Why Are So Many People Starting Subscription Boxes
Posted by Emily Tyler on March 13, 2019
If you have been keeping watch of the new emerging markets, you will be one area growing in popularity right now is subscription boxes. People are loving receiving exciting new products every month that are getting delivered straight to their door. This means that companies from across the country are starting up their own subscription boxes. While it is not an easy venture, it is certainly an area of opportunity you won’t want to miss.
So, let’s have a look at why so many people are starting subscription boxes, and how this type of business can give a fantastic work-life balance.
The Subscription Box Market is Growing
One of the many reasons that people are becoming interested in subscription boxes is simply because the market is growing…fast!
According to this article by Forbes, In the last five years, this kind of venture has grown by over 100 percent each year. It doesn’t seem to be slowing down any time soon, as more people are wanting a new and exciting way to shop.
For example, beauty boxes and food subscription boxes are extremely popular and there is still plenty of room for the market to grow. Why would you not want to become a part of this growing market and bring fresh new ideas to the table or should we say, to the straight to the front door?
It Is Possible with a Limited Budget
The great thing about subscription boxes is that you do not need a massive budget to get them off the ground and make them successful. Setting up a website can be expensive, but there are ways to save costs on marketing. Using a smaller business, rather than a big corporate agency can mean much better value for money. This web design company based in Lancashire offers a personal experience and reasonable rates for start-ups.
If you have a limited budget, try starting a pre-launch campaign. You can do this by creating a simple landing pages at first, rather than a full website. You can then post on social media and collect emails, ready to monitor interest and start collecting pre-orders. Customers will often pay money upfront if they like the new concept, or if they receive a discount for signing up pre-launch. Once you get going, you can sustain your business by allowing customers to sign up for six to 12 months, for a reduced rate. This is going to give you capital to work with when you have got a limited budget.
Start from Home
You do not need fancy business premises to make a subscription box service work. In fact, a lot of them can be started at home. All you need is a good idea that you are passionate about, as well as a spare room in your house. For example, if you love baking or cats, you can start with this. You will be able to create the boxes yourself, source the products and send them by post. It is a small business that is totally possible even if you have no prior business experience. You can use marketing online so introduce your new subscription box service to everyone and wait for your first customers.
A Tried and Tested Model
The subscription box model isn’t anything new, this business is tried and tested, and there are hundreds of successful ones in the UK alone. They all work in a similar way; customers sign up to receive boxes every month, they pay in advance, they receive their products through the post and this repeats again the next month. For you as a business owner, you source the products, receive the payment, send out the boxes by post and then work again next month. This process works and this is what makes starting a subscription box a lot easier.
There is Scalability
A lot of people start a subscription box with a view to having a small part-time business, often for extra income alongside a full-time role. If the product isn’t too niche, there is tons of potential for scalability. While you can start off in your local city or town, you can venture across the country thanks to online marketing and advertising. Of course, why stop there? There are plenty of subscription boxes that have expanded overseas and are selling internationally. For example, Graze Box was a subscription box service that started in the UK selling healthy snacks. This is now a global success and they have even successfully launched the subscription service in the United States. You can even find these products in food stores across the country too.
You Can Follow Your Passion
One of the best things about starting a subscription box is that you do not have to follow the trends in the market. There is freedom to follow what you are passionate about because the model works. For example, vegan subscription boxes have grown rapidly over the last few years are more people are interested in trying cruelty-free products and meat-free snacks. There are a lot of niche subscription boxes that are working well. Another example of this is Japanese subscription boxes. If you are someone that loves another culture or even just trying international foods, you can start up your own subscription box. There are bound to be other people out there that also love the same thing. Of course, it does not always have to be a food subscription box that you create. There are also lots of different options, such as hobbies. There are even successful crochet subscription boxes out there to enjoy. As long as you are passionate about what you are selling, you can definitely make it work.
You Have the Power of Online Marketing
Online marketing is going to be your best friend when it comes to starting up your subscription box. It is cost-effective and easy to use and grow your business. Plus, you do not always need a lot of money to make it happen. For example, you can start adverting on a blog and use the power of social media to spread the word about your subscription box. You can also take advantage of email advertising. This is all going to cost less than traditional advertising methods. You will be able to track all of your progress and this can improve your traffic, leads and development. The real advantage of online marketing is that you can target the demographic that you want. For example, if you are targeting young men and women, or even teenagers, you will be able to do this through social media targetted campaigns.
You Can Manage Without Staff
Not only can you start your subscription box business from home, but you can manage it without the need to hire staff. You can start up the website, use online marketing for customers and source the products. In addition, it is possible to pack up the boxes and send them out by post without any help. This is definitely going to work in the beginning as a start-up. But most importantly, it can also work when you scale up as long as you have a clear strategy and know how your business works. Of course, this is also going to save you paying out wages and it will increase your profits.
The Choice of B2C and B2B
There is also versatility when it comes to subscription boxes. While a lot of them will be better for consumers to buy, such as fragrance and creative subscription boxes, there are also some ventures that will be fantastic for B2B too. For example, small cafes and other local businesses will love to get involved with coffee subscription boxes for their customers. This would be a way to offer cool new coffee to customers and their employees that you cannot find in stores. An office may also subscribe to have their coffee delivered for convenience and vibrancy in the business. Everyone wants something a little different and with subscription boxes, there is no limit on whether you offer products to consumers or other businesses.
So if you have been thinking about this business model, but don’t know where to start, head over to our Love Sub Hub, and find out about everything from postage, packaging, marketing tools and product sourcing.