Subscription Box Service – Is It A Good Business Opportunity?

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If you are trying to figure out a business opportunity, a subscription service might be exactly what you need.

A few years back, the subscription models were not even in existence. The idea of sending a box, that contained a bunch of products, seemed like a waste of resources to many entrepreneurs. Why not sell in a supermarket?

This has obviously changed quite significantly.

What makes the subscription box services so popular?

From the customer’s point of view, it’s an easy and relatively cheap way of checking the offer of a particular company (or even a few of them, depending on the type of a box you order. Some boxes include samples from several producers). Instead of maneuvering in the shopping alleys, you sit comfortably at home and browse through hundreds of boxes online.

Here’s an example. A box called Love with Food sends to its customers a box with healthy, organic snacks. It perfectly fits the idea of “trying things”, because the box contains a few samples of new products (in case you are not sure about a regular package).

That way, the company can always keep their customers interested.

Another important feature of a subscription box is that you do not need to constantly look for new things. This is simply the responsibility of the company – to keep you intrigued by the contents each month.

And whilst we’re talking about the uniqueness of subscription boxes, it is worth to see an example. Finders Seekers is one of such extremely original ideas. The box is a kind of game, where the players receive mysteries to solve every month. The gaming experience is provided by mixing the old-school riddle-solving with an online platform called “Find”. Once you log in to the platform and solve the mystery, the company provides you with a mysterious reward.

Sounds like fun, doesn’t it?

finders seekers subscription box packhelp

Who establishes subscription box services?

Being an entrepreneur is a lot of fun, but also a huge responsibility. However, subscription boxes are a good area of business to start the “solo” career and learn.

Remember, that your customers will expect a very different experience each month. This is why the most important thing is to come up with an original idea. Cratejoy has written a profound list of boxes that are still waiting to become reality – this might be a good place to start.

Tip: an original idea doesn’t necessarily mean something as unique and unprecedented as Finders Seekers. Even though there are lots of food boxes, some of them truly special. Just like Bokksu – a Japanese subscription service that offers a monthly dose of traditional and unique Japanese sweets and teas. Bokksu proves that – even in an area, where the competition is fierce – you can come up with a brilliant business idea.

Hence, a subscription box company is for the highly inventive people. However, don’t get too scared – if you’re having a hard time coming up with that one, non-existing thing, try to notice a niche, where things can be done better.

Bokksu-Box-Packhelp_post

What about pricing and business model?

It is best to observe and define your potential competition prior to setting up your business. Learn about their strategies and pricing. Find out if there’s a price discrimination used in the market and what are the seasonal sales worth checking out. Create a map of the market and mark every important feature there.

One of the important elements of your business model will also be shipping. Free shipping is a popular solution in the subscription box industry. You might want to include it in your pricing model.

Finally, do not try to overdo with your landing page. Simplicity should be achieved at all costs. In the end, your customers should need seconds to get the idea of your service.

Does the design of the box matter?

If you are interested in establishing a subscription box service, you need to give a lot of thought to your packaging design.

Most of the subscription boxes are cardboard-made. The reasons for that are the cheap price of that material, the possibility of customized imprint and a good durability-to-price ratio.

In some of our articles, we have mentioned subscription boxes as a source of design inspiration. Take a look at some of them below.

not_another_bill_box_design_packhelp_inspiration
Not Another Bill Packaging
grounded goods packaging inspiration packhelp
Grounded Goods Packaging
glossybox-packhelp-post-inspiration
Glossy Box Packaging

A subscription box should be a part of the user experience. Hence, the unique design will be crucial.

As you can see, some companies prefer a plain, kraft cardboard – our Eco Mailer Box. If you plan to open a subscription box company that sells upscale products – handmade jewelry or clothing – your packaging needs to speak the same language as the items you sell. In that case, we can help you with our Eco Color and Full Color Mailer Boxes.

Summary

A subscription box business model is a very reasonable way to start an entrepreneurial career. If you come up with an original idea, you are halfway there.

Find out how Packhelp can become a part of your company – see our range of products.

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