By Armando Roggio
Subscription ecommerce is booming. There are thousands of “box” merchants selling everything from beard oil to brioche — weekly, monthly, and quarterly. Finding a distinct segment in the ecommerce subscription market is vital to success.
Subscription ecommerce has long been one of the most popular forms of online retailing. Its popularity spiked in July 2016 when Unilever, the consumer products firm, agreed to pay $1 billion for Dollar Shave Club, an ecommerce subscription service. Dollar Shave Club showed just how highly valued subscription services and online marketing expertise is in the retail market.
What’s more, this popularity is probably justified, since there is good evidence that subscription retailing can lead to lower costs and more profit. If this all sounds good, you might be wondering what sort of subscription your business could offer.
Here are three questions to help you find your ecommerce subscription niche.
What Problem Does Your Subscription Solve?
Subscriptions are shopping with commitment. Subscribers have not simply bought a product, they have agreed to be automatically billed repeatedly for it. So you’re going to need to give them a reason to make the additional commitment, to subscribe rather than simply buy once.
Typically, ecommerce subscription services will solve a problem in one of three ways:
Replenishment; Discovery; Service.
How Much Competition Will You Face?
Once you know what sort of problem your ecommerce subscription service solves, consider what your competition will be and how much of a challenge those competitors represent.
Look for opportunity. There will be niches with few competitors but also relatively little opportunity. Other markets might have several good competitors but plenty of room for your business, too.
What Would You Buy?
As you look for your ecommerce subscription niche, try to find something you’re passionate about. When you choose a niche that you understand or enjoy, you may be able to service that niche more effectively.
Read the full article at: www.practicalecommerce.com
And check out our 9 Keys to Building a Successful Subscription Business!