A subscription box business could be a great way to make a living. Customers pay a subscription and you regularly send them a box full of products. Examples of subscription box product ideas include meal kits, books, wine, vinyl records, coffee, bath products and make-up.
Subscription boxes are convenient for customers because they get products they love delivered to their door instead of having to regularly go out and buy them. Some subscription boxes can also provide an element of surprise by offering new products each month – which could include products they’ve never tried. This makes it a great way to discover new products.
Clearly then there are benefits for customers. But what do you get out of it? This post explains some of the ways starting a subscription box business could benefit you.
Startup costs are low
Some businesses can be very expensive to launch because they require lots of equipment and physical premises. Subscription box businesses cost very little to start up – you can run them from home and you need very little equipment other than a laptop and some packaging materials. Buying inventory and setting up a website are likely to be the two biggest costs, which you should be able to do relatively cheaply. All in all, it’s something you can do without having lots of savings or having to take out a large loan.
Revenue is predictable
Subscription box businesses can provide a steady income that makes budgeting easier. While customers may cancel subscriptions, you can usually guarantee a few months of ongoing payment every time a customer signs up. There are companies that can help you set up payment processing for subscription services. This includes offering high risk merchant accounts that can limit fees from chargebacks.
You can follow your passions
Subscription boxes are typically centred around a niche. This can be a niche that you are passionate about and an opportunity to have fun exploring your passion. For example, if you love craft beer, a craft beer subscription box could be a chance to discover new beers and share your discoveries. You could even hand-craft items to put in subscription boxes such as candles or baked goods, giving you a chance to turn a craft hobby into a form of income.
Marketing a subscription box is straightforward
Companies that sell lots of products and services have a lot of items to individually promote. While you may decide to create different subscription packages, you generally only have to focus on marketing a single product – which is your subscription. Because you’re catering to a niche, it also makes targeting your marketing easier. This makes it easy to come up with marketing strategies without worrying that you may be focusing on the wrong product or audience.
Customer demand is growing
The subscription box market is expected to grow in value considerably over the next few years. More people are actively searching for subscription boxes to sign up to and are looking for more unique niche options. This makes it a great business to get into in 2023.