Shopify subscription box model business is the best way if you have a plan to keep your customers coming back every month and would like to reliably predict how much they will spend over the long run.
You can easily start a subscription model business with low investment and ease of managing with an assured winning factor.
Shopify subscription box model business, and it’s been a key part of every industry that sells everything from coffee to cosmetic products on a recurring billing basis. Subscription boxes are quite easy to manage and having the perfect business model.
Before you are jumping into the steps to start a Subscription model through Shopify, look at the definition of a subscription box business.
What do you mean by subscription box business?
The Shopify subscription box model business is performed when you offer a service or product that will be delivered and billed regularly.
The customer will subscribe to the particular frequently required product, and by doing so, they can experience the benefit like discounts other than in the one time purchase.
The two major products of the subscription box business model are consumables and cosmetics.
So, while choosing the product for Shopify subscription box model businesses that should be run out in a particular period, you will only get the revenue as you expected, and the company receives the success.
Merits and demerits of subscription box model business
Well established stores that sell toys or commodities can expect a lot of revenue by building a good subscription box model business. If you create the proper subscription plans, then you will get the following benefits:
- Only a few amounts is required for customer retention, and the remaining can be kept for acquisition.
- The shipping procedures are pretty simple.
- There is no requirement for many stocks because after getting the subscription orders for a particular product, it can be stocked according to the order, so there won’t be any wastage.
- Customer retention can be done quickly because of this long term subscription plan.
- This subscription box model business makes it easy to predict revenue, and future decisions can be made quickly.
There is also some negative side for subscriptions. So let’s discuss a bit negative aspects of the Shopify subscription box model business:
- A large scale of capital is must essential to induce people to sign up for a subscription plan.
- The turnover rate is unpredictable because customers can cancel the plan at any time.
- Always bring unique products to the subscription plan to make customers more engaged with your subscription box.
Steps required to start subscription box model business on Shopify
Step #1 Add the best subscription box app to your store
Go to the Shopify app store and choose the best subscription box model providing an app that is more apt for your store requirement. Here I will talk based on the “Subscriber” app.
Go to the app store and install the “Subscriber subscriptions app”.
Step #2 Set up your required subscription products
Here I had used a subscription app to create a subscription box; you can see the subscription details of the product on the product page in your Shopify admin section.
If a particular product or any of its varieties have a subscription applied to it, its subscription details will be shown in the product page’s subscription section.
You can enable one of the two options. The first one is that the product can be sold by choosing the only subscription or selecting the option with both subscription and one-time purchases.
Steps to be done:
- Go to Shopify admin →products.
- Choose the product to which you want to apply subscription.
- Select whether to sell the product as a subscription-only or one-time purchase, as well as subscriptions
Step #3 Create subscription plan for your product
Here you can control how your customers will be billed and how will orders be generated up to what extent and also, you can set up subscription plans for your product(s) or collection(s) as well as able set payment methods such as “pay as you go” or “prepaid”.
In this section, you can set a specific discount percentage on your subscription plan and persuade your customers. Here is another option to set maximum and minimum cycle, which means the number of months/weeks up to which the subscription plan is active.
Step #4 Link your Subscription box to a payment gateway
Since, the app used here is “Subscriber” no additional task to link with external payment gateway, because this app’s payment is done through Shopify payment gateway itself. If you are using any other app you need to link with other payment gateway.
Step #5 Make sure your subscription page is in decent form
Signing up for a subscription isn’t a snap choice; your potential customers will have to do their analysis, look around, compare your products to those of competitors. As a result, making your product page as full, detailed, and convincing as possible is a good idea.
Begin with the fundamentals:
- Make a strong call to action.
- Create enthralling product images.
- Use captivating product videos to demonstrate how it appears in real life.
- With a countdown timer, a discount, and other tools, you can create a sense of urgency and FOMO.
- Place upsell and cross-sell sections in strategic locations.
- To increase credibility, use social proof and trust badges.
- Mobile-first design
If implemented right, a subscription box business can be a very profitable concept. The benefits of a steady revenue stream are numerous, but they must be balanced against the increased cost of customer acquisition and the company’s vulnerability in times of financial crisis.
When their bank account is depleted, people are ready to cancel their subscriptions. Try to use the “Subscriber” app for the best subscription box model business experience.
Have a good luck!