If you are an entrepreneur, then it is essential that you give at least some consideration to starting a subscription box business. This is the hottest business model in eCommerce right now, and the sky is the limit with regard to where your new venture could take you.

Exactly what are subscription boxes, and why might they make sense for your business? Keep reading to get the lowdown on subscription boxes and how they could benefit your bottom line.

What Are Subscription Boxes?

You have probably seen advertisements for various subscription boxes online and on television. Perhaps you've wondered in passing what a subscription box is and why you would want one.

Subscription boxes are a service provided to consumers. Usually delivered on a monthly basis, a subscription box can be filled with just about anything. Subscription boxes may contain products such as:

• Coffee beans
• Razors
• The latest fashions
• Toys and treats for dogs
• Entire meals for easy in-home preparation

Whether subscription boxes contain perfume, skin care products, or something good to eat, there is no doubt that people are seriously addicted to this trend. Simply put, it is fun to receive a package in the mail each month that contains either new products to try or a selection of reliable favorites.

That is part of the fun of the subscription box. Either you get the same thing every month, perhaps personal grooming essentials like razor blades, or you get surprise products each month. For instance, maybe you love perfume so you sign up for a service that sends you three new samples each month. Thanks to your subscription box, you can try some of the most expensive and exclusive perfumes at an affordable price.

How Subscription Box Services Work

Each service operates slightly differently, but most of these businesses share some basic similarities. For instance, virtually all of these services promise recurring deliveries. This means that packages are shipped on a once-a-month basis, and they generally are received on or about the same day each month. Subscription boxes are an excellent way to expose customers to new brands and products. Conversely, they provide an opportunity for companies to unload stock that is from a discontinued line.

The key to making the recurring delivery service work is to demonstrate how much the consumer is saving. If you honestly can boast that the contents of your subscription box would cost $100 to buy in a retail setting but your customers are only paying $35, then you're bound to get some dedicated customers.

Recurring payments go hand-in-hand with recurring deliveries. In most cases, customers pay for each delivery by the month, guaranteeing your business new income each month. Many companies that offer subscription boxes ask customers to commit to at least a six-month or one-year contract, frequently at a reduced per-month cost.

Another thing that many subscription box services have in common is their reliance on theming. Themes could be anything such as:

• Sustainable products
• Locally made products
• Seasonal items
• Products centered around a certain life event

Companies frequently get really creative with the themes that they use in their subscription boxes. Having a motif that underpins each of the items in a collection can be really memorable, effective, and fun.

How Many Different Types of Subscription Boxes Are There?

Birchbox frequently is credited as being among the earliest of the subscription box businesses. Each month, customers receive a selection of beauty products that could contain anything from perfume to moisturizer. Birchbox asks customers some questions about their preferences for beauty and skin care. Then, each month, customers receive a handful of new beauty products to try. It's a great way for people to experiment, try new brands, and discover new favorites.

Since Birchbox began operations in 2010, dozens of companies have entered the subscription box arena. Companies both large and small are in on the game, and you might be surprised to learn just how diverse their offerings are.

In addition to beauty subscription boxes, food subscription boxes are incredibly popular. Sending out snacks, full meals, and selections of meat, these subscriptions are huge sellers, and they demonstrate that subscription boxes can feature goods that require refrigeration or other special handling.

Other subscription box services focus on shaving supplies, pet supplies, coffee beans, books, clothing, wine, toys, and hand-made goods. If you have a passion for something, chances are good that you can find a subscription box company for it.

Top Reasons to Start a Subscription Box Business

Establishing subscription boxes as a successful business model is easy. Lots of companies, both fledgling and of long-standing, have started offering subscription boxes. Why should your business follow suit?

Customer Engagement

Few things that your business can do will enhance and sustain customer engagement like a well-curated subscription box will. It is easy for consumers to be overwhelmed by options these days. They are inundated by constant media and commercials. This makes it challenging to slice through all of the noise to discover truly interesting and worthwhile products.

However, a subscription box gives your customer a chance to really bond with your brand. Your customers will look forward to the arrival of your box each month with anticipation. That anticipation, coupled with a sense of discovery, will foster an emotional connection with your business. Customers love being able to try new products through a subscription box, and chances are high that they will tell their friends about their experience. It is for reasons like these that subscription boxes are so popular with a variety of companies.

Get the Word Out on New Products and Services

Are you launching a new product or service? If so, a subscription box can be an excellent means for spreading the word and getting a large slice of the public to give it a try. When you send a monthly supply of wonderful treats to your customers, it's easier to build brand loyalty and develop excitement about your products and services.

One of the main benefits of offering a subscription box service is that it gives you a captive audience. Why not send your subscribers a sample of that great new product so that they can give it a try? Perhaps it's something that they would not have ordinarily considered, but when it arrives in their subscription box, they are willing to give it a try. This can be a tremendous way to drive sales on your newest items. Make sure that you include a coupon code or other special offer in the subscription box so that your customers can get a discount on their first purchase of the full-size product.

Make Your Brand More Visible

People love receiving a carefully chosen selection of goods delivered right to their doorstep on a predictable schedule. It's a wonderful way for you to garner some desirable brand loyalty, but you don't want to miss the opportunity to enhance your brand's visibility as well.

One of the best ways to do this is by designing unique, eye-catching, and memorable subscription boxes. You definitely don't want to skimp on quality here. Use only durable and attractive materials that are well-suited to protect and present your products in the best possible fashion.

Businesses may spend months deciding on the basic design of their subscription boxes. From the materials to the text that is printed on the packaging, this is a time-consuming and complex process. However, it is absolutely a worthwhile endeavor. The more memorable and exciting you can make your packaging, the more memorable and exciting your brand will appear to the public.

You may want to design a single subscription box that will be sent out each month. Alternatively, you could design a slightly different box each month. Perhaps the configuration of the boxes remains the same but you opt for a different color scheme and artwork each month. The colors and graphics could align with your theme for that month's collection. The more creative you can be, the better.

Just don't forget the basics when you are designing your subscription boxes. Always include useful information like your brand's name and logo as well as your email address and social media handles. It always pays to ensure that your customers know how to reach you.

A Marketing Tool That's Cost-Effective

Did you know that subscription boxes also are an effective marketing tool? Customers absolutely love receiving these monthly packages, and as a marketing tool, these boxes are incredibly convenient for your brand. Use your subscription boxes to send product samples, provide promotional materials or even enclose a hand-written note. It's just one more marketing channel that you can exploit.

Don't forget that much of subscription box management is handled entirely online. The vast majority of consumers sign up for their subscription on a website, so no brick-and-mortar location is needed. The upshot is that subscription boxes give you a cost-effective means of reaching your audience without having an actual retail storefront.

Subscription Box Services Are Easy to Manage

Starting a new business is tough. The hours are endless, and staying on top of the details can seem like an insurmountable task. The good news about a subscription box service is that it is relatively easy to manage and start. Many of these businesses have little to no overhead. You don't need a brick-and-mortar location, and you probably don't even need to hire any employees. Even inventory may not be much of a problem, especially at first.

Of course, if things go well and your business grows, you may eventually have to consider getting some warehouse space and hiring employees. For right now, you can start small and let your subscription boxes help your business grow organically.

It's also extremely helpful that customers always must prepay for their subscription each month, so you'll have a steady stream of revenue on which you can rely.

Flexibility

Speaking of growth, subscription box services are incredibly scalable. All you really need in the beginning is some eCommerce know-how. Relatively speaking, getting into subscription boxes is low-cost, and they provide you with a reliable revenue stream that can make it easier for you to grow your business. This is in stark contrast to the traditional single-purchase revenue models. In your business plan, you are relying much more heavily on monthly subscriptions than one-time purchases. With steady and predictable monthly revenue, you may be better prepared to fund your company's growth.

Learn More with Mid-Atlantic Packaging

Are you ready to start designing custom packaging for your new subscription box service? If so, then it's time to contact Mid-Atlantic Packaging for a custom packaging quote. Let our design team answer all of your questions and help you get started with an exciting new business venture.