Subscription Box Business

How Much Does It Cost To Start A Subscription Box Business? (In 2024)

Pat Walls

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Updated: October 5th, 2024

Looking to start a subscription box business?

But curious about:

how much it costs to start a subscription box business?
what are the typical subscription box business startup costs?
or the actual cost of starting subscription box businesses?

Well, we have the data to prove it, supported by real subscription box businesses and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a subscription box business?

Based on our data reported by actual subscription box business founders, the average cost of starting a subscription box business is between $100 and $15,000.

Additionally, our data shows that the the median startup costs for a subscription box business are around $210.

Remember, though, not all subscription box businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of subscription box businesses

Real World Examples: How much does it cost to start a subscription box business?

We asked real subscription box business founders and business owners how much it actually cost to get started?

Here is what they said:

Bemmu Sepponen

Founder of Candy Japan ($6.5K/month)

"There were no costs involved in starting the site, as I receive payment for items in advance, and only buy the necessary amount to ship them."

Bemmu Sepponen is the founder of Candy Japan, a Japanese candy subscription service that began in 2011 and has shipped over $1M worth of candy.

Read this case study

Read by 10,901 founders

Nelli Jeloudar

Founder of Bundleboon ($35K/month)

"Within the first 2 months, I had around 300 pre-orders waiting to be picked, packed and shipped. Those 300 boxes generated revenue of close to €45.000 with only €2000 spent in startup costs (minus the inventory costs)."

Nelli Jeloudar is the founder of Bundleboon, a curated shopping service specialized in kidswear that started in 2017 and has grown significantly since its inception.

Read this case study

Read by 12,394 founders

Lindsay Scholz

Founder of Vowed Box Co. ($400/month)

"In total, my initial launch costs were $2,000 to launch Vowed’s website, design custom packaging, order wholesale goods and fulfill a small initial run of 30 boxes."

Lindsay Scholz is the founder of Vowed Box Co., a curated gift box business for non-traditional brides that launched in 2018.

Read this case study

Read by 31,511 founders

David Dewane

Founder of Mouse Book Club ($10K/month)

"Financially, we had it pretty easy. Each of the co-founders put in a minor amount of money to cover incidental expenses of the crowdfunding campaign."

David Dewane is the founder of Mouse Book Club, a book subscription service that has mailed over 40,000 books to 60+ countries and all 50 states, generating impressive sales of about $170,000 in the first two years.

Read this case study

Read by 9,489 founders

Nicholas Figoli

Founder of EatTiamo ($10K/month)

"In 2017 our innovative business model, the strong inclination for digital solutions and the ability in exporting the products of our network have convinced two Chinese exporters to invest more than $200,000 on EatTiamo and in 2017 we managed to collect almost $280,000 more with a crowdfunding campaign and invest them in communication."

Nicholas Figoli is the co-founder of EatTiamo, a subscription Food Boxes service that delivers Authentic Italian products to American families.

Read this case study

Read by 10,247 founders

Michael Arciola III

Founder of Southern Cigar Co ($20K/month)

"With him now onboard we came up with the business name (fun fact: actually with another good friend, originally 3 of us, who ended up leaving after we all agreed we need to put $1,500 each into the company to be a founder as startup capital)."

Michael Arciola III is the founder of Southern Cigar Co, a cigar subscription box business that he started while studying at Florida State University.

Read this case study

Read by 29,381 founders

Charles Carette

Founder of Bambox ($60K/month)

"Startup cost were close to none, thanks to the cloud and free-tier in SaaS solutions."

Charles Carette is the founder of Bambox, a subscription-based ecommerce business for baby essentials started in 2017 that currently ships more than 1,100 boxes a month.

Read this case study

Read by 17,930 founders

Michael Berk

Founder of Cannabox ($350K/month)

"Our startup costs were around $1,000, including products, the domain, server time, and paying my friends for help."

Michael Berk is the founder of Cannabox, a subscription box business for essential cannabis accessories that has grown to an MRR of $350,000 with 11,000 subscribers.

Read this case study

Read by 15,434 founders

Pam Farley

Founder of Comic Crate ($2K/month)

"Our startup costs for the initial boxes, labels, business cards, and reply postcards were less than $100. We went from idea to income in 6 weeks."

Pam and Gene Farley are the founders of Comic Crate, a curated comic subscription box business that has grown to an average of $1,000 in revenue per month within 18 months.

Read this case study

Read by 7,706 founders

Drew Laine

Founder of PenaltyBox Sports ($400K/month)

"We bootstrapped the business from day one. We had a credit card that was maxed out almost monthly, but we put our heads down and made it work."

Drew Laine is the founder of PenaltyBox Sports, an e-commerce and sporting goods manufacturer that started in 2016 and now generates $275K per month.

Read this case study

Read by 9,371 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful subscription box businesses that you can learn from.

Starting a subscription box business - what you should know:

Starting a subscription box business involves several financial considerations that can significantly impact your budget.

Initial Costs

Initial costs can vary widely depending on the scale of your business. Basic startup expenses may include product inventory ($500-$5,000), website development ($1,000-$5,000), and marketing ($500-$3,000). If you opt for a custom website or high-end marketing campaigns, costs can escalate. On average, expect to spend between $3,000 and $10,000 to get your subscription box business off the ground.

Operational Costs

Operational expenses include monthly costs such as shipping, packing materials, and customer service. Shipping can cost between $3 to $10 per box, while packing materials might add another $1 to $2 per box. Customer service platforms, like Zendesk or Freshdesk, can cost around $50 to $100 monthly. Ensuring efficient operations can help keep these costs manageable.

Marketing and Customer Acquisition

Customer acquisition costs are another critical consideration. Depending on your marketing strategy, you may spend anywhere from $10 to $50 per customer on ads and promotions. Leveraging social media and influencer partnerships can sometimes lower these costs. However, investing in SEO and PPC can range from $500 to $2,000 per month, contingent upon your competition and target audience.

Subscription Management Software

Consider the expenses related to subscription management software. Platforms like Cratejoy or Subbly typically charge a monthly fee between $39 and $200, depending on the features and the number of subscribers you have. Efficient subscription management software can streamline operations and mitigate administrative burdens.

Inventory Management and Storage

Inventory management and storage costs are also important to keep in mind. Renting a storage space can cost between $100 to $500 per month, depending on the size and location. Effective inventory management can prevent overstock and reduce waste, thus saving money in the long run.

By understanding these nuances and planning your budget accordingly, you can better navigate the financial landscape of starting a subscription box business.

Potential Costs of Starting a Subscription Box Business

Starting a subscription box business involves several potential costs, ranging from website hosting fees to labor fees, as well as tools and resources required for operations.

Cost Category	Description	Estimated Cost (USD)
Website Hosting and Domain	Annual cost for website domain and monthly hosting fees	$20 - $100/year (domain)
		$10 - $50/month (hosting)
E-commerce Platform	Subscription to e-commerce platform like Shopify, WooCommerce, etc.	$29 - $299/month
Custom Website Development	One-time cost for custom web development if needed	$1,000 - $10,000
Payment Processing Fees	Fees charged by payment processors like Stripe or PayPal	2.9% + $0.30 per transaction
Product Sourcing and Initial Inventory	Cost for purchasing initial stock for subscription boxes	$1,000 - $10,000+
Packaging Supplies	Boxes, labels, inserts, and other packaging materials	$1.50 - $5.00 per box
Shipping Costs	Expenses related to shipping your boxes to customers	$5 - $20 per box
Marketing and Advertising	Costs for online and offline advertising campaigns	$100 - $5,000+ per month
Graphic Design Services	Fees for logos, branding, and packaging design	$300 - $2,000+
Inventory Management Software	Subscription to software for managing inventory	$30 - $200/month
Customer Service Tools	Software for customer service management (e.g., Zendesk)	$5 - $50/month per agent
Legal and Accounting Services	Costs for legal advice, registration, accounting, and other professional services	$500 - $5,000
Fulfillment Services	Fees for third-party warehousing and fulfillment if outsourced	$2 - $8 per box
Miscellaneous Operational Costs	Various small operational expenses not covered elsewhere	$100 - $500/month
Labor Costs	Salaries for staff, if applicable	$10 - $50/hour
Subscription Management Software	Subscription to a platform for managing subscriptions (e.g., Cratejoy)	$39 - $99/month

Starting a subscription box business requires careful planning and budgeting, as costs can vary significantly based on scale, complexity, and specific business needs.

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Starting A Subscription Box Business: Everything You Need To Know

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