If you’re reading this you’re probably wondering how to start a subscription box business.

Or, maybe you’re looking to add a subscription box offering to your existing business model – or perhaps even to assess whether or not a subscription box business is the right choice for you and your business to begin with within the diverse array of subscription business models there are to choose from.

Infographic showing the most popular models for subscription businesses

Now, it’s time to dive in and experience the benefits of the subscription-first model yourself. This guide contains links to tons of useful resources that will make sure that no matter what subscription box ideas you have or what other subscription business models you’re interested in pursuing, you’ll know everything you need to operate successfully. 

We’ve broken this guide up into several sections, starting with an overview of some key information regarding the subscription business industry as a whole (applicable even if you’re in a niche market), and then moving on to each of the main stages you’ll go through during your subscription business, from your first days planning to well past your launch. 

As you read through each article, you’ll learn everything you need to know about key topics for subscription models, including how to combat customer churn, how to master your marketing channels, how to optimize your shipping costs, and more.

Step 1: Educate yourself

Before you start your own subscription business, whether you want to start a subscription box service or any other kind of subscription business model for that matter, it’s good to make sure you’re brushed up on all the basics first. 

People have been making money from online subscription business models since at least 2004, but the industry didn’t really kick off until 2012, and a lot has happened since then. While subscription boxes are still one of the most popular models, the model has been applied to dozens of other types of business too, from online content to access to services. The most successful subscription services follow a set of principles which underpin a lot of the advice we’ve shared here, which are worth reviewing early on in the process.

Now you’ve got a handle on the principles, here’s a quick crash course on subscription businesses and some general context on the industry as a whole, a perfect way to make sure you start your subscription business journey with a solid education and a ton of inspiration.

Read more about the basics of subscription businesses
What is a subscription business model anyway? What is a subscription business model anyway? Subscription business models go so much deeper than your weekly paper. Read this piece for a detailed overview. 7 top facts about subscription commerce 7 top facts about subscription commerce Ready to dive down the rabbit hole? How do you sell subscriptions? How do you sell subscriptions? Whether it's physical or digital products, here's everything you need to know. Subscriptions vs memberships - which one's for me? Subscriptions vs memberships - which one's for me? Explore both models and make the best choice for your business. The subscription business model in action The subscription business model in action Check out some of our favorite businesses here. Learn about churn ahead of time (trust us) Learn about churn ahead of time (trust us) Involuntary or voluntary churn - lower is always better.

Step 2: Start planning

Now you know what’s going on, it’s time to get to work. The planning phase is a key part of building a strong foundation for success, no matter what model you’re considering among all your subscription business ideas, box or otherwise.

While many subscription businesses launch without taking enough time to get a holistic understanding of everything they need to prepare for a successful launch, those that have taken the time to make sure they’re deciding on the right subscription business model as well as validate their business idea and subscription cost have a much better chance of securing recurring revenue and rapid growth.

This is the perfect time to start focusing on customer type and product selection, two of the core principles behind every successful subscription-business. It’s also worth having a think about costs, too, as the price of plugins can definitely stack up over time.

 

Table showing the average cost of starting a subscription business with plugins vs an all-in-one solution

Source: Subbly competitor benchmarking

The following articles will make sure you have a full picture of all the major behind-the-scenes work you need to do before you start to bring your subscription offering to life.

Read more about the planning phase of starting a subscription business
How do I create a business plan? How do I create a business plan? All successful businesses start with a plan. We'll walk you through it! Adding a subscription offering to an existing business Adding a subscription offering to an existing business Don't confine yourself to one-time products - here's why! How do I source products that fit my subscription box theme? How do I source products that fit my subscription box theme? A guide to finding high-quality products for your subscription box. Inspiring subscription box ideas Inspiring subscription box ideas Some of our favorite real-life examples of subscription boxes. A guide to custom packaging A guide to custom packaging Keeping everything aligned with your brand identity is key. Effectively pricing your subscription service Effectively pricing your subscription service Pricing is always a tricky topic, but we've got you covered. The ins and outs of choosing suppliers The ins and outs of choosing suppliers Don't just pick the first one you find on Alibaba!

Step 3: Set up your online store, fulfillment and shipping

Slowly but surely, your subscription business is starting to come to life. Now, it’s time for the fun stuff.  Keeping an operational focus and creating a framework for an integrated customer journey are key here, which entails everything from choosing a subscription box platform and setting up a website that’s optimized for customer acquisition to planning logistics around customer convenience. It’s all part of the game.

💡 Top Tip:
Don't forget to order a prototype box just to make sure everything looks good in person when it arrives - aesthetics and product integrity are hugely important in the subscription box industry.

The more thought you put into how you set all this up, the easier it’ll be to scale once your loyal customer base starts to grow. Remember, it’s best to use a platform designed for your business model – check out the differences between different subscription ecommerce solutions to help make your choice.

Keep reading for the the lowdown on the key aspects of this particularly important stage of entering the subscription market.

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Read more about the crucial operational aspects of starting a subscription box business
Choosing the best ecommerce platform for your subscription model Choosing the best ecommerce platform for your subscription model Hint hint, you know where we're going with this. Design inspiration for your subscription website Design inspiration for your subscription website Discover our range of professional website templates. Logistics, shipping, and more Logistics, shipping, and more Learn how to master these crucial tasks. Outsourced or in-house fulfillment? Outsourced or in-house fulfillment? DIY or not, someone's got to do it! Here's how to make the choice. A blueprint for subscription billing A blueprint for subscription billing Keep that revenue flowing smoothly behind-the-scenes with this guide.

Step 4: Market and promote your box

It’s almost time for liftoff, but you’re not quite there yet. Now, it’s time to start thinking about customer acquisition. As a new subscription business, there’s so much you need to take into account before you launch, particularly when it comes to two of the other principles – demonstrating sales intent and building an integrated business model (for those also offering one-time products). A lot of questions should be going through your mind at this point: 

How do you attract new customers, or, in a similar sense, make potential customers excited to start a subscription? What’s your approach to marketing and promotion – social media marketing campaigns, a unique landing page to build up your email list, a fabulous unboxing experience, or something else?

“The simplest truth of a subscription box is that to engineer real success, you need to create an offering that people 1) easily understand and 2) believe they strongly need in their lives. If you can crack those two elements, you have yourself a real business with incredible potential”
Alex Fleck
Alex Fleck, Subbly Expert

Master your marketing and champion a top-notch customer experience that keeps the human touch intact, even if your customers are thousands of miles away, and watch your customer lifetime value skyrocket.

Read more about the marketing phase... you're almost there!
Setting up a subscription marketing strategy Setting up a subscription marketing strategy Remember: iterate and experiment to maximize ROI. 12 top subscription marketing tips 12 top subscription marketing tips Plus, a bonus tip from a Subbly Expert! The art of writing emails The art of writing emails Writers block got you down? Here's the remedy. How do you build an unforgettable unboxing experience? How do you build an unforgettable unboxing experience? The grand reveal... make sure it's perfect! Top tips on thank you notes Top tips on thank you notes Please and thank you are the magic words... in a subscription context too.

Step 5: Liftoff and beyond

T-minus 5… 4… 3… 2… 1… Liftoff! The good news is, you’ve made it. The other good news is that it’s only uphill from here. Once you’ve launched your subscription box or other subscription model, tons of other factors come into play.

At this stage, customer retention and delighting your existing customers become just as important, if not more important than attracting new customers. Soliciting customer feedback throughout every stage of the customer journey should be a given too.

Tracking your metrics, from the income each subscription cycle contributing to your recurring monthly revenue to the monthly fees you’re spending on third-party plugins is also critically important, while understanding how to forecast into the future doesn’t hurt either… even if you’re one of those founders that was ready to go live in just a few days.

Graphic showing average time to get a subscription business ready to start selling

We’re as excited as you for the launch of your box. Here’s everything to expect from the minute your company goes live onwards.

Read more to master these last few points before you launch. Good luck!
Preparing a successful pre-launch page Preparing a successful pre-launch page Your checklist for a world-class pre-launch page. What metrics and KPIs should you be tracking? What metrics and KPIs should you be tracking? Here's your guide to subscription business analytics. A guide to revenue forecasting A guide to revenue forecasting The closest you'll get to seeing the future. Top strategies for customer retention Top strategies for customer retention It's cheaper to keep customers than acquire new ones. Here's why. What comes next? What comes next? Read our guide to growing your subscription business.

TL;DR

Congratulations! You’ve made it to the end of our blueprint for how to start a subscription business. At this point, there’s probably a lot going through your head, so make sure to bookmark this page to refer back to alongside your notes as you progress along your newly-found entrepreneurial project. Remember – the less platforms and plugins you achieve to build your company, the easier things will be on a long-term basis. Almost every part of this guide can be achieved with Subbly, as thousands of our merchants have found over the years. We invite you to see for yourself – the first 2 weeks are on us.

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By Zaki Gulamani
Сontent creator at Subbly