The subscription box industry is getting increasingly more and more popular nowadays. The industry has been continuously booming over the last few years. Now you can sell anything with subscription boxes, ranging from experiences and mindfulness to food products and apparel. Brands like FabFitFun and Birchbox have paved the way for other subscription brands, whereas Cratejoy has made it easier to start a subscription box company.
In the US, several eCommerce brands generate a revenue of over $2.6 billion with subscriptions only. Starting a subscription box company can be exciting, but it requires much more than a great subscription business idea. You will need to consider everything, ranging from sourcing your products to planning your eCommerce logistics strategy.
While it seems overwhelming in the beginning, you can successfully run a subscription business just by conducting proper research and adding eCommerce to a WordPress site. However, before you go ahead, you need to know what subscription boxes are? How subscription boxes can benefit an eCommerce brand. In this guide, we will discuss the same.
What are subscription boxes?
A subscription box is a group of physical products packaged together in a box and then delivered to customers on a regular and recurring schedule. Today, customers can get everything they need via subscription boxes, be it cosmetic products, home goods, flowers or meal delivery services.
Subscription boxes are of two types – Curation subscriptions and replenishment subscriptions. In curation subscriptions, subscribers choose certain products, typically organized around a certain theme, to receive periodically. However, the items packed in the mystery box will vary with each delivery to surprise the subscribers. On the other hand, in replenishment subscriptions, the same items are shipped to the customers on a recurring schedule. This type of subscription can offer the subscriber a great discount. You can reorder your subscription box midway if required, no matter what option you choose.
What are the benefits of subscription boxes?
Earn recurring revenue: Although subscription boxes eliminate the hassle of reordering for the customers, brands need not pay attention to remarket their products to customers again. As a result, it helps brands to recover customer acquisition costs at a fast pace. The longer the subscribers subscribe, the higher the ROI. You will keep receiving the payment until you give your customers a reason to unsubscribe from your facilities.
Better predict order cadence: When your customers reorder their boxes, you will get an idea of the customer demands, helping you in sales forecasting. In addition, knowing what the requirements are and how many orders need to be shipped ahead of time can help you manage your stocks. And by keeping the right stock levels on hand, you can reduce your warehouse cost and need not hire more workforce to keep an eye on inventory levels.
Offer customers a deal: When subscribers opt for subscription boxes, they get a chance to get their products at a discounted price. In addition, they need not buy the products on MRP every time they reorder. While subscription boxes allow customers to save money, brands can predict their monthly, quarterly, or yearly income.
The bottom line
Now that you know what are the benefits of subscription boxes, what are you waiting for? Choose your niche, set up an eCommerce store (either from scratch or by adding eCommerce to WordPress), and reap the benefits of the subscription box industry.
If you are wondering how to turn your existing WordPress site into an eCommerce site, ShopRocket can help you. For more information, visit our website here: https://shoprocket.io/.