How to Start a Subscription Business in 2023
In recent years, subscription boxes have taken the ecommerce world by storm. This trend grew even faster since the onset of the pandemic, when more people sought out new ways to keep themselves entertained at home.
Research supports this theory—McKinsey predicts that, by 2025, the subscription box market will reach a staggering $ 473 billion, up from just $ 15 billion in 2019.
So how can you, as an entrepreneur, capitalize on this trend and build your own subscription box business? That’s just what we’ll discuss. In this article, you’ll learn how to choose the right subscription-based business model, how to get started building your business, and plenty of tips for success.h
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What is a subscription business?
Let’s go over the advantages of adopting a subscription business model:
More cash on hand. Subscription companies typically receive payments upfront. Besides being good for cash flow, the buffer provides much-needed peace of mind. Predictable revenue. Knowing how much one has coming in every month helps you forecast everything from sales to inventory requirements. Loyal customers. Subscriptions allow you to personalize the customer experience, which is a catalyst for repeated purchases and …