When it comes to scaling your subscription box, it’s important to create a foundation that allows you to scale your eCommerce business as you please. By revisiting your subscription model and optimizing your shipping strategy, you can begin attracting the customers you need to grow.
Building a Foundation to Scale Your Subscription Box
Clarify Your Subscription Box Pricing
The first step when scaling your subscription box is to review your pricing model. Is it beneficial for your business and does it allow flexibility to scale?
Consider these two essential numbers:
- Cost of Goods Sold (COGS)
- Profit Margins
By determining the cost of goods sold and your total profit margins, you can create a scalable pricing model for the future that ensures a sustainable profit. Start by determining the lowest price you can charge while still maintaining a profit and the highest price you can charge while still remaining competitive.
Are you worried you can’t afford the perfect subscription box while still providing competitive pricing? Talk with Falcon today and see how we can make your subscription dream possible – and profitable.
Optimize Your Subscription Shipping Strategy
Shipping is one of the biggest unavoidable expenses in eCommerce and it’s important to create a shipping strategy that minimizes costs while still meeting the expectations of customers. By developing a strategy that is flexible to scalability, you ensure your business with a customized plan and support system every step of the way.
Step 1: Outsource or In-house Fulfillment?
There comes a time in every eCommerce journey where in-house fulfillment becomes more challenging than beneficial. Depending on the size of your business, in-house fulfillment may still be an advantage for you to continue utilizing. This is especially true if you haven’t outgrown in-house order fulfillment and costs savings are a priority. However, if you have met your breaking point with in-house fulfillment, it’s time to consider a third-party fulfillment partner. Discuss your options with an agent to see how you can scale by outsourcing your growing fulfillment network.
Step 2: Optimize Packaging for Shipping Requirements
Carefully selecting the packaging materials is imperative to scaling your subscription box model. Determining which size of box will keep products safe while also minimizing size and weight to reduce shipping costs is crucial.
- Utilize packaging with right-size dimensions to keep items packed securely.
- Tightly fill spaces with eco-friendly filler to absorb shock and reduce damages.
- Use lightweight material to minimize overall shipping weight.
Step 3: Bring Fulfillment Locations Closer to Customers
Whether you’re fulfilling in-house or with a dedicated 3PL partner, one fact remains: it costs more to ship farther. That’s why it’s beneficial to partner with a 3PL that has multiple fulfillment locations. Having access to multiple distribution centers cut down on delivery time, shipping costs, and GHG emissions. Furthermore, utilizing multiple locations allows you to offer alternative delivery methods to shoppers such as BOPIS options and local pick-up points.</div/
Learn more about retaining customers with Falcon’s eCommerce shipping solutions.
Attracting Loyal Customers to Scale Your Subscription Model
You can prepare your eCommerce to scale in every way but without a dedicated customer base to support your brand, scalability is near impossible. By delivering an attractive and easy shopping experience your target audience, you can retain the support you need to scale.
Compelling Packaging
A unique customer experience is the biggest factor when creating repeat customers out of first-time buyers. Deliver on quality with sustainable packaging, branded elements, and personalized details every shopper will look forward to on a monthly or weekly basis.
Easy to Shop Interface
There is one main aspect to all successful eCommerce websites, interface usability. By providing your customers with a seamless shopping experience you make it that much easier for them to make a purchase. This is essential when it comes to subscription box models.
Make sure your website performs exceptionally and the shopping funnel is a streamlined process with easy-to-read information. Spotlight the unique value of your products with detailed descriptions, realistic photos, and customer reviews, and include clear pricing that reflects the expectations of your shoppers.
Easy Returns
It’s important to build customer loyalty and assurance by offering a clear and reasonable return process. With hassle-free returns, customers don’t have to worry if it doesn’t fit or if they changed their minds. They want to feel confident in your brand’s ability to exchange products until they’re satisfied. Make sure to advertise your return policy for shoppers to clearly see when entering your online store.
Learn how to reduce returns rates by offering fraud-proof eco-friendly return methods.
Conclusion
Whether you’re creating a new subscription box or you’re looking to scale, building a flexible foundation is crucial. Once you’ve determined your sweet spot for pricing structure and optimized your shipping strategy for efficiency, you can set a plan in motion to attract the buyers you need to scale your subscription box.
Scale Your Subscription Service with Falcon
When you partner with Falcon, scalability becomes effortless. Falcon Fulfillment delivers on time-efficient shipping solutions, sustainable packaging materials, easy returns, and everything you need to scale your subscription service seamlessly and cost-effectively. Get in touch today and see how we can streamline your fulfillment towards success.
