How do I check a subscription box’s cost of shipping per box before buying?

Shipping is often the largest variable cost in a subscription box, so work it out yourself. Ask for the carrier invoices and the shipping summary side by side, and divide total spend by boxes actually sent. Check that the box count matches billing records.

Then look beyond the postage. Packaging, inserts, tape, labels and handling time all belong in the real cost of a box. So do lost parcels, damaged parcels and reshipments sent free to customers. Ask how rates are set. Is there a negotiated agreement, a volume tier or an introductory rate? Find out whether the arrangement stays in place after a sale and whether it relies on the current owner. Ask how the seller handles weight changes, such as a heavier item in a box, and who updates the shipping settings when that happens. Small decisions like this explain why a box that looked profitable on paper may not be.

Consider variation. Heavier boxes, remote delivery addresses and international orders may cost more than the average suggests. Ask for the cost by destination if they have it. Your accountant can help you separate fixed and variable costs and confirm that shipping is recorded where you expect, so the margin per box is believable.

Key takeaways

• Divide carrier spend by boxes actually sent, using invoices and billing records.
• Add packaging, handling, lost parcels and free reshipments.
• Ask whether carrier rates are contracted and whether they survive a sale.