Based Niche Online Business, Subscription

Based Niche Online Business, Subscription

There is an online niche business model that expands the value (and profitability) of any niche market. Online subscription-based businesses are making a splash in the e-commerce world. In this regard, a lot of offline companies in both B2B (business to business) and B2C (business to consumer) industries are expanding their products and services to the online market through a subscription-based selling model.
And the proceeds continue in this specialized delivery mode – every month!
For B2B companies, you often hear this type of niche service associated with cloud-based or hosted products and services. It’s a software-as-a-service (SaaS) model, where customers access products from your website (or server) and pay a monthly fee for the service, which becomes recurring revenue for you.
Hosted shopping carts, e-commerce solutions, storefronts, and website hosting are examples of subscription-based services that you might use to run an online business.
This same approach to online business is a huge trend, especially when applied to another niche market or product. For example, when it comes to selling to pet owners, BarkBox has figured out how to take advantage of subscription-based selling in a highly profitable niche market. Every month, BarkBox delivers a gift box full of toys, candy, and gadgets for you and your furry best friend.
Monthly rewards are not limited to customers who have four feet (or paws). Healthy living is another niche market that is still gaining ground, and it’s cross-cutting almost all age groups. This niche usually contains products and services that promote a healthy diet and exercise.
Naturebox offers healthy snacks to human customers on a regular basis. The site allows customers to customize selections based on the size of the box (based on the number of snacks included in the box) and on self-selection of a type of snack or surprise with new offers each month.
Or you can send a subscription-based health delivery as a gift. Fees range from $60 for a three-month subscription to nearly $200 for an annual subscription. Revenue from this type of online business adds up to a steady monthly flow.
You may notice that these types of businesses are reminiscent of the fruits of the month clubs that were popular in previous decades. This is the same type of business, but the concept has been updated for the internet and the business is no longer just reserved for fruits and cheeses. Some online companies are creating their own niche with a very narrow product offering.
Foot Cardigan takes a popular product but specializes in only one product – socks!
There’s no end to the type of niche you can create for your online business. But when it comes to creating a niche business using subscription-based products and services, offer the following:
Convenience: Customers are drawn to subscription-based services or products because it’s convenient. Often, these are items that they need on a regular basis, so having them delivered on a regular basis saves a trip to a traditional bricks-and-mortar store.
Savings: More than saving the time it takes to go to an offline store, customers like subscription-based services that save money. If customers agree to receive products on a regular basis, they often expect to trim the normal price tag for the item.
Uniqueness: Sometimes online subscription-based businesses are popular simply because they offer quirky, unusual, or one-of-a-kind products. Customers also like being able to get something that may not be available in their local geographic market.
Simplicity: Especially in B2B markets, customers look for subscription-based services and products because they are easy to use. The same products, often technologies, may be difficult or expensive to maintain at the customer’s business.
A treat: Like the monthly delivery of fun, quirky socks, sometimes customers want to send themselves, or others, a treat. It may not be something they normally buy, particularly on a regular basis, but who doesn’t love to come home and find a special box of goodies waiting for them every month?
No matter what type of product or service you consider offering, delivering it on a subscription basis can add up to a booming e-commerce niche business for you.