How to Start a Subscription Box Business in 2020

Subscription boxes are getting more and more popular nowadays. They offer customers a unique shopping experience created around a niche of products. In fact, subscription boxes are the best way to add additional value to the overall shopping experience.
Since they are massively popular, the question now is, can you start your own subscription box business?
Yes!
The process is fairly simple, just like starting any other business. In this article, we will go through the steps on how to start a subscription box business.
1. Subscription Box Idea
Every business starts with an idea. This is the time when you have to identify your niche and target audience. Going in with a general subscription box will do your job much harder just because of the fierce competition you have to go through.
You can always find an idea for your subscription box business online. Check out FiveBoxes.com for subscription box ideas and niches.
In other words, you have to analyze the market and find a gap that has good potential.
Here some questions you need to consider:
• What is your niche?
A niche is a specific market for products or services. Your products won’t be interesting for everybody. That’s why you need to go for a more specific niche like makeup, food, fitness, or even sub-niches like CrossFit, Chinese massage, etc.
• Who are your competitors?
In order to create the best business plan, you have to know what’s going on around you. Finding out more about your competition will give you hints on what to look out for.
• Who are your customers?
Knowing your customers and their needs will give a better chance of succeeding in this business.
2. Make your box
After you answered all these questions, it is time to create your box. Now you’ll have valuable information about your customers and competition, and you need to make everything in your power to stand out from the crowd.
You have to make a plan of what to include in each box. Bear in mind that subscription boxes are not just exiting for the products inside. They should elevate the whole shopping experience. So, you should go for a unique box with added value.
3. Price Your Box
Now it is time to make some calculations. This is when you can make or break your business. One of the biggest mistakes for a subscription box business is pricing the box too high or too low.
Since most competitors offer great product value, you have to price it just right.
Here are some things to consider:
• Product cost
• Packing materials cost
• Box cost
• Postage/shipping cost
• Fulfillment cost
• Transaction costs
• Fixed costs (hosting, Gmail, accounting software,etc.)
4. Create a Prototype Box
After all brainstorming, it is time to put every step into action and make a prototype box. It is the only way to see how your box looks in the real world.
There is a common misconception about subscription boxes that you need to have your first shipment ready before you start manufacturing. However, this is not entirely true.
A prototype box doesn’t need to have the exact items you planned. It just needs to look identical and have similar quality and quantity as the original one.
Another important thing is that a prototype box is very useful for building your image library.
5. Setup Your Website
So if everything goes smoothly, it is time to create your website. There are many website builders that can help you with this step, and you don’t have to be a website designer.
Try to create a unique experience for the customers with a professional-looking website. You should also pay attention to recurring billing and shipping. Try to lower the shipping costs and increase the value on your subscription box. That way, customers will think they are getting more value for their money.
Final Words
Starting a subscription box is just like launching an eCommerce store. The competition is getting tougher and tougher by the day, so the more you wait, the lower chances for succeeding you’ll have.
Try your best and make sure you are selling a product you believe in and that you are passionate about. Selling quality is more important than quantity.