Business Idea

Start A Coffee Subscription Box

About

Starting a coffee subscription box requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coffee subscription box, or selling coffee subscription box online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a coffee subscription box ➜

Key stats

market size
$10B
revenue (monthly)
$33K
starting costs
$30.8K
gross margin
40%
time to build
10 months
growth
Email marketing
business model
E-Commerce
time investment
Side project

About

Starting a coffee subscription box requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coffee subscription box, or selling coffee subscription box online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a coffee subscription box ➜

Key stats

market size
$10B
revenue (monthly)
$33K
starting costs
$30.8K
gross margin
40%

 

time to build
10 months
growth
Email marketing
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Inventory Expenses $350 $9,000
Training & Education Expenses $0 $1,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $50
Food Business Expenses $100 $500
Other Expenses $0 $300

Successful Businesses

Business URL Rank
Trade Coffee drinktrade.com #48,697
Peet’s Coffee peets.com #72,375
Bean Box® beanbox.com #155,848
Driftaway Coffee driftaway.coffee #164,586
Amora Coffee amoracoffee.com #176,147
Crema.co crema.co #246,615
Angelino's Coffee angelinos.com #249,210
Craft Coffee craftcoffee.com #336,701
Red Bay Coffee redbaycoffee.com #368,460
Sightglass Coffee sightglasscoffee.com #375,661
Nebraska Game and Parks outdoornebraska.gov #419,837

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Quick build time The average time it takes to build your product is quick - typically around 10 months. This will allow you to bring your product to market faster.
Easy to encourage "impulse buy" In the coffee subscription box, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Crowded Space Competition is high when it comes to your coffee subscription box, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a coffee subscription box, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to coffee subscription box.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜