You may have seen subscription boxes advertised online or even in physical stores and thought to yourself, “I could definitely launch one of those!” If you have an existing newsletter that serves a specific community, here is a guide on how to use your audience to turn your content into subscription box revenue!
Pick Your Topic
The first step is to choose the topic for your subscription box. This can be based on anything that you’re passionate about or have knowledge in, and ideally it aligns to what your readers are interested in. For example, if you have a newsletter about makeup, you could launch a beauty subscription box. If you have a newsletter about cooking, you could launch a monthly box filled with gourmet ingredients and recipes. Once you’ve chosen your topic, it’s time to start planning the contents of your box.
Put Together a Product List
Now that you know what topic you’ll be basing your subscription box on, it’s time to put together a list of products. This can be anything from full-sized products to samples, depending on your budget. From the previous examples, if you’re launching a beauty subscription box, your product list could include makeup, skincare, hair care, and nail care products. If you’re launching a cooking subscription box, your product list could include spices, sauces, utensils, and recipes. The sky’s the limit when it comes to what you can include in your subscription box!
Create an Eye-Catching Design
The next step is to design the outside of your subscription box. This is what your customers will see when they receive their monthly shipment, so it’s important to make a good first impression! Make sure that your design is eye-catching and professional-looking. You may even want to hire a graphic designer to help you with this step.
Determine Your Shipping Schedule
Now that you’ve designed the outside of your subscription box, it’s time to figure out how often you’ll be shipping them out. Most subscription boxes are shipped monthly, but you can choose whatever frequency works best for you and your business. Keep in mind that the more often you ship, the higher your shipping costs will be. You’ll also need to factor in lead times for manufacturing and shipping when determining your shipping schedule.
Set Your Pricing
Pricing is very important as you want to make sure you can sell a product that your customers can afford and have enough money left over to pay yourself!
Here are a couple things to consider:
1. What is the perceived value of your box?
This is probably the most important factor in setting a competitive price for your subscription box. You need to think about what your box offers and how that compares to other similar boxes on the market. What unique benefits does your box offer? Why would someone want to subscribe to your box over another?
2. What is the cost of goods for your box?
This includes the cost of all the items you’ll be including in your box, plus any shipping and packaging costs. You’ll need to find a balance between making a profit and making sure your box is affordable for your target market.
Successful boxes aim for gross margins above 50% to make sure there is enough money left over to pay themselves or spend money on acquiring customers.
Choose Your Subscription Box Software
There are several subscription box platform available and each offers different features. At Cratejoy, we are specifically built for subscription boxes and offer you template and tools to help you maximize conversions and customer retention.
Launch Your Subscription Box!
Following these steps will set you on the right path to launch your box. If you’re looking for more details, please make sure to download our Subscription Box Business plan!