Amazon and subscription boxes are an ideal combination for customers looking to save money on products they enjoy regularly. From the comfort of home, customers can select Amazon subscription boxes that suit their interests and needs. Then, they can put it out of their minds and simply wait for their boxes to arrive on schedule.
Amazon Subscription boxes are also a great fit for Amazon sellers since they can increase sales and help growing entrepreneurs access Amazon’s enormous marketplace and expanding customer base.
What is an Amazon subscription box?
Qualified sellers can take on the opportunity to manage Amazon subscription boxes on Amazon.com. Unlike Subscribe and Save items which can be selected by customers individually, Amazon subscription boxes use a model that groups a selection of products together and delivers them to customers at regular intervals. The notable trend of subscription box programs shows that customers appreciate the chance to save on items they love while also trying out new ones. A few successful subscription box enterprises include Hello Fresh (meal prep ingredients), Klutchclub (wellness and health), and Barkbox (canine accessories and snacks).
The subscription box market in America
Between 2013 and 2018 the subscription box market expanded by 100%, and only continued to grow as the world faced the pandemic and online shopping increased.
Amazon was quick to catch onto the opportunity of subscription services and in 2019 subscription services made up nearly $20 billion of Amazon’s revenue, approximately 20% of the company’s total revenue that year.
How do Amazon subscription boxes work?
Given the scale of this opportunity, you might be wondering how a seller can begin offering Amazon subscription boxes.
A subscription box program consists of customers making regular payments, often automatically, and then receiving a selection of products from a particular category or category. Examples include specialty teas, wellness products, and gourmet foods. The Amazon subscription box is sent at regular intervals, perhaps each month, allowing subscribers to enjoy novelty and savings.
Qualifying to sell Amazon subscription boxes is easy as long as a seller can meet the following criteria:
- Holding a professional seller Amazon account – keep in mind that the seller need not be established yet. It is also worth noting that a professional seller account has a monthly cost regardless of the units sold.
- The capacity to provide free shipping to customers in all the US states as well as Guam and Puerto Rico.
- The ability to curate fully assembled subscription boxes ready for customer consumption.
Pros and cons of Amazon subscription boxes
So, you’re intrigued by the opportunity that Amazon subscription boxes offer, but you’re still wondering if it’s the right move for your business. Let’s consider some of the pros and cons.
Pros of selling Amazon subscription boxes
- Amazon boasts an enormous customer base that sellers of Amazon subscription packages can tap into.
- You can operate an Amazon subscription box business from your own home if preferred.
- By selling Amazon subscription boxes as a professional seller on Amazon, you will have access to a variety of professional tools offered by Amazon.
- Even if you are a new or unknown seller, becoming an Amazon seller provides brand recognition that provokes trust in potential customers.
Cons of selling Amazon subscription boxes:
- Given that the subscription box market is growing, competition may be high.
- Finding the right supplier to reliably provide your inventory can be tricky.
- Overhead costs to get started can be considerable since Amazon subscription boxes depend on inventory.
- Self-employment can be lonely and filled with extra admin which is not right for every individual.
After considering the pros and cons, you’ve decided that you’re ready to take the leap and begin selling Amazon subscription boxes. What do you do first? Let’s take a look at the steps you’ll need to take:
- As previously mentioned, you’ll need to create an Amazon seller account if you don’t already have one. Remember that in order to sell Amazon subscription boxes you’ll need to select the Professional selling plan.
- Next, it’s time to choose your niche. Most likely you already have a few ideas, but as you decide keep in mind that customers will want both consistency and novelty in their Amazon subscription boxes. The potential categories are infinite and could range from healthy snacks to scented candles to cat toys.
- After you’ve picked your niche, you can apply to sell Amazon subscription boxes. Don’t be too intimidated by this process – the application will simply request some basic information about you, your niche, and any subscribers you might have already.
- Once you’ve completed your application, you can begin sourcing your products. When choosing your supplier, make sure they have the capacity to provide additional stock as your business grows. Balance reliability and affordability to ensure you and your customers both have the best experience.
- With everything ready to go, the next step is to advertise your Amazon subscription boxes. To promote your boxes effectively, ensure your SEO is on point and consider using sponsored ads to drive sales.
- Finally, it’s time to ship your Amazon subscription boxes to your customers. Choosing the right shipper for your location and your budget is crucial. A bad shipping experience will turn off many customers, and hefty fees can cut your profits quickly. Consider using online tools to compare shipping rates from different carriers to ensure your needs are met.
- At last, it’s time to receive payment from Amazon. Usually, Amazon pays sellers every two weeks; the amount you receive will vary depending on necessary fees. This cash flow is essential to replenishing your inventory and continuing to offer your customers great service.
- Thought you were done? You’re only getting started because now you’ll need to market your business to increase your revenue and drive sales even more. Offering free trials or bonus gifts for new customers are popular tactics as well as establishing a mailing list to keep customers interested. Getting creative and enlisting influencers to share your Amazon subscription boxes with their followers can be a great way to reach new customers as well. Remember to tap into your own social network by sharing your product on social media as well.
Tips for Amazon subscription box sellers
There’s a lot to keep in mind when selling Amazon subscription boxes, but there are a few tricks of the trade that will make it easier.
- Consider the best box size and weight limit in advance. This will streamline your admin.
- Decide the optimal number of items for each box – experts recommend five to 10 items per package.
- Find a balance between originality and consistency in your products – customers want to find their favorite types of items, but some fun new ones too.
- Remember to add fillers and inserts to keep products safe and market your services further.
Going forward selling Amazon subscription boxes
Though getting started can be daunting, you can take steps to grab the opportunity of selling Amazon subscription boxes. As you set up your enterprise, find your niche, and get comfortable with the logistics, you can take part in the growing market of Amazon subscription boxes and expand your business simultaneously.
GETIDA FBA Reimbursement
GETIDA (GET Intelligent Data Analytics) is a powerful software tool that examines the previous 18 months of inventory management transactions to flag errors eligible for FBA reimbursement. It is free to run the report.
It’s also free for a GETIDA team composed of former experienced Amazon employees to file and follow up on reimbursement claims on your behalf. The only charge is a percentage of claims that are approved. And the first $400 of FBA reimbursement is free without charge.
Given the time and effort, GETIDA saves you so you can focus on running your business, it’s a small price to pay to recover potentially substantial reimbursement of FBA errors likely to occur while handling your inventory management.