Subscriptions is a powerful e-commerce product
With the advent of businesses like Winefamly, WashWorld, and Dollar Shave Club, people are beginning to see the benefit of subscription services.
It’s not just wine or razors, either. People are becoming more creative by the day. Things you would never have imagined as a subscription service – like cheese, festival tickets – are now becoming commonplace, delivered to your door every month.
If you’re reading this, you’re probably in one of two situations:
- You run an online store and want to create a subscription box as a supplement to your existing business.
- You are laying on the beach thinking big thoughts.
Regardless of which of these situations you’re in, you’ve come to the right place.
The Pros and Cons, How Subscriptions started
There is nothing new about Subscription-based services. They’ve been around since the first magazines. Subscription boxes are just a new spin on an old model.
In 2012 Dollar Shave Club released their Youtube video (more than 25 million views) that kickstarted the talk about subscription boxes.
Dollar Shave Club, a company that sells $1 razors, was sold for $1 Billion to Unilever.. It’s almost like a fairytale.
Let’s look at the pros and cons of subscription box services.
- Recurring revenue! This is what everyone wants. Extending the customer lifetime value.
- When your customers stay with you for a longer time, you build a stronger relationship.
- Customers love surprises and opening boxes makes people happy!
- Branding, if you brand the boxes you will be top of mind.
- Potential for untapped markets can make you the leading provider if you are a first mover.
- Money spent on branding packaging can lower your margins.
- Customers can be skeptical of “contracts” and termination.
- The risk of high churn is a subscription-based business worst nightmare.
- If you can’t maintain the value of the product, you will see churn – Keep your product interesting!
- Expiration date of cards
Now that you understand the benefits and challenges of subscription boxes, let’s talk about some weird and wacky things that are actually working.
Does it make sense as a Subscription?
If you asked 10 years ago if i wanted a Cheese subscription, I would have laughed my ass off.
But now, I’m more open to what at first hand sound strange. The only limitation is your own creativity and your own “filters”.
Take a look at these ideas for subscription boxes:
- Pickling Box
- Fishing tackle
- Pie Subscription
- Chocolate Subscription
- Professional Boxes
- Fan Boxes
- Gardening Box
- Cleaning Supplies
- Dental Care
- Soap Subscription
- T-Shirts, Socks, and Underwear
- Magic Box
- Instrument Strings
- Jewelry Making
The list could go on and on.
I hope these suggestions have given you a little inspiration!
But remember to ask yourself:
- Does my product solve a problem?
- Is there a frequently need for my product?
- With what frequency can the box be sold?
A Win-Win for Businesses
Subscription boxes provide recurring revenue for your businesses – that’s a more reliable income, which allows you to plan further into the future.
Subscription boxes are the perfect fit for small and big businesses. You can get started with little overhead. With a simple landing page that allows your customers to order and pay and a small warehouse-like space, you are set up for a modest launch.
How to get started
You don’t have to reinvent the wheel. Reepay makes it easy to get started whether you are on a low budget and only would like a simple integration, or you are a company who would like a full custom integration.
Get Started Today!
Sign Up and Get a free test account now