A Growing Love for Subscription Boxes
The UK population are falling in love with subscription boxes. More of us than ever are signing up for monthly deliveries. For those looking to launch a new business, subscription box services are relatively low cost to set up and the repeat custom aids financial planning. Is this the ideal route into retail?
Demand for Subscription Boxes on the Up
Aylesbury Box Company has seen a significant increase in enquiries and orders from established and new subscription businesses. Our thoughts that this is a growth area have been confirmed.
In research conducted by fulfilment and delivery company Whistl, 81% of UK households signed up for subscription box services in 2021. Many homes now receive multiple monthly deliveries to the door, with £52.00 being the average monthly spend. Food, beauty products and pet treats were among the most popular options and subscribers remained loyal for an average of 9 months.
This appetite for subscription services makes it a tempting business model. So, what do you need to consider before setting up a new subscription service?
In this article, we consider:
- Identifying Target Customers
- Using E-commerce Packaging to Make Subscription Boxes Appealing
- Is your Idea Profitable?
Identifying Target Customers
You may already have an idea about the type of subscription box you would like to sell and the type of items that might be included. That’s great, but now it’s time to map out the person who needs this in their lives.
Are you targeting individuals who live in a specific geographical location? Are you focusing on a particular age group? Do your target customers share common interests or values? Are they purchasing for themselves or someone else – such as grandparents for a grandchild’s birthday gift? What other products are they likely to spend their money on? The more specific you can be about the target customer, the easier it will be to tailor your subscription service and marketing to them.
Next, you need to consider why your target customer would sign up to your subscription box, rather than buying the goods online or in-store? Can you offer exclusivity, emerging brands or niche items – things that aren’t widely available? Are you focused on providing great value or maximising convenience? Will you bring together everything that is needed for a creative project, such as making a meal or a craft creation?
Also, think about why these customers are not already signed up to receive a subscription box or how you are going to tempt them away from the service they currently receive.
Using E-commerce Packaging to Make Subscription Boxes Appealing
When the subscription boxes are delivered, they need to be received with delight. The first step in this process is printed postal boxes as they build anticipation and a positive association with your brand.
The unboxing experience has to feel like unwrapping a gift. Internal printing, tissue paper, tags and stickers are popular ways to add to the delight of opening up the subscription box.
Aylesbury Box Company manufacture printed subscription boxes in the dimensions and colours requested by our customers. We enquire about the typical contents, as we can then advise on the packaging design, detailing and finish that look great and protect the goods inside.
It is the personalised message, the unexpected detail and the added extras that differentiate subscription boxes and encourage customers to remain loyal. How will you provide this added value?
Is your Idea Profitable?
Before taking your idea any further, it is important to look at the costs.
Contact local packaging suppliers to request information packaging and printing options, along with minimum order runs. Some will charge a premium for low volume orders, but not Aylesbury Box Company! Get a quote for the postal boxes, as well as other packaging materials.
Investigate shipping costs, comparing Royal Mail, delivery companies and couriers. Be mindful of keeping the size of your postal boxes and weight on contents within the limits of a specific cost bracket. Factor in the time and associated cost for packing and distributing your boxes. This is a cost and if all goes well, you may need to pay for fulfilment services in the future.
Add up the cost of purchasing the items that you want to put inside. It is advisable to buy enough to make up some sample boxes. Try out the layout and packaging – does the box look half empty or jam-packed? Use your sample boxes for market research with your target customers. What do people think? Is this something that they would be interested in? Do they have any feedback or ideas for improving your boxes?
Be prepared to adapt your concept in response to feedback, costs and other factors. There is always an element of trial and error. A key to success is to never stop learning!
Look out for our next article, where we will continue with the theme of subscription box businesses.