For Convenience's Sake.
You are reading the free version of I/O B2B SaaS You can get the full report here.
Convenience Economy
In the age of automation consumers will gladly pay to outsource repetitive tasks to save time. Autopilot repurchases of consumer goods gel well with a generation raised on software subscriptions.
Cutting out the Middleman
An obvious one: Because of eCommerce, brands are less dependent on the brick & mortar traffic of resellers to get their product in front of customers and can reach them directly.
Supply Chain Commoditization
Most steps in the value chain other than R&D have been commoditized by software companies. Anyone with a computer can now set up a DTC brand rather easily.
Brands want increased CLTV, and predictable cashflows. Customers want to minimize effort on repeat purchases.
Brand-side
Consumer-side
Applying the subscription model to consumer products, either through repeat delivery or a hardware-software hybrid.
Key Features
| Attribute | Score | Comments |
|---|---|---|
Cost | Moderate | Low cost of launch. High Ad competition. |
Difficulty | Very Low | All the tools exist to set this up in a weekend. |
Competition | Very High | Extremely low barrier-to-entry. High competition. |
Models 💲
How to make money?
2 more in Pro Report
Leverage 📈
How to scale money?
Margins Optimize the basket size / subscription level, so you get the most return out of your CAC.
Data If your subscription has a software component, or even an interactive profile, more data will lead to more monetization models.
Go-to-Market Strategy 🛫
How to find and attract users?
2 more in Pro Report
Cheat Codes 🎮
How to accelerate the Go-to-Market?
2 more in Pro Report
Buy the Pro Report for even more Online Community Startup Insights.
What you get:
- BONUS: +2 Business Models, +2 Cheat Codes, +2 G2M Strategies, +4 Moats & +3 USPs.
- +4 Validation Methods: The best way to measure Product Market Fit & more.
- +3 MVPs: A step-by-step roll-out of your startup.
- +4 Key Metrics: What to track to guarantee startup success.
- +3 Dream Team Members: The essential co-founders for a super brand.
- +3 D2C Risks: The number one cause of failure for subscription D2C startups.
- +3 Responsible Practices: The most important differentiator in a commoditized market.
👋 That's all, peeps!
See you next time.
⚡️ Need help launching your D2C Product Subscription startup? Check-out our startup coaching, and venture building offering.
Resources
- https://www.cbinsights.com/research/report/subscription-business-model-industries/
- https://notboring.substack.com/p/shopify-and-the-hard-thing-about-a05
- A whole lotta personal experience with bundl.com.