Noor Al Abid contributed to this post, which originally appeared on the eShipper blog.
Whether you’re a regular reader of this blog or a newbie, you’ve probably noticed that a lot of ecommerce stores offer a monthly subscription box. These services allow you to have makeup, hair products, pajamas, grooming products, books, or even toys for your pet arrive in a fancy box at your house every month. Starting a business like this offers the ease of delivery and automated billing to customers –– they don’t have to worry about remembering to reorder products they need each month.
For these reasons, the monthly subscription business can be a lucrative one. But is it for you? Here are three points to consider before adding a subscription box service to your ecommerce store.
Do you have the right products for a subscription box?
While the range of product offerings for subscription boxes can vary wildly, you want to be clear about the type of customer you seek to attract. Monthly subscription boxes usually offer customers a curated sampling of something they love, like a collection of shiny new lip glosses for the summer, cigars that have been selected by a pro, or books for kids that have won awards. (You get the idea.) Can you package your product in this way, offering your customers a sampling of something of true value every month?
Put together a prototype box and ask your friends and family what they think. Hopefully, you’ll have a hit on your hands.
Do the Math
Generally speaking, monthly subscription boxes generate a healthy profit margin, largely because of the no-fuss marketing that works in this business model. In addition, subscriptions allow you the flexibility to mix products with low and high margins to achieve your target profit.
Here at Cratejoy, we’ve put together a nifty calculator that will help you to figure out what your profits will be, should you become a seller of monthly subscription boxes.
How passionate are you about this idea?
Successful subscription boxes have one thing in common: a team passionate about the products that leave the warehouse each month.
If your mind is overflowing with ideas for your first gift box, you should get into the monthly subscription game. After all, your knowledge and passion for your products will determine the success of this new venture.
Lastly: The average subscriber of subscription boxes receives seven every month. Clearly, customers are fully embracing this unique, convenient style of shopping!
eShipper stands ready to provide you with practical, low-cost shipping solutions for your subscription box business. So why not contact them today? Our hassle-free system allows you to process your shipments using just one application. With Cratejoy and eShipper working together, your subscription boxes will arrive on your customer’s doorstep on time –– and looking beautiful.