Subscription Box's UK

[Aardvark]

Hello Everyone,

I'm just in the process of getting ready to launch my Subscription Box and wondered if there was anyone with experience of running a successful Subscription Box?

Depending on the products and target audience we may be able to help each other out.

Aard

 

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[V8Bill]

I'll admit, I had to look it up (Fantastic Monthly Subscription Boxes Delivered in the UK). How do you plan on using it?

Edit add: I've been browsing the offerings and was stunned to find they'll send you a toasted cheese sandwich that slips easily through your mail slot. Wow, now that's different. So, anyone can just make up a monthly subscription offering anything physical sent monthly and people sign up. Interesting twist on the model bringing them all together.

I need to get out less.

 

[Aardvark]

I'll admit, I had to look it up (Fantastic Monthly Subscription Boxes Delivered in the UK). How do you plan on using it?

Edit add: I've been browsing the offerings and was stunned to find they'll send you a toasted cheese sandwich that slips easily through your mail slot. Wow, now that's different. So, anyone can just make up a monthly subscription offering anything physical sent monthly and people sign up. Interesting twist on the model bringing them all together.

I need to get out less.

Hi Bill,

There certainly are lots of options out there for it, from what I understand its pretty big business in the US, although I may be wrong?

The part that interested me the most is the reoccurring income, once you have a client as long as you keep them happy then you will have them spending every month. I've noticed that a lot of the boxes seem to be run for interests, hobbies or luxuries, I've found a niche that is a necessity. There's one major player in that market at the moment and they do look pretty strong so the challenge will be taking them on once we are big enough.

I'm 100% confident that I can make a dent in this market, the key is going to be get the brand name out and gaining traction.

Once the wheels have starting turning (we're just finalising the product and website at the moment) then I'll create a progress thread but I don't see the point in creating one yet while the minor things are being done.

 

[V8Bill]

Yeah, there's even one for us Aussies.

I've made (way) more money with subscriptions than anything else I've ever done (apart from selling my subscription business) so it's definitely something that can make a lot of cool regular cash. Good luck with it. Subscriptions are fantastic business.

 

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[MidwestLandlord]

tiegehanley.com

I use this subscription service.

One of the owner's (Aaron) spells out in detail the steps they have taken to build this service. Youtube videos, etc.

He's been on Shark Tank twice.

I think sometimes I'm a customer of his just for his updates on the biz side of things in my email every week haha. (kidding, his product is AMAZING)

Anyway, he's got some great content about running subscription services. Hope that helps.

 

[Scot]

Subscription boxes in the US are pretty popular, I'm not sure how profitable most of them are. There are a couple of big hitters like Birchbox.

I think the unique advantage you have in the UK is that, from what I've heard here at least, is that they haven't quite caught on there yet.


You get to examine the good and the bad of the subscriptions over here and apply it to a business in the U.K.

 

[Aardvark]

tiegehanley.com

I use this subscription service.

One of the owner's (Aaron) spells out in detail the steps they have taken to build this service. Youtube videos, etc.

He's been on Shark Tank twice.

I think sometimes I'm a customer of his just for his updates on the biz side of things in my email every week haha. (kidding, his product is AMAZING)

Anyway, he's got some great content about running subscription services. Hope that helps.

Thanks for that information @MidwestLandlord I'll have a look round and see if I can find his blog etc.

 

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[Aardvark]

Subscription boxes in the US are pretty popular, I'm not sure how profitable most of them are. There are a couple of big hitters like Birchbox.

I think the unique advantage you have in the UK is that, from what I've heard here at least, is that they haven't quite caught on there yet.


You get to examine the good and the bad of the subscriptions over here and apply it to a business in the U.K.

That's my thought, I'm hoping I can be one step ahead of the game.

 

[Aardvark]

Right, so a bit of a update. I got sidetracked the last couple of weeks with Work and Family stuff so I could only crack on with everything today on my day off. Started off with a little disaster with the website, I somehow managed to lock myself out of the domain so I spent 2 hours getting that sorted.

Once I was back in, I looked at everything and thought "Damn this isn't what I had in mind", it just didn't target anyone and was very bland and generic so I started from scratch. The result is a million time better now, it looks clean, it looks professional and more importantly it looks to offer value to the client. I've only a few more pages to complete then it will be ready for the Pre-Launch phase where I hope to collect 1000 emails.

There's a few snags that I'm working out such as SumoMe, MailCheat(Chimp), Yoast however it will just take a little time and a little more work from my side.

The key is going to be driving traffic there, I've come up with a few creative ideas as well as the usual ones and I'm hopeful that I'll hit my target in 8 weeks time.

Next steps;
1. Read all of @Andy Black Adword post's (Not sure if this will drive the right traffic but I'd rather not risk it and give it a shot)
2. Learn as much as I can about Facebook Ads and Instagram Ads
3. Learn how to use Instagram and Facebook effectively
4. Finalise the prototype and get some professional shots done

The overall aim of the first 12 months is to pump everything back into the business and to use any profits to increase value and recognition. I want to offer a product that offers more value, better service and a overall better experience than what is on the market presently.

If anyone can direct me to links they found useful for Facebook Ads, Instagram Mastery or any other information that may be useful I would be extremely grateful.

Its amazing how much you can get done if you just start with the first step and build momentum!

 

[Scot]

This thread had a couple of good bits in it Product launch resource

There are too many social media advertising resources out there to name. But look into a good landing page builder, I use Leadpages. It's worth the money.

Also, don't underestimate the power of retargeting. Actually, don't even do social media ads until you have your pixel on your site. Statistics say something like the average sale happens after 6 touch points.

 

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[Andy Black]

Might be worth having a go at one marketing channel at a time?

Consider also starting hand-to-hand? Engage people where they are...

 

[Aardvark]

This thread had a couple of good bits in it Product launch resource

There are too many social media advertising resources out there to name. But look into a good landing page builder, I use Leadpages. It's worth the money.

Also, don't underestimate the power of retargeting. Actually, don't even do social media ads until you have your pixel on your site. Statistics say something like the average sale happens after 6 touch points.

Thanks Scot,

I looked at Leadpages but went with SumoMe instead, what makes Leadpages better?

Regarding the social media ads and the Facebook Pixel I definitely need to look into that and learn about it more. I'm pretty happy with the landing page that I've created, I think it does a great job.

Another job added to the list, work out the best ways to use Facebook Pixel.

Thanks again

 

[Aardvark]

Might be worth having a go at one marketing channel at a time?

Consider also starting hand-to-hand? Engage people where they are...

Thanks Andy,

The product is aimed at the female market, in fact it was a idea born from my wife's frustrations and my idea for opportunity. It was only once we started looking that we saw someone already does it but they seem to be the only ones.

My wife is quite good mates with a lot of the other mums as my kids school so with a bit of luck she'll be able to get a few orders there which once we add a referral discount in then we should gain some more traction.

 

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[Scot]

Thanks Scot,

I looked at Leadpages but went with SumoMe instead, what makes Leadpages better?

Regarding the social media ads and the Facebook Pixel I definitely need to look into that and learn about it more. I'm pretty happy with the landing page that I've created, I think it does a great job.

Another job added to the list, work out the best ways to use Facebook Pixel.

Thanks again

My apologies, didn't realize SumoMe was a landing page builder. I have used cheap options in the past, but Leadpages has been good to me thus far.

 

[Aardvark]

My apologies, didn't realize SumoMe was a landing page builder. I have used cheap options in the past, but Leadpages has been good to me thus far.

Hi Scot,

I've actually built the site using WordPress and Divi 3.0 however I have built it with its purpose in mind so in my opinion it does the same thing just with the option to access more information if you want.

 

[Andy Black]

Might be worth checking this short video out:

• "Spend your money on diesel and coffee"

 

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[Deri]

A friend of mine gets different types of gin delivered every month.
It's definitely growing here in UK

 

[Sanj Modha]

We're in the process of launching our first box now. It's new to me but I'm using the same principles I followed whilst creating our successful ecomms stores:

1) Find an underserved market - this is not the same as an untapped market. I like competition because if they can sell it, I can sell it too. It's a market with competitors but who's products suck or don't deliver enough value. This is easy since you can sign up to any box and test it as a customer. For example, I wouldn't start a Birchbox or Lootcrate type monthly box because they are industry giants who dominate the space. Others might disagree because they love a challenge and that's totally fine. I'd rather spend my resources going after lower hanging fruit.

2) Traffic - when I first started selling online, I told myself that traffic was as much as 50% of the success of my business. Forward to 2017 and I think that percentage is much higher now because competition is fierce. I believe that any business should be built around the traffic source - how will you drive eyeballs to the product and get them to spend? This is important because some traffic sources don't convert for every product or business.

Do your research, know the demographic and don't rush the process. You'll be fine because there are so many verticals out there with no box businesses ready to be dominated.

Good luck.

 

[Aardvark]

T

We're in the process of launching our first box now. It's new to me but I'm using the same principles I followed whilst creating our successful ecomms stores:

1) Find an underserved market - this is not the same as an untapped market. I like competition because if they can sell it, I can sell it too. It's a market with competitors but who's products suck or don't deliver enough value. This is easy since you can sign up to any box and test it as a customer. For example, I wouldn't start a Birchbox or Lootcrate type monthly box because they are industry giants who dominate the space. Others might disagree because they love a challenge and that's totally fine. I'd rather spend my resources going after lower hanging fruit.

2) Traffic - when I first started selling online, I told myself that traffic was as much as 50% of the success of my business. Forward to 2017 and I think that percentage is much higher now because competition is fierce. I believe that any business should be built around the traffic source - how will you drive eyeballs to the product and get them to spend? This is important because some traffic sources don't convert for every product or business.

Do your research, know the demographic and don't rush the process. You'll be fine because there are so many verticals out there with no box businesses ready to be dominated.

Good luck.

Thanks for your point, good to hear that your working on something similar too.

Regarding traffic, what do you find the most effective way on doing so?

 

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[Sanj Modha]

T


Thanks for your point, good to hear that your working on something similar too.

Regarding traffic, what do you find the most effective way on doing so?

We're using a few different sources. Trying to conquer Reddit for this business too.

 

[Raaa]

I love the subscription-based business model; both online and offline. I mean who doesn't? It's amazingly Fastlane.

I'm not sure what industry or niche your targeting but "Beauty Boxes" are very popular in the UK e.g. Glossybox, Birchbox

Big brands such as Sephora are also loving the subscription boxes business model. I remember reading a paper on it. Noticeably, it was easier for them to make their subscription boxes work, they simply used existing loyalty data to analyze what customers wanted. However, they launched other cool ideas (that may give you a few ideas yourself) such as developing an app that works with each box (SephoraToGo) a beauty app to access content e.g. advice, tips etc. Plus, there is also a physical card (sort of like those smart cards) with every box that customers can take to in-store to get consultations on how to use and get the most out of the products. Sephora did their research and as far as I remember, people wanted curated, popular and prestige items, not random items just to fill the box, that nobody really uses. Products and perceived value of products = lifeblood of the business (along with marketing ofcourse).

In this business, a lot of them seem to have a cult following; and as you know, a strong fanbase for this type of business is a must. Strong branding. Diversify and pivot your brand (just like Birchbox did) and if it succeeds as a box-only model, you can become a complete company (again, how Birchbox soared) if you don't have an established brand already. Just some food for thought.

Another thing I've noticed is that they make the whole process an experience. So, it's not just sending boxes every month, it's giving your customer an experience, virtually every month. For example, each box is meticulously designed (whatever design appeals to that niche) and its often gives the vibe of indulgence and feeling pampered. It’s like a gift you give yourself. A new gift mailed to you every month. It’s worth it to turn the box into an experience for your customer. This greatly increases the perceived value of the product. And that's the kind of thing that creates customers for life.


You might want to look into a company called CrateJoy. They help start-ups with this.

This business model seems to exist for various industries (including a subscription box for "adult toys" however not sure what the average sales revenue for this niche is like). Starbucks also has a subscription box for $19 a month as well as brands like Adidas.

One thing that I'm not liking regarding subscription boxes, is that the barrier to entry is too low; so this automatically doesn't match one of the commandments of Fastlane. And yeah, competition is fierce. You'll need to give serious value for money. In addition, the whole business is volatile - easy to set up and easy to break down. That being said, I wish you the best of luck and keep us updated on your progress!

P.S Definitely going to get into a subscription type model soon.

 

[Aardvark]

I love the subscription-based business model; both online and offline. I mean who doesn't? It's amazingly Fastlane.

I'm not sure what industry or niche your targeting but "Beauty Boxes" are very popular in the UK e.g. Glossybox, Birchbox

Big brands such as Sephora are also loving the subscription boxes business model. I remember reading a paper on it. Noticeably, it was easier for them to make their subscription boxes work, they simply used existing loyalty data to analyze what customers wanted. However, they launched other cool ideas (that may give you a few ideas yourself) such as developing an app that works with each box (SephoraToGo) a beauty app to access content e.g. advice, tips etc. Plus, there is also a physical card (sort of like those smart cards) with every box that customers can take to in-store to get consultations on how to use and get the most out of the products. Sephora did their research and as far as I remember, people wanted curated, popular and prestige items, not random items just to fill the box, that nobody really uses. Products and perceived value of products = lifeblood of the business (along with marketing ofcourse).

In this business, a lot of them seem to have a cult following; and as you know, a strong fanbase for this type of business is a must. Strong branding. Diversify and pivot your brand (just like Birchbox did) and if it succeeds as a box-only model, you can become a complete company (again, how Birchbox soared) if you don't have an established brand already. Just some food for thought.

Another thing I've noticed is that they make the whole process an experience. So, it's not just sending boxes every month, it's giving your customer an experience, virtually every month. For example, each box is meticulously designed (whatever design appeals to that niche) and its often gives the vibe of indulgence and feeling pampered. It’s like a gift you give yourself. A new gift mailed to you every month. It’s worth it to turn the box into an experience for your customer. This greatly increases the perceived value of the product. And that's the kind of thing that creates customers for life.


You might want to look into a company called CrateJoy. They help start-ups with this.

This business model seems to exist for various industries (including a subscription box for "adult toys" however not sure what the average sales revenue for this niche is like). Starbucks also has a subscription box for $19 a month as well as brands like Adidas.

One thing that I'm not liking regarding subscription boxes, is that the barrier to entry is too low; so this automatically doesn't match one of the commandments of Fastlane. And yeah, competition is fierce. You'll need to give serious value for money. In addition, the whole business is volatile - easy to set up and easy to break down. That being said, I wish you the best of luck and keep us updated on your progress!

P.S Definitely going to get into a subscription type model soon.

Thanks Raaa, my concern was the barrier to entry however my way of addressing that was to aim to create that cult following that you mentioned.

It's funny that you mention birch box as that is definitely one of the best ones, the box that I plan on launching is a little bit different but still within the health a beauty sector. My wife receives a box from what I would class as birch boxes rival in the UK however it didn't feel like it had any direction, much as you mentioned it seems set up to demonstrate value via a booklet that was very misleading. E.g they send a 40ml sample of hand cream then advertise the 160ml cost at £20 trying to fool you into thinking "Wow, I just got £20 hand cream for nothing!".

They seem to have taken their eye off the experience and gone purely to demonstrate value. My idea is to leave a lot of the items they use to demonstrate value such as sponges, make up tools and focus on making the experience more of the focus.

I think that if this is done right it has the potential to become fastlane.

 

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