One of the easiest ways to increase your profits via ecommerce is to create recurring revenue. You can do that through the sales of subscription boxes. Many people who get into dropshipping miss out on the chance to maximize income because they don’t take advantage of opportunities to generate recurring revenue. Get started by reading (and watching) the Ecommerce Empire Builders guide on how to start a subscription box business.
How to Find Subscription Boxes That Help Dramatically Boost Profits
Subscription plans can essentially help you earn free money by encouraging people to make repeat purchases on a regular basis. The key is knowing where to look for those lucrative subscription boxes that are likely to be worth the investment.
Start With a General Search
One of the best places to start your search for the ideal subscription box is Google. Simply conduct a Google search around “subscription boxes” and your specific niche. For instance, you might search “hiking subscription boxes,” which may yield many results to review. If you don’t see a lot of results in your search, this could indicate that you’re narrowing down your search too much. It’s best to keep things relevant but relatively broad.
Remember: just like with products, it’s important to choose competitive subscription box niches. Don’t complicate the process of how to start a subscription box business by trying to break new ground.
Look Through Affiliate Posts
You may come across a result that features an affiliate blog listing the “top subscription boxes” in your specific niche. You can look through the list for ideas for which subscription boxes are the best models of what to sell to your customers. While you might believe that people aren’t likely to spend upwards of hundreds of dollars on a monthly basis for a subscription box, you’d be mistaken. In fact, particularly in hobby niches, people love to spend money on what they love doing, be it hiking or another activity that they’ll always enjoy. This holds true regardless of the state of the economy.
Examine the Actual Boxes
Take a look at an individual subscription box and determine what they offer in each box, along with the pricing structure. A good subscription box will offer around two to three plans at most. This keeps things simple, and that’s more likely to encourage prospective customers to make a commitment.
One big selling point is the retail value included in the subscription box. This should be clearly displayed on the merchant’s page. The value should always outweigh what the customer pays, which truly shows that the box is worth the investment. However, this is very different from competing on price. Watch this breakdown of the secret to subscription box profitability.
Why It’s Often Best to Sell Physical Products
Many people prefer to subscribe to subscription boxes that make it easier to get what they want or need without putting much thought into it. For instance, you might be subscribed to a shaving kit subscription box, which keeps you stocked with high-quality shaving supplies. Now, you don’t have to think about going to the store or manually choosing your shaving products. At the same time, the retail value in each box outweighs what you actually end up paying per month.
This is why it’s often easiest to sell physical products over services through subscription plans. The key to how to start a subscription box business and be successful is to always think about what the customer needs.
Regardless of which plan you consider, look at multiple options and determine which subscription offers the best value and can attract the most customers.
Take a Look at Examples to Better Gauge the Value
When looking at the various subscription boxes out there, examine your potential competitors in depth. Do what you can to find examples of boxes that show precisely how much each box contains and display what customers can expect. Many subscription boxes websites allow you to view boxes that reveal what was included in previous shipments.
If you can’t determine if the value is higher than the price of the subscription box, or if a poor-quality website may reflect the quality of the products, move on. It’s best to look elsewhere for a more trustworthy subscription model.
Also, Take a Look at Your Suppliers
Once you’ve found the right subscription box for inspiration, keep in mind that you won’t necessarily need to be the one fulfilling the orders for each subscription. Before you get too deep in your journey of how to start a subscription box business, you need the right suppliers. Your supplier should have fulfillment centers that help simplify this process. You can also work with manufacturers who will customize designs, put each subscription box together, and ship them to your customers.
Create a Landing Page That Fully Illustrates the Value of the Subscription Box
When you’ve created the right box, it’s time to begin selling it. One of the first steps to take is to develop a strong landing page. Make sure it highlights the features and value of the box. In most cases, you should try to find a box with a retail value of at least $50 per box.
One small tip to help you sell your subscription box to customers is to use an unboxing video that clearly shows what’s included in each box. You don’t have to make one yourself. You can work with an influencer. They’ll produce an unboxing video for you. Then you can use it on a landing page that customers will be able to see. A brief unboxing video can go a long way in helping sell those boxes.
Avoid Selling the Subscription on the Front End
Before you try to sell your subscription, it’s important to entice customers with a specific product. Don’t try to sell a subscription right from the start of the sales funnel. Instead, create a funnel that begins with selling a single product that will encourage people to buy more from you.
From there, they may be more likely to subscribe to your box. Upsell with a simple offer such as, “Do you like our product? Give our subscription box a try.” If the customer liked that first product, they’ll probably consider your subscription plan. Subsequently, you’ll save more money as you essentially earn those customers for free.
By looking at the many subscription boxes out there in your niche and pinpointing the value they offer vs. the price they charge, you can craft the right subscription box for your ecommerce business. Remember, you need to show the value of what your customers are getting. Then, you’ll be a lot more likely to increase sales and maximize profitability with recurring revenue.
Consult With the Pros
Would you like to learn more about how to grow your ecommerce business and find out how to make money easily? Reserve your seat at the Ecommerce Empire Builders free sales funnel masterclass. You’ll find out how you can generate a full-time income online without any need for a full business website, touching the products you sell, or expensive ads.