Business Overview

Everybody loves surprises. A subscription box business focuses on unique products available for a specific market, delivering packages to your customer's doorstep weekly, monthly, or quarterly. Your business will focus on sourcing the very best niche items that surpass the customer's expectations for creativity, whimsy, and function while delivering a service that becomes the highlight of their week.

Who is this business right for?

Subscription boxes are a marketing guru's dream. If you love networking to expand the impact of your brand and connecting with people who are passionate about cooking, pets, technology, or any other niche market, you are halfway there. You will also need to be ready to tirelessly work with suppliers in order to deliver new and unique products that your customers can't wait to try.

What happens during a typical day at a subscription box business?

During regular business hours, you might have to:

  • Pack and ship boxes ready
  • Source new products
  • Expand your network of suppliers
  • Create advertising campaigns for your target market
  • Perform a quality test on all of your products
  • Create box themes for the upcoming year
  • Staying on top of customer service

What is the target market?

While some current boxes appeal to a wide range of ages, it is true that the millennial generation is driving the subscription box market. The young consumer is anxious to experience new and unusual products while enjoying the convenience of door-to-door delivery. Your dedicated customer will be someone who has a good job with some expendable income, who also enjoys a value-packed purchase.

How does a subscription box business make money?

Your customers will pay you a regular amount for their box subscription. In order to turn a profit, you must source a collection of items that costs less than the price of the subscription. Some vendors may offer you free sampler packs, but customers will place a higher value on hard to find items or new products they can't find on the shelves at the store. Some month's boxes will turn a higher profit than others.

What is the growth potential for a subscription box business?

Great news! The subscription box service industry is exploding. When you create a box that fuels the need for new shoes, clothes, techie toys, or children's activities, the potential for growth is exponential. You may start out shipping a few hundred boxes out of your garage and end up with a massive warehouse in a short time. Your ability to read and respond to trends in the consumer market and create a unique box will determine your ability to expand.