covered. Check out our blog daily for all the latest tips and tricks.