There is quite possibly nothing more exciting than receiving a surprise present. Well, what if you knew that the contents inside would be directly curated to all your wants, needs, and interests? Even better. What makes subscription boxes so popular is the element of mystery and value. Plus it’s something to look forward to every month or season.

What is a Subscription Box?

A subscription box is a specific assortment of multiple products shipped to customers on a recurring basis. There is an array of variations per industry, but they usually work in similar ways. Here are three common types of subscription box business strategies:

  • Recurring deliveries: This involves boxes usually shipped every month. The main selling point of this model is cost and waste savings. 
  • Recurring payments: Recurring deliveries come along with recurring payments from customers. Many companies venture into the subscription box market because they can guarantee additional income each month, plus the value of each customer compounds over time. 
  • Themed boxes: Usually these boxes have a theme that connects all the curated products together. Themed boxes are an excellent way for smaller businesses to expose their products to a much larger audience with a multi-brand subscription box. 

How SnackMagic Put the Magic into Subscription Boxes

Subscription boxes such as the build-your-own snack box company, SnackMagic, found a missing model within the build-your-own option for teams of people as small as 10 to those as large as thousands. Not only do they provide an easy answer for any kind of corporate or group gifting, they also provide an immersive and unique experience. 

We asked Morgan Brod, Merchant Developer for SnackMagic, what makes their company stand out? She explains that they give their customers a vast scale of control. “Recipients have the option to either build their own snack stash from our menu of over 1,500 unique items or organizers can pre-select a curated box, from our variety of themes, that we will masterfully curate for them.” They also offer customizable swag and logo options to take their boxes to the next level.

If you’re considering launching your own subscription box service, take a look at the following steps businesses should take along with some advice from Morgan Brod. 

Starting Your Own Subscription Box: X Simple Steps

Step One: Know Your Niche And Customer

The first thing you need to do is determine what type of subscription box you want to sell. Figure out what you are passionate about and if it can be offered in a catered box. Consider who your target audience is and how to show consumers your subscription box is better than your competitors’.

When it comes to starting a subscription box, “Think outside the box (even outside our bright, eye-catching snack boxes) and find a dynamic way to connect the consumer to your product,” says Brod. “Once we understood what we were working towards, we were able to develop our brand’s image and fill in the missing pieces.”

You want to understand your customer as a person, not just a form of income. Use polls, surveys, or even talk to friends or acquaintances and ask about buying habits, interests, motivations for purchasing, median income, or potential sensitivities. This will help you better curate the products they’ll love. 

Step Two: Decide On Your Subscription Model Type

Do you want a convenience or discovery type of subscription model? Convenience commerce revolves around receiving the same products automatically on a repeat purchase basis. A discovery commerce helps consumers discover and sample new products they might not have otherwise known of or purchased.

For example, SnackMagic has created a customized discovery model. This model works for their target audience of gift-givers because it provides them with the confidence that what they gift someone is something special and customized to their wants and needs. Giving a friend, colleague, or family member a unique gift that is chosen specifically for their preferences is bound to make a lasting impression on any recipient. 

Step Three: Create Content

Come up with a basic content plan and design for your site. At a minimum, you should have a main landing page with more info and how to subscribe to your box. And you should most definitely have a social media plan for several different platforms to communicate your subscription service and create excitement around each monthly box.

Step Four: Set Your Pricing Strategy

You want to choose the best way to maximize your profit margin while serving as many customers as possible. This may be through tiered pricing, single-cost sales, or allowing one-time purchases. 

Step Five: Find Suppliers, Source Inventory, And Build Relationships

Sourcing suppliers is crucial to establishing a lasting and successful subscription box business. You need to find quality products for a price you can afford. In some cases, you can source free products where suppliers cover the costs, while you focus on fulfilling the orders. To achieve this relationship, you have to convince suppliers that the marketing benefits from your box outweigh any costs.

Another option is paid product sourcing, which typically involves signing a contract with a vendor who will sell you products at a set price. This price is usually below MSRP, but most orders also require a minimum order quantity. 

If you are looking to source suppliers and find products across consumer packaged goods categories for your boxes, RangeMe is your solution for simplified discovery. “RangeMe has been a very helpful tool for us, especially in our early stages when we were onboarding suppliers heavily and consistently. It is such an easy way to connect the buyer to a vast network of brands,” explains Brod. 

RangeMe Product Discovery
RangeMe Buyer Product Discovery View

Step Six: Build A Pre-Launch Strategy

Once you have your product offering sorted out, it’s time to start creating an online presence for your business so when you launch customers will swarm to be a part of your community! Here are a few ways you can create hype around your launch:

  • Build social media presence: Create your business Instagram, Facebook, Twitter, and TikTok. Target consumers who may be interested in your services and talk to influencers about collaborating or advertising your product.
  • Create a pre-launch page: By creating a page, you can briefly tell consumers about your subscription business and have them sign up as pre-subscribers who will get early access.
  • Gain email signups and pre-subscribers: Your pre-launch page can collect email addresses of interested people so you can communicate with everyone once you launch!

Step Seven: Create Your Website

You may decide to go with the pre-subscriber approach by using an external platform. If not, you need to consider multiple aspects when deciding what e-commerce route to use. Do your research on this end, but make sure you choose a platform or solution that:

  • Matches your size and reach
  • Has good reviews and is trustworthy
  • Coincides with your brand aesthetic and vision
  • Supports you when you have a technical problem or customer issue
  • Creates an enjoyable customer navigation experience 

Phew! I know that was a lot of information to take in. But there is truly no rest for the wicked (wicked good companies, that is!) when you start a subscription box. And to be honest, there is an endless amount of information outside of these steps that you should know and follow before you begin this journey.

Partnering With an Existing Subscription Retailer

If starting your own subscription box isn’t something you want to do, but you’re intrigued by the overall idea, there is an easier route you can take. As a brand owner, you are most likely consistently looking for ways to get your products in front of new customers and share your brand story with as many people as possible. One fresh way to do so is to get your products into monthly subscription boxes. These days, it seems like you can order monthly subscription boxes for just about anything from pet products, health and beauty products, clothing, to food and beverage products.

An Overview Of The Subscription Box Industry

Subscription or curated boxes (aka “subboxes”) have been around since the early 2000s. Today, thousands of subscription box services exist, but perhaps some of the most well-known companies are FabFitFun, Birchbox, Hello Fresh, BarkBox, and Dollar Shave Club. In the past few years, the subscription box market reached new heights in 2021, projecting more than \$15 billion in sales.

How To Get Your Products Into Retailer Subscription Boxes

Before you do anything, ensure that your product would fit well within the curated box industry. There must be a continuous demand for your product, as the subscription box company will want customers to have a recurring need.

The build-your-own snack box company, SnackMagic, differentiates itself by aiming their business towards a broad group of people, such as sending boxes to work offices. Morgan Brod, Merchant Developer at SnackMagic, expresses that she sources brands that have unique, specialty products. “We want a product to be something that our customers may not have tried before or wouldn’t usually treat themselves to in their everyday shopping experience,” explains Brod. “Our menu philosophy is built on discovery, and these types of products tend to be created by people with a similar vision.”

What To Consider First

Because products featured in subscription boxes will require a recurring need, they shouldn’t be seasonal or based on a short-term sales proposition. Brands will likely need to provide a large number of samples that would be basically given away for free or at a meager cost. And be aware that just having your products featured in monthly subscription boxes is not enough—you need a strong customer retention strategy to turn recipients into returning customers.

SnackMagic has seen a growing trend “towards better-for-you products with recognizable ingredients,” says Brod, and that’s something they consider when choosing products for their monthly boxes.

Best Practices When Promoting Your Products To Subscription Box Retailers

  1. Start a conversation
    Reach out to subbox businesses that sell products in your market niche and find out their requirements for suppliers.
    “As a buyer and a consumer, I am drawn to colorful packaging with clear and digestible labeling,” explains Brod.
  2. Samples, samples, samples!
    Once you connect with a target company, send free samples as a teaser into your product offerings.
  3. Show them what ya got
    If you have a web presence, highlight the appeal of your products specifically for subscription boxes and, most importantly, highlight how your brand values align with theirs.
  4. Offer dropshipping
    When you offer to drop ship products, you warehouse the products so the subscription box company doesn’t have to purchase inventory until you ship the orders.

Parting Advice from SnackMagic

Brand partners are the backbone of what subscription box retailers do. It’s not only about finding brands and products they want to partner with; it has to make sense on the supplier’s end as well. SnackMagic understands that they might not be the perfect fit for every brand but continues to work endlessly to seek out and connect with suppliers that share their menu, philosophy, and vision.

“A mutually beneficial partnership allows us to build strong relationships with our suppliers, one we think doesn’t exist cohesively across the CPG world. We are extremely transparent and communicative when first introducing SnackMagic to a potential supplier and would encourage our brand partners to question any company who isn’t.”

Morgan Brod, Merchant Developer, SnackMagic

Overall, partnering with a subscription box company is a significant commitment with a lot of opportunities, so do your research and be transparent with your values and visions. For companies like SnackMagic, RangeMe has been an excellent outlet to connect with a vast network of brands.

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