Over the past few years, the monthly box concept has become increasingly popular in France.
In this article, we’ll take a look at the advantages of subscription-based sales for your e-commerce business.
We’ll also take a look at the essential steps you need to take to develop your business by launching a monthly box.
Why create a monthly box?
The monthly box business model is based on a subscription principle: every month, customers pay for and receive a box of selected items.
This could be a range of make-up or an assortment of food products, for example.
Why is this business model interesting?
For a start, this new way of consuming allows you to generate recurring income.
Every month, you have a certain number of customers who buy your products, as is the case with any type of service subscription.
Sales are therefore recurrent.
Then you can anticipate your income.
Thanks to the subscription system, you know in advance how many boxes you’re going to sell each month.
It’s also easy to build customer loyalty, because if they like the first box you send them, they’ll stay subscribed.
Last but not least, you’re adapting to a new consumer trend that’s starting to gain a lot of followers.
You’re also promoting brands in an original way that will appeal to your customers.
Prerequisites for launching a monthly box
Coming up with an idea
To start with, you need to come up with an idea that will both attract your prospects and be profitable for you.
To do this, it’s best to get involved in products you’ve mastered, because to be able to offer something new every month, you need to be inventive and know what you’re selling.
Make sure your idea isn’t already established.
For example, beauty product boxes are already very popular, and you’ll have a hard time finding a place for yourself there.
Also, make sure your idea is interesting enough to target enough people.
Indeed, although staying in a niche is the best solution, this niche must interest enough people for you to be profitable.
The contents of the box must be of interest to the customer.
Offer products that they’ll love and that will encourage them to renew their subscription every month.
Indeed, to build customer loyalty, the box must create a surprise effect, and the person who opens it must make constant discoveries: new product ranges, new flavors, etc.
For example, if you want to launch a cheese box, you need to vary the type of cheese offered each month and propose several selections each time.
You can choose to include only your own products in the box.
But, in this case, you need to have a wide variety of items or a very broad range to be able to offer different content every month.
Generally speaking, most people who start out include products from suppliers they’ve canvassed in advance.
You then fill the box with items you’ve bought or collected from other brands, and put together an assortment.
Storage and logistics
Depending on the type of products you sell, storage and logistics will differ.
Bottled beverages weigh a lot, and parcels can be bulky, whereas tea bags are light and fit easily into a small box.
You therefore need to plan storage space to match the quantity of items you expect to sell each month.
You also need to find a service provider who can easily deliver the products to your customers.
Depending on the nature of the products, you’ll need to optimize packaging and delivery time: fresh or perishable products, fragile products, etc.
Finally, to avoid delaying the dispatch of your boxes, make sure you have the necessary stock of products at least a few months in advance.
You should also plan to send boxes to new subscribers during the month.
Launching at the right price
If you’re just starting out, take a look at the competition’s prices to get an idea.
Boxes generally cost no more than €30 per month.
In fact, the price must remain affordable, as the customer will have to pay it on a recurring basis.
The customer shouldn’t see it as a financial constraint, but as a good deal.
The principle of a good deal is to offer a price that is lower than the total value of the products you include in the box.
It’s up to you to adjust your margins.
The customer, on the other hand, should see the monthly box as an opportunity to enjoy good products at a lower price every month.
Allow for brand commissions or product purchasing costs, as well as transport between your various suppliers and your storage location.
Also factor in a cost for the design of the box itself.
After all, the container must be as attractive as the contents.
Promoting your monthly box
Once you’ve developed your concept, it’s time to start promoting and marketing your box.
E-commerce site and management tools
The Internet is a very common communication channel, so creating your own website is essential.
Not only can you sell and promote your products, but you can also manage your subscribers.
Specialized solutions exist for box stores.
They enable you to create a website directly adapted to the box business model, and provide the necessary tools for day-to-day management: subscription management, payment management, parcel tracking, etc.
However, these solutions generally require you to pay a monthly subscription fee, and your website is hosted on their platform.
For greater independence, you can create your monthly box site with the help of a web developer.
He or she will help you install the plugins or modules best suited to the subscription box market.
Customer relations
You need to pamper your existing customers by setting up an after-sales service that responds to their questions or problems quickly and efficiently.
After all, a satisfied customer becomes a loyal one, and will easily recommend your products.
This is particularly timely, given that new customers will first look at reviews and comments before subscribing.
Reward your loyal customers by setting up a referral system.
This way, your loyal customers will talk about you and be rewarded with a discount on their next box if they bring you new subscribers.
Other means of promotion
There are many other ways to promote your monthly box online.
To start with, create a dedicated space to collect emails on your e-commerce site.
You can then send out monthly newsletters to your subscribers so they can find out what’s new.
Social networks are also an excellent means of promotion.
Share the contents of your boxes so that your subscribers can take an interest in them.
After all, it’s by getting a first taste of the content that they’ll be convinced to buy.
Micro-influencers can also promote your box on their social networks or blogs.
To establish a partnership with them, you can offer them a free box that they can then unwrap in front of their subscribers.
So, are you ready to launch a monthly box?
Monthly boxes are a new and evolving consumer trend, and offer great potential for anyone who wants to get started.
Once you’ve come up with the idea and set up a rigorous management system, all you have to do is remain creative about the content of your box, so that you can retain your customers and continue to attract new ones.
Don’t hesitate to give me a call to discuss. As a Prestashop & e-commerce developer, I’ll be happy to advise you on setting up a website tailored to your monthly box project.
