text: 7 Ways to Increase Profits on Your eCommerce Subscription Box
  Last Updated: December 20, 2016 Reading Time: 8 minutes
  Everyone likes receiving a gift… even if they sent it themselves. And that simple fact, on its own, could partially explain the massive success of the subscription box industry. After all, it is a business strategy that revolves around periodically receiving a package, often full of delightful surprises… does it really matter who sent it?
  We've written before about why online retailers need to take the subscription business model seriously and listed the reasons why subscription eCommerce in general is profitable and has recently ripened. Here we're going to talk specifically about one of the most lucrative versions of subscription-based eCommerce services: the subscription box.
  Despite how popular the subscription box business is at the moment, it's not so easy that you can just jump on board in the middle. The subscription box business has its own unique and particular best practices, distinguished from other eCommerce techniques. There are concerns about packaging, shipping, marketing, and product sourcing that other single-session eCommerce stores don't need to worry about.
  Here, we're going to talk about the 7 best techniques help your subscription box thrive. For both customer and vendor, a subscription box is the gift that keeps on giving… and giving, and giving, and giving…
  1. Branding and Customized Packaging
  The Box — The color, type of material, and even quality, not to mention extras like a shiny gloss or glitter, will communicate what kind of brand you are, and exhibit a visual cue that gets your customers excited when they see their mail.
  Packing Material — Seemingly small decisions such as the color and amount of tissue paper can have a big impact. Richardson advises to think in terms of "How would your brand package things?"
  Continuity of Products — Of course your type of product reflects the brand identity, but so does consistency. Maintain a continuity among product quality and product features like "healthy" or "organic."
  2. Box Size and Weight
  Small reductions to the size and weight of your box can add up to save you a lot. As we mentioned above, box presentation is a significant issue that traditional eCommerce doesn't have to worry about as much. The point is to send out an abundance of boxes at high frequency, so shaving a little off each one can make a huge difference all together.
  3. Play on Mystery
  Moreover, mystery products break up the monotony of receiving the same package every cycle. While you're trying to prolong your customer retention over time, the longer they stay subscribed, the less interesting the same boxes become. Philip Wilkinson, founder of the subscription gourmet coffee service Kopi, cites this as one of the drawbacks of the subscription eCommerce, saying "a lot of subscription businesses just send the same thing each month and then it just becomes a dull commodity item."
  When done correctly, mystery can be even more alluring that reality. Just look at how many people threw away great deals for the "mystery door" on the classic game show Let's Make a Deal.
  First, subscription box services should outline what their customers can expect in each shipment. These work best when they're vague, so as not to reveal the mystery, but should still tell the type and quantity of each product. Even if you're doing a surprise motif, mention the number of products without giving away what they are.
  Next, be forthright about your billing and cancellation policies. If you allow cancellation any time or the option to skip a month, mention it boldly as a feature. Customers appreciate both the honesty and the freedom. If the customer has questions or concerns, have a customer service line open 24 hours if possible.
  Last, send notifications about charges, shipments, and deliveries. This extends the conversation you have with your customer, which is always good, but particularly in subscription eCommerce where branding is so important. Echoing what we said above, you want your customer to think of your brand as their friend.
  5. Anticipate Scaling
  Part of the allure of subscription boxes is the quick upstart. The focus on niche markets narrows in on a clearly defined group of customers, so marketing and advertising efforts are more efficient. Subscription box companies tend to "take off" quickly, furthering the rumors that anyone can make it big in subscription eCommerce. The truth is a little different.
  Of course, whatever strategy you use, it helps to simply manage your money to have a nest egg. Don't assume your assume income will remain consistent after the first phase of your business. Learn to budget and employ cost-cutting maneuvers, and beware of costly mistakes like free samples, which we'll explain now.
  Free samples may be a tempting way to attract new or more customers, but the model falls short in the long run. In the end you're left with a supplier who's not making enough profit or a high rate of customer churn due to pricing changes or less products.
  The free-sample model originated in a different landscape, when subscription boxes were not so popular. "Discovery boxes" allowed customers to sample new products for a reduced cost and permitted suppliers to get their name out… but they only worked when the competition was slim and the idea was unique. Nowadays, discovery boxes are everywhere, and customer focus veered from abstracts like expert curation and professional recommendations to more quantifiable traits like retail value.
  Source: Allure Beauty Box
  The one exception are niche markets with large mark-ups on the manufacturing cost. The beauty industry, for example: considering the cost of production against the retail value, beauty brands can afford to give up large quantities of free samples on the promise of more sales due to exposure.
  Selling subscription boxes is still a business, and no business is immune from the power of negotiation. Use it to your advantage by striking the best deals from product suppliers.
  Subscription boxes are a peculiar new market that seem to have a timely rise, but offer more substance and staying-power than a mere trend. The industry itself is lucrative, with a eager customer-base and benefits for providers (predictable, recurring revenue, to name one). That makes it more than worth it to learn its equally peculiar sales tactics.
  Do you have any questions on the subscription box industry? Any personal advice that helped your business? Share your thoughts in the comments section now.