The subscription boxes have become a talk of the town, and it’s safe to say that they have turned into successfully running businesses. The prime reason behind the success is the affordability and convenience that it delivers to the customers. With people locked into their homes during the COVID-19, it’s needless to say that subscription boxes have made people a bit happier on dull days.
That being said, businesses around the globe have started investing the subscription boxes, even if they weren’t offering it before. Primarily, it’s for the businesses to increment the sales chart and expand the revenues. So, if you are trying to embark on the journey of subscription and considering the custom boxes for packaging, we have outlined the factors to consider!
Finding The Niche
In the current world, hundreds and thousands of subscription boxes are available. Similarly, the ever-increasing number of eCommerce stores are investing in the subscription box business. That being said, if you want to up this game, your first step should be finding the niche. It’s suggested to observe the current competitors and customer base.
There is a never-ending count of research tools that outlines the existing competition and leads, so do your homework. The data provided by these tools will deliver the intersections and opportunities that can be targeted and aren’t saturated. It includes the product category subsets, but it can also comprise the broader themes that can be used for the subscription box.
For instance, if you are trying to start the stationery subscription box, you need to think broader than just adding pencils and diaries. For the same reason, you can start adding paper clips, stickers, bookmarks, colored markers, and more such things that develop a memorable experience. In simpler words, provide what your customers are looking for!
Outlining The Total Costs
Once you’ve established the niche and theme of the subscription box, it’s time for you to outline the components/contents of the box and how it will be affordable. It demands the research of total costs rather than monthly costs. While outlining the total costs, you need to consider the business’s affordable costs and what the customers are likely to afford.
The price sensitivity of customers can be outlined by the product quality that shall be added to the subscription boxes. You could also check the costs of competitors that are delivering similar quality standards. With this information, you can work on the products that will be added to the box, and it will determine how much edge can be added to the subscription box.
- Cost range of products – the subscription boxes tend to have premium products and smaller products, so these costs have to be balanced each day
- Box costs – the monthly subscription boxes need to look cool, and custom boxes for packaging by WeCustomBoxes can be used for it. However, you need to consider the budget for the box design
- Shipping & fulfillment costs – once the business expands, the per box costs will reduce. Similarly, you could try investing in the fulfillment service as they deal with carriers
- Software charges – the businesses need to invest in the eCommerce stores while designing the subscription boxes. For the same reason, the customer support and payment must be developed, but these software solutions will have additional costs
- Acquisition of customers – the businesses will eventually lead to regularly spend money for acquiring new customers through social media and paid ads
- High-end photos – for every subscription box, presentation is the key, and it demands high-end and high-resolution photos. But again, such photos demand professional photographers
Building The Prototype
Imagine creating hundred subscription boxes, and they don’t sell out; that’s the ultimate loss of investment, right? With this being said, you need to start by developing and building the subscription box’s prototype. This prototype can be used for marketing and photography sessions. In simpler words, the businesses need to put together the prototype of the subscription box.
It’s best to build the prototype according to the budget for the subscription boxes. In addition, it can be utilized for creating photos and videos. It eventually delivers material for posting it online and alluring in the customer base. On top of everything, it can be utilized for product demonstration purposes.
Knowing The Expectations Of Customers
When it comes down to the development of subscription boxes, the customers always expect discounts when they buy the subscription box at first. The businesses can opt for a quick search and check out the competitors; line out what discounts your competitors are offering. In addition to this, you could opt for the free offer for some customers through the giveaway.
Also, before you go forward with the subscription box business, you must keep in mind that business is business, no matter how modern it gets. So, always have the business plan and business model!