Beauty samples, party beverages and daily comforts are just a few items that could be shipped directly to someone’s doorstep every month. Everyone loves the little pleasures in life and the concept of monthly subscription boxes provides just that. This concept of selling a bundle of products delivered to one’s doorsteps on a recurring basis could possibly be the best thing that’s happening to e-commerce right now. We’re here to convince you why we think subscription box services are a fantastic way to generate revenue.
(Image Source: Kitchen Overlord)
Cheap to Create
The cost of setting up an e-commerce site as compared to a brick and mortar store costs close to nothing. Compared to previous years, more and more products could be sourced by credit and that is always handy for the pockets. And if you’re wondering about the cost of shipping, like for any ecommerce store, there are ways around paying ridiculous fees. For one, reduce the size of your shipping box. Depending on your courier, shipping could be measured by weight or size. Tapering your box a few inches back helps you save a lot on shipping.
In this concept field, Singapore as a region on it’s own has little competition. The circle of entrepreneurs who have tapped into the subscription box market is relatively small. With this said, it is much easier to impress potential customers as compared to convincing users of an established subscription box brand to buy yours instead.
A subscription box business will not experience ‘out of stock’ or ‘backorder’ statues. Why? Subscription box services allow you to gage the amount of orders you have to send out the following week or following month. It is much easier plan and manage your stock. The advantage of having a subscriber list allows brands that send out packages with an expiry date to minimize their wastage.
Subscription box companies witness little fluctuation in their sales -as long as they are providing quality goods and services. The amount of subscriptions acts as an immediate gage as to how much revenue the company is making in a month. You do not have that additional stress of hoping to meet the sales target at the end of the month.
It is a Service in Demand
Lastly, we would like to encourage young entrepreneurs to take a leap of faith by trying to start a subscription box company. As mentioned earlier, Singapore is limited in that field and it wouldn’t hurt to see this market expand in this region.