Skip to main content

5 Reasons to Start a Subscription box

By Cheyenne Smith

Whether you’re an established e-comm entrepreneur or revving up to launch your first business, there’s one revenue model you don’t want to overlook: subscription commerce.

After all, the subscription box industry continues to grow in both supply and demand, and the business model’s reliance on recurring revenue makes it easier for companies to scale quickly or introduce new revenue streams to existing businesses.

Interested in learning more about the benefits of starting a subscription box? Check out our top 5 below:

Recurring revenue model

Ask any business owner about their top pain points and it’s likely “customer acquisition” will come up again and again. And though subscription boxes absolutely need new customers to grow, the issue of losing customers after each one time purchase is small peanuts compared to traditional E-commerce.

As a subscription box owner, once you acquire a customer, the right mix of exciting products, stellar customer service, and nurture-focused marketing can transform a one-time purchase into a lifelong customer. That’s right, the one time cost of acquiring customers automatically transforms into recurring revenue month after month when your business is built on subscription or membership rather than single transactions.

Growing Industry

According to the Harvard Business Review, the subscription industry has grown more than 200% every year since 2011. Moreso, in 2017 alone there were more than 2,000 subscription businesses with 11 million customers – and that number continues to climb.

The beauty of subscription commerce is that there is room for as many different offerings as there are interests. And whether you plan to sell something high level like makeup samples, or something more niche like cruelty-free skincare –  as long as there is an enthusiastic audience, your subscription box idea likely has legs to stand on. If you’re looking to validate your idea, Cratejoy’s subscription box marketplace is home to over 1500 boxes in 84 different categories and is a great place to find your market fit.

Easy-to-use tools

If you’re new to subscription box businesses, a cursory search will yield a few different results for starting your own box. The main things you’ll need to keep in mind when choosing your subscription box platform are rebilling, shipping, and customer management tools that work with the subscription business flow.

From there, SaaS platforms like Cratejoy will offer extra add ons or marketing opportunities to get your box in front of enthusiastic audiences. Ease of use will be especially important as your business scales, so when you’re looking at APIs vs all-in-one solutions, keep in mind your own level of tech sophistication and the reliability of your tools in conjunction with one another.

Enthusiastic customer base ( esp. for passion based businesses)

As we mentioned in our “Growing Industry” section, subscription boxes are most successful when they can tap into an enthusiastic customer base or existing community. Scribbler, a subscription box for writers, was able to generate more than $10k in 10 days by launching to a writer community that was hungry for tools by authors for authors.

Between social media marketing and an existing audience for aspiring writers, Scribbler was able to capitalize on the intersection of product fit and customer interest. This subscription box success story is a common thread among the businesses that are able to scale and can be seen across industries like fandom, stickers, outdoor supplies, and more.

Low barriers to entry (experience, funding, time)

Even with a great idea and hefty potential customer base, sometimes resources can get in the way of launching a business. And whether that resource is time, money, or bandwidth, subscription commerce offers one of the easiest, low-cost methods to getting started.

When it comes to price, most new subscription box entrepreneurs will need to pay for their platform tools up front – but with a proper prelaunch or presale, a savvy box owner can use their first month’s earnings to pay for the box and products themselves. Within a month, little up front capital can plant the seeds for a healthy, growing business.

Looking for more information on subscription commerce?

Check out Cratejoy’s comprehensive guide on “How to Start a Subscription Box” or visit Cratejoy.com/sell for more information on tools and features.

The post 5 Reasons to Start a Subscription box appeared first on Blogtrepreneur – For Busy Entrepreneurs.

from: Blogtrepreneur – For Busy Entrepreneurs
via Blogtrepreneur

Source: 5 Reasons to Start a Subscription box Via Business Advice.

Comments

Post a Comment

Popular posts from this blog

7 Ways to Grow Your SaaS Startup Faster

Every startup looks for ways to catapult a business to success. Here are some tips for accelerating growth for SaaS (software as a service) companies. 1. Start charging early SaaS startups are often hesitant about charging customers. They think that their product is not yet ready, that it’s necessary to get traction and focus on expanding their customer base rather than on growing revenue. Deep inside, however, they often don’t just have enough faith in their product and are not sure if someone will buy it at all. They prefer keeping hundreds or thousands of free users to attempting to win a few serious customers. Big numbers are comforting but the product remains an unverified idea. Building a product should imply increasing revenue. So don’t hesitate too much—put it to the test by charging and see if it works in the real conditions. This is one way to minimize your risk too. Instead of waiting to launch until you’ve invested huge amounts of time and money, launch early. If...
Post a Comment
Read more

How to Add Web Push Notification to Your WordPress Site

Do you want to add push notifications to your WordPress site? Push notifications allow you to send notifications to users even when they are not visiting your website. In this article, we will show you how to easily add web push notifications to your WordPress site. We will also talk about the best WordPress push notification plugins and how to send desktop & mobile push notifications from your WordPress site. What is Push Notification? Push notifications are clickable messages displayed on top of user’s desktop or notification area on their mobile device. They can be shown even when the user’s browser is not open. Aside from desktop, web push notifications also work on mobile devices. This allows you to reach your users across devices with latest updates and offers. Web push notifications have proven to be a very effective way to convert website visitors into customers and loyal followers. Why Add Web Push Notifications to Your WordPress Site? We have already discussed tha...
Post a Comment
Read more

7 Best WordPress Job Board Plugins and Themes

Are you looking for the best WordPress job board plugin? There are several WordPress job board plugins that you can use to easily create a job board and charge other companies to post jobs. It is one of the ways to make money from your blog , and you can even use it to post your own job openings. In this article, we have picked the best WordPress job board plugins and themes that you can use. Building a Job Board Website with WordPress WordPress is currently one of the most popular website builders in the market, powering more than 30% of all websites on the internet. It can be used to build almost any kind of website including a job board website. There are two types of WordPress websites which often confuses new users. First, there is WordPress.com which is a hosted solution. Second, you have WordPress.org also called self-hosted WordPress. See our article on WordPress.com vs WordPress.org for a side-by-side comparison. We recommend using self-hosted WordPress.org because it g...
Post a Comment
Read more