Cratejoy Launches Subscription-as-a-Service Software

Have an existing business and a loyal clientele? Cratejoy may just be what you need to take it to the next level. Cratejoy is

Have an existing business and a loyal clientele? Cratejoy may just be what you need to take it to the next level.Cratejoy is an Austin, TX-based startup that just this week received $4 million in investor funding. It provides customers with a software platform to create and manage their own online subscription box service, where a recurring monthly fee is charged in exchange for a mailed box full of products, the contents of which are variations on the “theme” of the company.One of the first and perhaps the most well known of these services is Dollar Shave Club, which dispenses razors to subscribers at prices below what one would find in the supermarket. Box service startups have exploded in popularity and the subscription retail tactic itself is beginning to be noticed by traditional retail enterprises as a potential new stream of revenue.CEO Amir Elaguizy calls his software “Subscription as a Service,” as it helps customers manage transactions, inventory, shipping, landing pages, and analytics. And Cratejoy’s corporate website states they aim to “take the headaches out of logisitics.”In an interview with VentureBeat, Elaguizy repeated what many of us in the subscription industry know: “A subscription customer is worth 10 times more than a regular customer, because they are the people loyal to that business [who] are most likely to spend more money.”As far as pricing, Cratejoy currently offers four levels of subscription:

  1. A free plan, which charges a $0.50 transaction fee and a 3.75% share of revenue.
  2. The “Carton” plan, which costs $59 a month, with $0.25 charged per transaction along with 2.50% of revenue.
  3. The “Crate” plan, which charges $299 per month, $0.15 per transaction and 1.25% of total revenue.
  4. Custom pricing if your business does more than $500,000 a month in revenue,.

Interestingly, there are no restrictions on what businesses can ship, so print magazines might want to price out Cratejoy’s services versus their current order fulfillment costs. However, with no accompanying management for digital content, Cratejoy might be a better bet for content businesses looking to branch out into shipping products unrelated to information or content. For example, a site offering video lessons of arts and crafts activities could start a separate service of shipping art supplies once a month.What other ways can your business get in on the subscription product craze?

Up Next

Register Now For Email Subscription News Updates!

Search this site

You May Be Interested in: