How to start a subscription box service
What kitting services are, why subscription boxes are here to stay, five steps to start your own, and the six-step kitting process we run at the warehouse.
- First published
- February 8, 2022
- Topic
- Subscription boxes and kitting
In our modern world, most people shop online and use their smart devices to research and make purchases. With all of the different products available, customers have a wide range of options to find individualized gifts for themselves or friends and loved ones.
Subscription boxes have become increasingly popular over the past few years due to their uniqueness. Many industries use subscription boxes, providing the recipient with a regular treat: new makeup, fashion, food, self-care products, and more, delivered straight to their door.
Kitting and subscriptions, explained
General notes
What are kitting services?
The kitting process combines multiple items into a single marketable product to reduce shipping expenses, SKUs, customer response times, and more. At MGA Innovation, our team will work with you to develop a product strategy that makes the most of the efficiency of kitting and fulfillment.
While all of these industries offer subscription boxes, supplying the products is just one aspect of the business. Distribution, packaging, and inventory are all essential considerations when providing a subscription box. It can be challenging for internal staff to manage all of these moving parts, so many business leaders hire kitting and fulfillment services to help them get things done more effectively.
Why are subscription boxes here to stay?
Subscription boxes offer people flexibility and many different products to enjoy. Customers can purchase one-time gifts or continue receiving them over months or years. According to an article featured in Forbes, consumers have difficulty making decisions when confronted with too many options; and with countless products available online, this dilemma is commonplace.
Subscription boxes take away the stress of decision making, and embrace the concept of limitless choice. They’re the perfect solution for customers that don’t know exactly what they’re looking for. Through subscription boxes, customers can receive items tailored to their interests, whether that be makeup, perfume, food, clothing, or more.
With the ease of buying and the customization options available, subscription boxes make the buying process effortless. When making a purchase is easy and rewarding for customers, they’re likely to do it again. This is one of the key reasons why subscription boxes are so popular and will continue to impact the market.
How to start a subscription box service
Starting a subscription box service can be an excellent step to elevate your business and stand out in the market amongst competitors. Through a subscription box, you can offer your consumers products that they enjoy while building upon brand loyalty and longevity for your business.
Now’s the time for businesses to consider launching subscription boxes, with the help of kitting services. Any e-commerce business that sells subscription boxes or ready-to-assemble products can benefit from using a kitting service. Below we break down simple steps to create a subscription box service.
Five steps to start a subscription box
Step 1: Choose a unique idea
Businesses are coming out with new subscription boxes each day, so the first critical step is to develop a unique idea that sets your business apart from your potential competitors. You can start by narrowing down the products you are interested in and care about to develop a list. Regardless of the industry, there is a niche for everyone.
Step 2: Define your audience
Next, it’s essential to be mindful of the people purchasing your product. When you understand your target audience, you can create better subscription boxes and market to them appropriately. Do some research to find out the age, gender, location and interests of your customer base, and create a tailored marketing strategy.
Step 3: Source your products
One of the next steps is to source your products. Start by finding samples of items you would like to include in your subscription box. You can accomplish this by visiting local stores for ideas, browsing Etsy, eBay, and other retailers. At this point, it’s essential to try to be as accurate as possible so you can market it and showcase to your customers what they would receive with each subscription.
Step 4: Create a branded box and pre-launch
The design of your box will be key to your success. A well-designed piece can set you apart from your competitors and attract customers. MGA can help you create a unique, custom box design that represents your brand and showcases your aesthetic. Once your design is complete, pre-launch your product to let people know what you’re offering and give them a chance to provide feedback.
Step 5: Launch and take orders
Once you have chosen your suppliers, finalized the contents of your box and created a design you’re happy with, it’s time to launch and start taking orders. Finally, you can reach out to your audience with an email marketing campaign to announce your official launch. You can use many sites to do this, with Mailchimp being one of the more popular resources.
The kitting process at the warehouse
At MGA, we are committed to making the kitting and fulfillment process easy, from start to finish. Here is the kitting process from conception to completion. Our streamlined process is designed to save you money and ensure your subscription box is launched smoothly.
Step 1: The idea
You come to MGA with the idea.
Step 2: Box design
MGA designs a custom box, which you will review.
Step 3: Print and assemble
Once approved, MGA prints and assembles your custom boxes.
Step 4: Receive
We receive products for boxes from the client in bulk by direct shipment to MGA.
Step 5: Kit and pack
MGA places the items into each box and packages them securely.
Step 6: Ship
The subscription ships directly to the consumer.
Where the boxes are packed
Receiving, storage, kitting and shipping all happen in one 200,000 sq ft plant in Gurnee, Illinois, against one inventory record. The products you send in bulk are counted into the same record the kitting line draws from, and every box ships from the building it was packed in. The subscription cycle on To the Doorstep shows how a recurring program runs.
Contact us today to get started with kitting and fulfillment you can trust.
The processes behind a subscription box
| Zone | Process |
|---|---|
| Production area | KittingSeparate items combined into one unit under one SKU: subscription boxes, promotional kits, sample packs. |
| Storage | Pick, pack and parcelSingle orders and kits picked to quantity, packed and shipped to the consumer. |
| StorageClimate-controlled, controlled-access storage under one owner-scoped inventory record. |
MGA has been a strategic warehouse and fulfillment partner since 2017. Working together, we have created a more cost effective, efficient process that delivers consistent, high quality service to our subscription box clients.
Vice President, Continuum
Marketing Production Services
Bring us the idea
Tell us what goes in the box, how many subscribers you expect and when the first box ships. We will design the box, kit it and ship it.