Start A Subscription Box Business - Business Ideas

Updated: September 15th, 2022
Start A Subscription Box Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Subscription box businesses offer customers a niche set of products on a monthly basis.

They're in high demand as they add value to customer service, offer exclusive products and can be highly profitable.

To start a subscription box business, understand your niche market, provide quality products, perfect your box design, build a good relationship with fulfillment companies, and market your service.

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

If you're interested in how to sell subscription box, or selling 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 subscription box business ➜

Key Stats

revenue (monthly)
$106K
starting costs
$13.7K
gross margin
60%
time to build
360 days
growth
SEO
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Inventory Expenses

$350

$14,750

Software Expenses

$150

$2,794

Website Costs

$13

$215

Advertising & Marketing Costs

$0

$2,450

Total Startup Costs

$513

$27,209

Successful Businesses

Business URL Rank

Smithsonian Magazine

smithsonianmag.com

6,893

Vikatan

vikatan.com

17,948

Birchbox

birchbox.com

48,571

ConseCrate

consecrate.cratejoy.com

52,046

Colorado Springs Gazette

gazette.com

55,763

Flaviar

flaviar.com

56,813

Urban Tastebud

urbantastebud.com

57,002

BOX

box.co.uk

57,756

Loot Crate

lootcrate.com

59,584

Bokksu

bokksu.com

65,228

Daily High Club

dailyhighclub.com

130,248

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!

Little startup costs required

The cost to start a subscription box business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.

Rewarding work

Starting a subscription box business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

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.

Traffic to your website

A subscription box business gives people a reason to visit your website and to keep coming back to you!

Cons Description

Crowded Space

Competition is high when it comes to your subscription box business, 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.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Lack of benefits

With a subscription box business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Isolation

Often times, as a subscription box business, you typically work alone and do not have much face-to-face interaction with other team members.

Taxes

As a subscription box business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

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.

    Learn more about affiliate program ➜

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 3

    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.

    Learn more about word of mouth ➜