What Are the Steps for Creating a Subscription Box?

The beauty of subscription boxes is their versatility. They can be created monthly, seasonally, as well as for special occasions or holidays. You can also create a “stand alone” or a “one off” box. 

For example, you can offer a “Welcome Box” or a “Starter Kit” which contains a group of products that represent your core brand. Let’s say you’re a baker, this box may include the basic products your customer needs to “begin their baking journey.” From here, you can add other products to a variety of different subscription boxes, which may include seasonal items or a holiday gift box. 

Many subscription boxes are curated with a variety of products from different companies... and that's fine, but a stronger message is a box filled with products from your own brand with your logo on each of the products.

Subscription boxes can be very lucrative. There are a variety of options, and you can structure it in any way that fits your budget and your brand. Once you decide on your budget, you can begin sourcing the products. 

Here's an overview of things to consider: 

1. Subscription Fees: The primary source of revenue for subscription box businesses is the fee charged to subscribers. Your customers pay a recurring fee to receive regular deliveries of curated products. Subscription fees can be structured on a monthly, quarterly, or annual basis, depending on your business model.

2. Upselling & Upgrades: Subscription box businesses often provide different tiers or levels of subscriptions. Higher-tier subscriptions may offer additional perks, exclusive products, or higher-ticket items. By upselling and offering upgrades and choices, you can generate additional revenue from subscribers who are willing to pay for premium offerings.

3. One-Time Purchases: In addition to subscription fees, some subscription box businesses offer one-time purchases of individual boxes or Special-Edition boxes. This allows customers to try out the box without committing to a subscription or to gift the box to others. One-time purchases provide a way to generate revenue from non-subscribers and expand the customer base. This tier may include your “Welcome” or “Essentials” boxes.

4. Partnerships, Collaborations & Co-branding: Subscription box businesses can form partnerships or collaborations with brands, manufacturers, and other businesses. These partnerships can involve featuring their products in the subscription box, cross-promotion, or co-branded special editions. Such collaborations often include revenue-sharing arrangements or promotional fees.

If you work with brands who want you to promote their products in paid ads or sponsorships, another great way to generate revenue is to Co-Brand a Product Box with your advertiser and include their product alongside yours. 

Here's an example: Let's say you're doing a paid sponsorship for a Salad Dressing Company.

The Salad Dressing Company will pay to be included in your product-subscription box as they want to be in the hands of your customers and followers. Their bottle of salad dressing (which they will supply) will be included along with logo'd products from your brand: i.e.: Salad Tongs, Mason Jars for a fun way to serve your salad, Swedish Dishcloths for clean-up, Mixing Bowl, Silicone Ziploc storage bags for produce or leftovers... and any other product(s) that represents the message you want to promote or include in your product box. It's a win-win campaign.

5. Advertising & Sponsorships: Subscription box businesses often include opportunities for advertising or sponsorship within their boxes. Brands interested in reaching the subscription box's target audience may pay for product placement or promotional space which may include coupons or promotional products. 

6. E-commerce & Add-On Sales: Many subscription box businesses operate an e-commerce component, allowing customers to purchase additional products from their website. These add-on sales can supplement the revenue generated from subscriptions and provide an opportunity for customers to purchase additional products. 

👉 Whatever option you decide to pursue, creating a subscription box is not only creative, but also a profitable way to sell to your customers. If you'd like to get expert consulting and support from me personally, you can find out how and get started, right here!