Business has seen a 3000% growth over the past 3 years – that’s massive! Statistics show that, at present, more than ten million people in the U.S. are willing to pay a flat monthly rate in return for non-stop access to agreed upon services and goods within the specified period of time, be they eateries, animal feeds, clothing, cosmetics, diapers or other consumer goods, all of which can be conveniently delivered to their homes by the retailer with no extra shipping charge.
Studies conducted by Crimson Hexagon on social media platforms owned by major players in the industry sector have found the main reason for the rising popularity of these subscription boxes.
1. Components involve surprises and excitement
To many customers, receiving new boxes reminisces Christmas time. Thus, they often post messages expressing positive feelings upon receiving the gifts tailor-made to their taste while the majority of them are convinced that subscription boxes are held to higher quality control standards where all are professionally inspected and logged as an SOP.
Besides, with regards to convenience, subscription boxes allow for more time on the part of customers as they do not need to spend and waste time comparing similar products in the shop or with other online retailers – the classic benefit of e-Commerce which allows you to shop at home with more access, informed decisions and controll.
Birchbox (beauty products), NatureBox (healthy sweets) and BarkBox (dog products) are business pioneers of a new market with proper barriers to entry that see a limited number of new competitors on a daily. In fact, the subscription box business isn’t only popular among specialized providers in the field, it has spread to mega-sized companies such as Starbucks, Sephora and Walmart. So, what are you waiting for! As a customer, endless supply for a relatively low price is right in front of you. As a business, why not give the subscription box model a go.
From the outset, answer this question first: Do you want your products to be included in a subscription box package, or, do you want to start providing your own subscription box service?
To take part in an existing subscription box package:
Admittedly, it will enable your brand significantly better access to customers. Nonetheless, the recommendation is for you to research and come up with a final list of products to be offered by your business in subscription box psckages and presented to the right customer target groups.
To start providing your own service:
Although it may initially appear to have a lot more things to do, it’s worth the investment, depending on the type of shop. There are currently numerous service providers that help with areas such as web content writing, accounting or logistics, which can enhance the success rate of the business launch.
First things first, though, you must have an interesting idea. As there’re a wide range of markets, risk diversification is absolutely crucial. Whenever you have the chance to enter a niche market, you have a bigger chance than your competitors to succeed.
The next step involves studying the market. According to Crimson Hexagon, 75 percent of customers using subscription box services are females. What’s interesting, however, is the fact that they aren’t millennials. The data shows that more than half the customers that signed up for the service are 35 or above (not at all suggesting you should start the service if your customers are all females).
Next, questionnaires are to be sent to your customers to ascertain whether they are currently using any subscription box business(es) or not, whether they would be interested in a continued service of receiving products from you, what your rivals are doing and also what your customers are saying about your rivals.
Embark on a prototype box which should be sent to friends, family members or VIP customers, first, to monitor their first impressions and reactions. Once you are certain that it’s popular among majority customers, proceed to the prelaunch phase using social media and email marketing campaigns that allows customers to sign up for product samples and testing purposes and receive information, which can all be used for re-marketing.
Having a good number of subscribers in hand, you are ready for the preorder stage. What you earn on preorders can then be used to finance the first lot of your subscription box business.
References: greedisgoods.com / gravysolutions.io / squareup.com