Subscription Box Business

How Profitable Is A Subscription Box Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Subscription Box Business? (Updated for 2024)

So you want to start a subscription box business?

And the first question that came to your mind was, “well, are subscription box businesses actually profitable?”

Especially considering:

You could start a subscription box business with as low as $100
Based on our data, subscription box businesses generate an average of $1.17M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a subscription box business.

Let’s dive in!

Is a subscription box business profitable?

Yes, a subscription box business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.17M per year with an estimated gross margin of 60%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your subscription box business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your subscription box business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a subscription box business worth it?

If you’re wondering if a subscription box business is worth it, the answer is a big YES. With subscription box businesses, you have the potential to earn $1.17M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a subscription box business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful subscription box businesses case studies.

Examples Of Profitable Subscription Box Businesses

Here are a few examples of profitable subscription box businesses, and a few more details about them:

1. Candy Japan ($78K/year)

After moving to Japan and discovering the diverse and unique candies available, Bemmu Sepponen came up with the idea for Candy Japan. With flavors and varieties that are hard to find outside of Japan, Bemmu decided to start a subscription service that would send surprise boxes of Japanese candy to people all around the world. Since launching in 2011, Candy Japan has shipped over $1 million worth of candy and has paid Bemmu's living expenses in Japan for 7 years.

Is it profitable? Yes
How much money it makes: $78K/year

Starting A Japanese Candy Subscription Service

This case study follows Bemmu Sepponen and his business Candy Japan, a service that has shipped over $1M worth of Japanese candy to people all over the world and has paid Bemmu's living expenses in Japan for seven years, however, the company has seen a decline in subscribers due to changes in the industry and in costs.

Read this case study

Read by 10,901 founders

2. Comic Crate ($24K/year)

Pam and Gene Farley, owners of Comic Crate, came up with the idea after seeing how comic books helped their kids learn to read and love reading. They realized that busy parents didn't have the time to visit a comic book store, so they created a subscription box where parents could choose the rating of the comics received, making it easier for kids to have access to appropriate and engaging content.

Is it profitable? Yes
How much money it makes: $24K/year
How much did it cost to start: $100

How We Started A Curated Comic Subscription Box With $100

Comic Crate is a curated comic subscription box with a unique selling point where the buyer gets to choose the rating of their comics received, grown from a $100 startup to an average of $1,000 in revenue per month in just 18 months.

Read this case study

Read by 7,706 founders

3. PenaltyBox Sports ($4.8M/year)

Drew Laine, Founder and CEO of PenaltyBox Sports, came up with the idea for his business while living in his in-law's basement. With no infrastructure or logistics, he decided to start a subscription box company for ice hockey players just two days before Black Friday. Despite the challenges, the idea took off and now the company has a thriving community of 45,000 passionate hockey parents, players, and fans.

Is it profitable? Yes
How much money it makes: $4.8M/year
How much did it cost to start: $15K

How Starting A Subscription Box For Hockey Lovers Led To A $400K/Month Sporting Goods Online Store

A subscription box business for ice hockey players turned into a thriving e-commerce and sporting goods manufacturer that generated $275k in a month due to leveraging Facebook groups and community building.

Read this case study

Read by 9,371 founders

Learn more about starting a subscription box business:

Where to start?

-> How much does it cost to start a subscription box business?
-> Pros and cons of a subscription box business

Need inspiration?

-> Other subscription box business success stories
-> Marketing ideas for a subscription box business
-> Subscription box business slogans
-> Subscription box business names
-> Subscription box business Instagram bios

Other resources

-> Subscription box business tips

How much can you make with a subscription box business?

With a subscription box business, you can make an average of $1.17M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a subscription box business make a week?

Based on our data, average weekly revenue for a subscription box business ranges around $24.5K. As such, you could see monthly revenues of $97.9K.

To know if your subscription box business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your subscription box business.

How much do subscription box businesses owners make?

The income of a subscription box business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established subscription box business is about $24.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a subscription box business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Subscription Box Business Profit Margins

Generally speaking, a subscription box business can expect profit margin of around 60%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a subscription box business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, subscription box business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, subscription box business owners can ensure long-term sustainability and profitability for their business.

Subscription box business owner salary

The salary of a subscription box business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established subscription box business, in a prime position, might see an average weekly salary around the ballpark of $14.7K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a subscription box business may be a promising business to start - but the success of your subscription box business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable subscription box business.

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Starting A Subscription Box Business: Everything You Need To Know

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