{"id":1588,"date":"2020-06-24T09:00:42","date_gmt":"2020-06-24T14:00:42","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/how-to-start-a-subscription-box\/"},"modified":"2026-04-20T21:09:06","modified_gmt":"2026-04-20T21:09:06","slug":"how-to-start-a-subscription-box","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/how-to-start-a-subscription-box\/","title":{"rendered":"How to Start a Subscription Box Service in 10 Steps"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What are subscription boxes?<\/a><\/p>\n\n\n\n

Why ecommerce brands offer a subscription order option<\/a><\/p>\n\n\n\n

4 popular products sold in subscription boxes<\/a><\/p>\n\n\n\n

What sets apart the successful subscription boxes from the unsuccessful<\/a><\/p>\n\n\n\n

How to start your subscription box company in 10 steps<\/a><\/p>\n\n\n\n

Subscription boxes that are thriving in 2020<\/a><\/p>\n\n\n\n

How 3PLs like ShipBob can drive revenue<\/a><\/p>\n\n\n\n

Common FAQs on selling a subscription box<\/a><\/p>\n<\/div>\n\n\n\n

Subscription box services are not just a fad. Brands like Birchbox and FabFitFun have paved the way for other subscription brands, and Cratejoy, the world\u2019s first and only subscription box marketplace, makes it easy to start a subscription box company. <\/span><\/p>\n\n\n\n

US-based ecommerce brands alone generate over <\/span>$2.6 billion<\/span><\/a> in revenue with subscriptions. From food products to apparel, subscription boxes offer convenience and cost savings for customers and a recurring revenue stream for ecommerce brands. Talk about a win-win!<\/span><\/p>\n\n\n\n

Using a subscription box service, shoppers can get ingredients delivered to make a fresh meal, freshen up their wardrobe without rummaging through racks, or easily stay on top of their personal care needs.<\/span><\/p>\n\n\n\n

Starting a subscription box company is an exciting endeavor, but there is a lot that goes into it \u2014 including more than just having a great subscription business<\/a> idea. In order to start a subscription rate<\/a> service, you will need to consider everything from sourcing a quality product to thinking through your ecommerce logistics<\/a> strategy. <\/span><\/p>\n\n\n\n

It might seem overwhelming at first, but if you do your research and take the proper steps, there are a lot of services, resources, and technology that will help you run a successful subscription company. <\/span><\/p>\n\n\n\n

Note:<\/strong> The terms \u2018subscription boxes\u2019 and \u2018recurring subscription orders\u2019 are often used interchangeably, but there are slight differences. This article applies to both types of subscription models. <\/span><\/p>\n\n\n\n

What are subscription boxes?<\/h2>\n\n\n\n

Subscription boxes deliver products on a predetermined recurring basis.  Practically anything can be delivered as a subscription, from packaged food items to <\/span>makeup<\/span><\/a>. <\/span> <\/span><\/p>\n\n\n\n

The products delivered can be custom-picked based on a customer\u2019s personal preference each time or <\/span>the same for every order, which can be referred to as a \u2018recurring subscription model.\u2019 This type of ecommerce business model is popular amongst fast-growing <\/span>direct-to-consumer brands<\/span><\/a> as it\u2019s simpler than offering a subscription box service, but still offers convenience and cost savings for the customers while locking in revenue. <\/span><\/p>\n\n\n\n

Why ecommerce brands offer a subscription order option<\/h2>\n\n\n\n

Ever think about why Netflix and Amazon Prime are so popular? You forget you are paying a monthly fee in exchange for the value you get. Not only do <\/span>recurring orders offer a \u2018set it and forget it\u2019 option for customers and brands, there are several other reasons wh<\/span>y ecommerce brands invest in offering a subscription order option. <\/span><\/p>\n\n\n\n

1. Earn recurring revenue<\/h3>\n\n\n\n

While customers can keep receiving the same order without the hassle of reordering, brands don\u2019t have to pay as much to remarket to customers and can potentially recover customer acquisition costs faster. The longer you keep a customer subscribed the greater, the return on investment (ROI). As long as you don\u2019t give them a reason to unsubscribe, they won\u2019t think about canceling and you\u2019ll keep receiving payments. <\/span><\/p>\n\n\n\n

2. Better predict order cadence<\/h3>\n\n\n\n

Subscriptions are great for sales forecasting<\/a> and understanding customer demand month after month. Knowing how many orders need to be fulfilled and shipped ahead of time can significantly improve stock control<\/a> and order management<\/a>. By keeping the right stock levels on hand, you can reduce warehousing<\/a> costs and the capital you have tied up in inventory. <\/span><\/p>\n\n\n\n

3. Offer customers a deal<\/h3>\n\n\n\n

Subscription services offer an option for customers to \u2018subscribe & save\u2019 by having them commit upfront for a discount, rather than pay full price each time they reorder. While subscriptions offer a way for customers to save money, you\u2019re given a monthly, quarterly, or yearly baseline of income and the additional revenue quickly offsets the discount given. <\/span><\/p>\n\n\n\n

1. Razors<\/h3>\n\n\n\n

Dull razors, the right blade replacements, and having enough blade refills are common pain points for people who shave. Razors and razor blades need to be replaced often, so it\u2019s no wonder they have become a popular subscription item. Razor brands like Dollar Shave Club, Billie, and Harry\u2019s have grown significantly due to their convenient subscription box service. <\/span><\/p>\n\n\n\n

Many razor brands also launch new products and provide an option to add other personal care products to a subscription box, such as shaving cream, body wash, and deodorant \u2014 so you can get all your bath and body essentials delivered in one box. <\/span><\/p>\n\n\n\n

2. Snacks and packaged foods<\/h3>\n\n\n\n

Snacks and packaged foods are great for households and individuals who have a busy schedule. Some of the most popular food products delivered with a description include coffee, tea, protein powers, meal replacements, and more. <\/span><\/p>\n\n\n\n

Especially for families, snacks are great to have on subscription so kids never run out of their favorite after-school snacks. What\u2019s great about starting a packaged food subscription box service is that you can continue to offer new items and meet a unique need, such as offering all-natural ingredients, allergy-free, diet-focused, and more. Some great examples of packaged food subscription companies are SnackCrate, Vegancuts, and<\/span>AmpleFoods<\/span><\/a>.<\/span><\/p>\n\n\n\n

3. Personal and self-care products<\/h3>\n\n\n\n

Especially during the coronavirus pandemic, personal care subscription box services make it easy to stay stocked on health, wellness, and hygiene items such as toothbrushes, dental floss, shampoo and conditioner, body wash, deodorant, tampons, makeup, and more. It\u2019s also a great way for shoppers to try new products and personal care brands that are not always found conveniently in stores like Target or Walgreens. <\/span><\/p>\n\n\n\n

4. Medical and digital health products<\/h3>\n\n\n\n

From acne treatments to diabetes kits, subscriptions for medical products are becoming very popular as they provide not only convenience but a way to help people stay on top of their health easily while destigmatizing these products. These types of products also may offer a digital component, such as an app or access to medical support, which helps people better monitor their health without having to take a trip to the doctor\u2019s office. <\/span><\/p>\n\n\n\n

\n

\u201cOur business is almost all subscriptions, and ShipBob\u2019s fulfilment service helps us offer reliable, affordable shipping that shows up at the same time each month. We offer a free one-month supply as part of our initial three-month personalised acne treatment kit from our app. We also sell other products that can be purchased on our website or through the app.\u201d<\/span><\/i><\/p>\n\n\n\n

Oded Harth, CEO & Co-Founder of MDacne<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n

What sets apart the successful subscription boxes from the unsuccessful<\/h2>\n\n\n\n

In order for customers to continue their subscription box service after the first delivery, the post-purchase experience and ability to build strong and more direct customer relationships are critical for long-term growth. But if issues arise that negatively impact the customer experience or makes the subscription unreliable, the customers you worked hard to get are more likely to cancel their subscription. <\/span><\/p>\n\n\n\n

Bullet-proof logistics<\/h3>\n\n\n\n

Brands that offer subscriptions highly benefit from automating the <\/span>order fulfilment<\/span><\/a> process. Especially if you\u2019re considering offering a subscription box service that delivers your line of products<\/a> and provides a customisable experience for the customer (e.g., rules, kits, bundles, etc.), many ecommerce brands work with a <\/span>third-party logistics<\/span><\/a> (3PL) partner so they can spend less time on packing and shipping and more of their valuable time on <\/span>growing their subscription service<\/span><\/a>.<\/span><\/p>\n\n\n\n

An exceptional unboxing experience<\/h3>\n\n\n\n

From <\/span>custom branded boxes<\/span><\/a> or poly mailers to marketing inserts, each detail helps to create a memorable <\/span>unboxing experience<\/span><\/a> \u2014 or the anticipation a shopper has when they are eager to open their package once it gets delivered \u2014 that gives a competitive edge for every single package. By putting extra care into every order, your customers will be excited each time a new order arrives.<\/span><\/p>\n\n\n\n

Every little detail, from <\/span>custom packaging<\/span><\/a> and how it\u2019s packaged, to branded marketing inserts and free samples, can make a big impact on the \u2018unboxing\u2019 experience. <\/span><\/p>\n\n\n\n

For instance, offering branded, personal gift notes<\/a> to your shoppers will make the unboxing experience even more memorable (you can even let your customers add a custom gift note at checkout if they are sending a present to someone special).<\/p>\n\n\n\n

Engaged customers<\/h3>\n\n\n\n

Product discounts are the primary incentive to attract more subscribers, but there are ways to provide more value for customers beyond cost savings. Many ecommerce brands have found success in referring to their subscription box service as a membership program. This makes it fun for customers to subscribe and stay engaged. You can offer discounted prices and shipping costs plus free trials, a first-look at new products, reward points, exclusive content<\/a>, freebies, product samples, and more. <\/span><\/p>\n\n\n\n

\n

\u201cI find you really get to engage with your customers more when you have a subscription relationship. For Jetson, it means that orders to our base are less transactional and more educational or entertaining.\u201d<\/span><\/i><\/p>\n\n\n\n

Stefan Weitz, CEO and founder of <\/span>Jetson<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n

How to start your subscription box company in 10 steps<\/h2>\n\n\n\n

Oftentimes, a subscription company becomes successful because it solves a specific pain point or fills a big gap in the market. If there\u2019s a type of product you wish could be delivered to you on a recurring basis, or would make your life easier if the item(s) could be delivered, rather than searching for it at the store, chances are other shoppers are looking for this solution too. Who knew that Warby Parker would become the biggest online glasses brand by offering five glasses of your choice to try on before you buy? <\/span><\/p>\n\n\n\n

But to make your idea into a reality, there are steps you\u2019ll have to consider first. If you\u2019re ready to start a subscription box company or in the pre-launch phase, here are ten steps to get you started. <\/span><\/p>\n\n\n\n

1. Find your niche<\/h3>\n\n\n\n

Finding an <\/span>ecommerce niche<\/span><\/a> that is underserved will help your subscription offering stand out from the rest. A niche is a market within an industry that sells a specific type or product with a unique differentiator. For instance, you could sell makeup that\u2019s 100% natural and organic, or offer a food product that\u2019s made for a specific type of diet, like dairy-free coffee cream brand Prymal does. <\/span><\/p>\n\n\n\n

\n

\u201cWhen my father was diagnosed with diabetes, I took the initiative to create the perfect sugar-free creamer formula that he would approve of. After two years of trial and error, I finally found it! As my business grew, heading to the post office with bags full of orders was not sustainable, so I decided to work with a 3PL. ShipBob allows entrepreneurs, like myself, do what we do best \u2014 create, sell, and grow!\u201d <\/span><\/i><\/p>\n\n\n\n

Courtney Lee, founder of <\/span>Prymal<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n

2. Perform customer research<\/h3>\n\n\n\n

By 2023, <\/span>75%<\/span><\/a> of ecommerce brands are expected to offer a subscription service. Competition is high, so make sure you know who your audience is and if there\u2019s demand for your offering before you move forward with your idea. You\u2019ll want to choose a <\/span>high-demand product<\/span><\/a> that makes for a great subscription box service (items that are often purchased daily, monthly, or yearly). From there, you\u2019ll have to figure out where your ideal customer shops, how they search for products online, and what they look for in a subscription box service. <\/span><\/p>\n\n\n\n

3. Source products<\/h3>\n\n\n\n

Once you know the type of product you want to sell, it\u2019s time to <\/span>source your products<\/span><\/a>. Sourcing high-quality products is one of the most important steps in creating your subscription offering. There are several avenues you can take to source products, from making them yourself, to working with local stores or suppliers, to <\/span>wholesale distributor<\/span><\/a> options. Another great option is to source from global marketplaces such as Alibaba and Indiamart, which both offer bulk goods at a low cost. <\/span><\/p>\n\n\n\n

4. Test products<\/h3>\n\n\n\n

Once you\u2019ve sourced products, you will want to test them for quality. Have your friends or potential customers test them out and provide feedback. This will help you figure out how to market and brand your product. The more you understand what your potential customers will like about your product (e.g., a body wash that leaves your skin feeling soft and smooth, or a new formula for natural deodorant that people may be skeptical to use unless they try it first), the stronger your branding and messaging can be. <\/span><\/p>\n\n\n\n

5. Design your subscription box<\/h3>\n\n\n\n

Though not a requirement, putting in the extra effort to design a standout subscription box can drive a special \u2018unboxing\u2019 experience. The options you have to design your subscription are endless \u2014 you can brand the exterior of the box with custom printing, or use <\/span>custom packaging<\/span><\/a> tape or branded stickers. <\/span><\/p>\n\n\n\n

This helps you to build brand recognition every single time a subscription box is delivered. Branded boxes might also earn you free social media exposure as customers may want to show off their latest subscription box delivery through photos they share. It\u2019s an example of social commerce<\/a> at its finest. <\/span><\/p>\n\n\n\n

\"MDacne<\/p>\n\n\n\n

However you decide to customise your box, make sure it\u2019s on brand. For example, if you sell an eco-friendly product, the box and <\/span>dunnage<\/span><\/a> should also be <\/span>eco-friendly packaging<\/span><\/a>. <\/span><\/p>\n\n\n\n

6. Set up your ecommerce site<\/h3>\n\n\n\n

There are a lot of great ecommerce platform options. Some of the top ones are Shopify<\/a>, BigCommerce<\/a>, WooCommerce, and Squarespace. Many of the platforms make it easy to set up a subscription box service from recurring billing software to easy-to-integrate subscription apps<\/a>, as well as the option to custom build your own cart with the help of a developer. Here is an overview on how leading ecommerce platforms support subscription orders. <\/span><\/p>\n\n\n\n

Shopify and Shopify Plus<\/h4>\n\n\n\n

If you choose Shopify, the two most popular apps on the Shopify App Store are <\/span>ReCharge<\/span><\/a> and <\/span>Bold Commerce<\/span><\/a>. Both these apps provide great functionality, flexibility, and make it easy to build and scale your subscription offering. <\/span><\/p>\n\n\n\n

BigCommerce (Built-in recurring billing software)<\/h4>\n\n\n\n

With BigCommerce<\/a>, no app is needed to set up recurring billing. They make it convenient, attractive, and easy to encourage larger carts and better conversion rates by allowing your customers flexible ways to pay for goods and services.<\/span><\/p>\n\n\n\n

Merchants with a subscription component to their business can take advantage of recurring billing through subscription features (paying for goods and services on a repeated schedule) and financing (buying now and paying later).  <\/span><\/p>\n\n\n\n

Squarespace (Built-in recurring billing software)<\/h4>\n\n\n\n

With Squarespace\u2019s Advanced<\/a> plan, you can set up recurring billing cycles, edit subscription products, and manage customer subscriptions \u2014 no app or third-party integration needed. <\/span><\/p>\n\n\n\n

Customers are given full visibility with access to details such as the next order date, price, subscription frequency, order history, and billing and shipping information. To manage retail fulfilment<\/a>, you can access tracking information and send customers an order fulfilled notification. Learn more here.<\/span><\/p>\n\n\n\n

WooCommerce and WordPress (WooCommerce Subscriptions plugin)<\/h4>\n\n\n\n

WooCommerce<\/a> offers a paid plugin to manage product subscriptions. With the plugin, you can create and manage products with recurring payments and fully customise your subscription program with product-of-the-month clubs, weekly service subscriptions, and yearly software billing packages. Learn more <\/span>here<\/span><\/a>.<\/span><\/p>\n\n\n\n

7. Choose your subscription options<\/h3>\n\n\n\n

The next step would to choose the type of subscription options you\u2019ll offer. This includes customisation (flavours, colours, quantity, etc.), frequency (weekly, monthly, bi-monthly, quarterly, yearly), and the type of discount or savings you\u2019ll offer.<\/p>\n\n\n\n

<\/p>\n\n\n\n

8. Designate your logistics partner<\/h3>\n\n\n\n

Subscription box fulfilment<\/span><\/a> encompasses storing inventory, picking and packing orders, and shipping products to a customer on a regular, predetermined basis. These shipments can be the same each month or quarter (e.g., razors, toothbrushes, deodorant, etc.) or a different selection of curated products each time (e.g., wardrobe items).<\/span><\/p>\n\n\n\n

Subscription boxes that are curated use an assortment of different products<\/a> from a variety of brands each time (e.g., Birchbox, FabFitFun, Stitch Fix, etc.), which makes it more complex. These types of subscription services are oftentimes not fit for a fulfilment company for distribution. <\/span><\/p>\n\n\n\n

If you\u2019re looking to grow a subscription service that delivers the same products on a recurring basis (weekly, quarterly, monthly, or yearly) and\/or you sell one-off products, then a logistics service provider<\/a> like ShipBob can help you save time by delegating fulfilment tasks and offer a logistics strategy that will get your orders to customers faster while <\/span>reducing shipping costs<\/span><\/a>. <\/span><\/p>\n\n\n\n

9. Shape your marketing strategy<\/h3>\n\n\n\n

To stay competitive, you must have a digital marketing strategy in place for your subscription brand. Many successful ecommerce businesses grew by relying heavily on Facebook and Instagram ads, but with rising ad costs, the barriers to successful advertising are higher than ever before. The type of marketing channels you use depend on your audience and other factors. <\/span><\/p>\n\n\n\n

\n

\u201cMy #1 piece of advice for fellow operators is to make changes to any unprofitable channels. Focus on other channels that can get your brand out there, and invest that next marketing dollar there. Make sure your site and ads are optimised with the right messaging that fit the situation too.\u201d<\/span><\/i><\/p>\n\n\n\n

Leo Carrillo II, CEO & Co-Founder of <\/span>Hair Craft Co.<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n

Besides digital marketing, there are other ways to market your products, from building organic social media following to working with influencers. Before any of your customers turn into subscribers, you need to build trust from the very beginning. You can attract more first-time customers by <\/span>marketing fast and free shipping<\/span><\/a> on their first box on your website, on social, and through paid ads.<\/span><\/p>\n\n\n\n

10. Use email to turn one-time shoppers into repeat buyers<\/h3>\n\n\n\n

If a customer makes a one-time purchase from you, this is a great opportunity to send them a follow-up email showcasing the cost savings of becoming a subscriber. Email marketing<\/a> is a great way to keep your one-time buyers engaged and convert them into long-term customers who make repeat purchases. <\/span><\/p>\n\n\n\n

Modern email newsletter software<\/a> lets you automate this whole process. For example, you could use the subscriber’s buying history to curate a personalised list of best-selling products that you could send them each week. Or, you could make use of data related to buying frequency to remind the customer to reorder when their supplies are about to run out.<\/p>\n\n\n\n

This level of communication isn\u2019t limited to email. SMS is becoming a more popular channel to convert shoppers and have customers reorder through text messages. <\/span><\/p>\n\n\n\n

Subscription boxes that are thriving in 2025<\/h2>\n\n\n\n

From digital health to meal replacements, there is a subscription box company for just about any type of product. The following ecommerce brands offer unique and engaging subscription services that you can\u2019t find anywhere else. Read on to learn more about how offering a product subscription helped them grow. <\/span><\/p>\n\n\n\n

MDacne<\/h3>\n\n\n\n

MDacne offers a subscription-based, personalised acne treatment product for customers. Since MDacne is a tech-focused brand, they use <\/span>ShipBob\u2019s Developer API<\/span><\/a> to fulfil custom personalised kits for their customers. <\/span><\/p>\n\n\n\n

\n

\u201cShipBob\u2019s analytics tool is also really cool. It helps us a lot with planning inventory reorders, seeing when SKUs are going to run out, and we can even set up email notifications so that we\u2019re alerted when a SKU has less than a certain quantity left. There is a lot of value in their technology.\u201d<\/span><\/em><\/p>\n\n\n\n

Oded Harth, CEO & Co-Founder of MDacne<\/span><\/p>\n<\/blockquote>\n\n\n\n

PetLab Co.<\/h3>\n\n\n\n

ShipBob customer PetLab Co. offers a myriad of canine health supplements<\/span>, including gut, skin, and dental health. Customers can subscribe to auto-replenish their everyday pet favorites to ensure they never run out. <\/p>\n\n\n\n

\n

\u201cIn 2022, 79% of our orders with ShipBob reached customers within 0-4 days, and in 2023, this same stat was 85%. Year over year, that’s a 7.45% improvement on average. For a subscription business, this speed and reliability are crucial, and we\u2019ve seen the positive effect on our customers in terms of compliments on our delivery times and fewer outreach related to shipment inquiries.\u201d <\/span><\/i><\/p>\n\n\n\n

Stephanie Lee, Co-CEO at <\/em><\/span><\/i>PetLab <\/span><\/i>Co.<\/a><\/em><\/p>\n<\/blockquote>\n\n\n\n

How 3PLs like ShipBob can drive revenue<\/h2>\n\n\n\n

To offer a subscription box service, you have to think beyond just convenience and cost savings, and more about offering a great product and an experience your customers will love. <\/span><\/p>\n\n\n\n

Don\u2019t forget about <\/span>order fulfilment<\/span><\/a>! If you need help fulfilling recurring subscription orders that go out on a predetermined, recurring basis, ShipBob can help. <\/span><\/p>\n\n\n\n

\n