Cloudycake more like clownycuck
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Cloudycake more like clownycuck

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A story, in parts.
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[23/365] Thank you for letting me know I'm appreciated at work
Boker Subcom....what's your flavor?

Anya is live and ready to show you everything. Watch her strip, dance, and perform exclusive shows just for you. Interact in real-time and make your fantasies come true.
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I am now co-founder of this startup that makes it super easy to setup Subscription Box businesses and websites. It's an out of the box solution. Check it out and feel free to give me feedback :)
Startup Idea Analysis - How to start a Subscription Commerce Startup
Subscription Commerce is very seductive. It is realatively easy to implement from the outside. Some startups in this space have taken the Kids toys route like -Â http://flintobox.com/Â and kukucrate.com
Some startups in this space
http://www.fabbag.com/
http://bakebox.in/
Here are few pointers you need to consider.
What does Subscription Commerce Do?
Peace of Mind Delivery of either frequently used or niche products
What they have to fix?
Get the first 100 paying customers
Decide between dense geographic concentrated vs sparse national shipping
Set clear profit margins and break even volumes
Understand Cost of Acquisition and Long Term Value
Figure out cost effective Acquisition Channels
Manage Supply Chain
Tackle customer complaints
Capture Market Space quickly
The right team
Your tech needs will be least of your problems. You need an Operations Guy, who has some experience in retail and logistics experience. Next comes Sales. A guy who can help you get customers. Finally, you need a person who can handle finance (need not be a hard core finance guy). Simple addition and multiplication skills would do.
Primary Focus - Execution Stage (2-3 months)
Get at-least 100-500 paying customers asap. Don't build a website. Put up a landing page. Call your target customers, meet them at events, talk to them. Get the 100 paying customers and manage all operations manually (if necessary).Â
Next, figure out what products your customers are interested in. It is easy to delight your customer once. But, to be able to continuously deliver value, you need to really understand their expectations and how it changes over time. Don't focus on profitability, just try to break even.
Next Focus -Â Execution Stage (2-6 months)
After you figure out the right products, and have enough customers renewing their subscription, you need to focus on capturing a sizable market size. Build a website, have a clear messaging, have a simple subscription flow.
Figure out the right pricing, build proper logistics.
Start experimenting with different marketing channels. You will have a cost of acquisition. Ensure your cost of acquisition, your renewal rate and long term value add up to considerable profits. Don't bet on scaling first and then trying to break even (unless you have good financial muscle)
Key Parameters to Track
Conversion Rate on Different Customer Acquisition Channels
Retention Rate of existing customers.
Customer satisfaction after 1st delivery, 2nd delivery and 3rd delivery
Cost of delivery - per customer, per geographic location & per month.
Breaking news in the Subscription Ecommerce world: it looks like UPS is amazon's main competitor.Â