The subscription box is an exploding industry. It started in 2010 with Birchbox and, since then, it virtually snowballed. Basically, if you can think it, you can put it in a subscription box. Meat, stuff for shaving, snacks, makeup, dog treats, anything you can dream of. But what do you have to do when it comes to starting a subscription box of your own? We’ve brought in some experts to weigh in on the situation.
1. Convince Brands to Come into Your Subscription Box | Aihui Ong
One of the simplest ways to get a subscription box off the ground is to get some brands into it. Approach the brands by telling them this is a win-win situation. By getting into your box, they are basically cutting away from the shelf clutter. Aihui Ong uses her experience to show us how a simple Amazon search for nail polish renders some 50,000 results. Getting into a subscription box will be an easy way for a makeup brand, for example, to get away for a bit from the drug store, Sephora, and other shelves.
Apart from that, brands can use the box to gather customer feedback, which otherwise may be hard to come by. Of course, there are always focus groups. But they are expensive. So is social media. Customers do write their opinions on a brand there, but brands may need to hire people with full-time jobs to monitor that feedback and answer to it. With the box, brands get customized market research about their products and the package they come in.
Find more of Aihui Ong on her Twitter page.
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2. Financing as a Problem | Georg Richter
According to Georg Richter, one of the main problems you will face as a young entrepreneur when starting a subscription box is the financing. More often than not, in the beginning, you won’t have a lot of it. Therefore, you will strive to do everything yourself, possibly aided by a tiny team, maybe even part of your family.
This idea means one thing. It’s highly important to know when to bring in extra help. You also need to find the financial power to hire the experts you require to grow the business.
Georg Richter says that, according to his professional experience, the best part of all subscription boxes struggles when it hits the 15,000 subscribers mark. We live in a world where customers can no longer be satisfied if a vendor is unfocused, has a cheap staff or doesn’t outsource enough to cover all the aspects needed. Therefore, a successful subscription box will need experienced management and specialized partners if you want it to grow.
Georg Richter is the CEO and founder of OceanX, and you can find a lot more of his amazing advice on his LinkedIn.
Starting a subscription box is easy enough to do. The hard part comes when you get the thousands of subscribers you always wanted, and you have to keep them pleased. That’s where the advice from our experts, Georg Richter and Aihui Ong comes in. Let us know in the comment section below about your experience with subscription boxes.