How to Start a Subscription Box Business
This video is sponsored by Cratejoy. I only work with companies that I believe in. Thank you for supporting businesses that help me to keep making informative content.
With all of the new subscription box businesses popping up, I thought it would be a good opportunity to talk about the pros and cons, and how you can quickly and easily start your own subscription box business, using the platform Cratejoy.
Why start a subscription box business?
1. Convenience for the customer
The customer doesn't have to remember to place their order every month, which is super convenient.
2. Regularity for the business owner
As the business owner, you have the ability to make much more accurate financial projections based on your current subscribers and the cost of your items. eCommerce is an unpredictable world, and the predictability of a subscription box business is definitely a benefit.
Some things to think about:
1. 20 somethings without children and empty-nesters are the most common purchasers of subscriptions. Not that they are the only ones, but if these groups are part of your target market, a subscription model will be a great fit.
2. This model works best for either products that people are going to buy anyway (like the Honest Company or the Dollar Shave Club) or lifestyles that have super-fans (like Birch Box) where every month they are exposed to fresh new items to fulfill their hobby.
How to get started
I recommend checking out CrateJoy. It's a hosting company, so you can host your whole website through them (kind of like Shopify) as well as a marketplace (kind of like Etsy). All CrateJoy websites are automatically mobile-friendly and you can use your own domain.
To me, one of the best things that Cratejoy offers is a built-in referral program, so if your customers refer a friend, they get some type of reward. Referral programs are the best way to reach out to a new audience (and requires no extra marketing work on your part!) but they can be tricky to set up on your own. Cratejoy makes this super simple.
What if you want to keep selling one-time purchase products?
Cratejoy has the ability to add one-time purchase products to your online store as well, so you can choose to host your website on Cratejoy with the addition of a few one-time purchases, or host your website on Shopify or another eCommerce platform, and then just link over to your Cratejoy subscription page.
You can watch this post in video form below, if you prefer:
Have you thought about starting a subscription box business? Already running one? Let me know in the comments! xo