Subscription boxes have been around for a number of years, but it wasn’t until the height of the COVID-19 pandemic when they really started to gain traction amongst e-commerce consumers. With more people forced to stay home during lockdowns than ever before, ordering products online in bulk just seemed to make financial and practical sense. In fact, it was the only option for many people. Now that people have become more accustomed to this form of consumerism, subscription boxes are expected to not only stay within the popular stream of consciousness, but they’re most likely going to continue evolving and expanding into different global markets. How can you get in on the action?
Check out our informative guide that explains how to start a subscription box business and why custom-printed packaging is the star of the show, second only to your products.
Why Start a Subscription Box Business?
As you most likely already know, subscription box businesses are very big right now and sales are projected to increase over time. There are a lot of great reasons why you should consider starting your own subscription box business.
Projected Revenue Increases
Consumers like the convenience, affordability, and practicality of being able to purchase subscription boxes from companies with which they share similar values such as transparency and sustainability. Showcasing these values along with a dedication to the utmost consistency is a sure-fire way to increase your revenue.
Simple Shipping Logistics
Subscription boxes are typically sent out on a consistently bi-weekly schedule depending on your desired shipping frequency options, which simplifies your order fulfillment and shipping process and prevents product overstock.
Lower Customer Acquisition Costs
Customer acquisition is one of the biggest expenditures new businesses face. Since you don’t already have a customer base, you have to build one up. A subscription-based model means that you don’t have to spend as much on customer acquisition because once you achieve a solid base, they have to pay a consistent bi-weekly or monthly fee to continue receiving your products.
Build Customer Loyalty
Subscription-based business models are a mutually beneficial two-way street for you and your customers. You provide a product that they want for a recurring fee. This allows you to build a strong relationship over time in which you can learn more about your customers and provide them with a more personalized experience that they can’t get anywhere else.
Create Unique Upselling and Cross-Selling Opportunities
The process of building unwavering customer loyalty presents a number of unique upselling and cross-selling opportunities. Every time a customer makes a new purchase or renews the subscription, you can offer specific insider discounts and incentives to encourage them to continue supporting your brand.
How to Get Your Subscription Box Business Off the Ground
Starting any new business is challenging. There’s a lot of planning upfront capital involved, but it can also be rewarding when done right. Here are some useful tips for starting an e-commerce subscription box business.
Select Your Niche Market
Having a dream and a good idea is the foundation for building a successful subscription box business, but it’s not enough. You also need to identify your specific niche and create a business model that caters to it. It could be anything from fitness to food, clothing, and more.
Research Your Competitors
Once you’ve identified your niche market, it’s time to start researching your competitors. The subscription box industry is booming, but that doesn’t mean it’s over-crowded. There’s always space for new companies with great marketable ideas to swoop in and make a killing. Find out what your competitors are doing successfully and learn from their failures, so that you can one-up them in the marketspace.
Finalize Your Products
Before launching your business, you should take the time to finalize your initial product repertoire to ensure that they meet certain standards. Product health, safety, and quality standards vary from one industry to another, so make sure that your business is in compliance with all of the necessary codes in your field.
Shortlist Your Suppliers
The subscription box business model is based on an automated format, which means you need to find reliable suppliers to continuously replenish your inventory. Start by researching and contacting a list of well-known suppliers in your area and make sure that they can meet the fulfillment requirements and expectations of your brand.
Finalize Your Packaging Designs and Dimensions
Custom-printed subscription boxes should represent the core values and messaging of your brand. It’s important to pay close attention to every last detail of your packaging design from your logo right down to the internal compartments and size. Dimensions such as shape, measurements, and package weight will also determine the shipping logistics and costs.
Create a Unique Unboxing Experience
The unboxing experience is arguably just as important as the product and packaging that it comes in. Many a social media influencer has made a career out of unboxing new products that they’re endorsing live on camera for their followers to see. Allowing your customers to emulate that same fun experience at home is crucial to building brand loyalty.
Choose Your Custom-Printed Box Supplier
It’s important to choose a subscription box supplier that understands your business, your customers, and what you’re trying to accomplish. They should offer a variety of order volume and pricing options including short– and long-run packaging based on your specific needs.
Confirm Your Order Fulfillment Vendor
The next step is to partner with a reliable and reasonably priced order fulfillment vendor who can handle the supply chain and delivery logistics on behalf of your business. Choose a vendor that utilizes automated processes to optimize operational efficiency and end-customer satisfaction.
Market Your Subscription Box
Investing in a variety of effective marketing campaigns such as social media, email, PPC, content marketing, and mobile marketing is a great way to get your brand messaging noticed by a broad spectrum of people around the globe.
Custom-Printed Subscription Box Packaging in Canada
Magenta Depot offers a variety of short- and long-run custom-printed packaging solutions for businesses across Canada. Take advantage of our convenient 24/7 online ordering platform, significant cost savings with no setup fees, and a simplified design process with customized die lines. We also boast low minimum orders and a reliable two-week turnaround rate for maximum convenience. Plus, all of our products are proudly printed right here in Canada. Contact us today to learn more.
