How to Start Subscription Coffee Delivery Service in India

Narendra Kumar

02 Nov, 2019

Are you planning to launch your subscription coffee delivery service in India? If yes, let us start right from scratch.

What is a Subscription Service?

These days, subscription service is gaining a lot of popularity among potential entrepreneurs. As part of this service, a retail product package is directly delivered at the doorstep of the customer on a recurring basis. It is a prevalent marketing strategy and a perfect way of distributing a product. Using this strategy, an opportunity is enjoyed by the product companies where they can successfully reach out to potential customers for the trial of their product, and the customers get to experience a new product on a recurring basis as a surprise. If you are planning to start a subscription coffee delivery service in India, you need to understand the benefits of the service.

The subscription coffee delivery can help you enjoy a lot of benefits. This business type experiences the same market forces as a stock market^[1], bears, and bulls.

How much is Anticipated Revenue from this Business?

It becomes easier to predict the revenue your business can generate on a monthly basis as per the clients who took subscriptions for three, six or twelve months in addition to the new subscribers adding every month. You can predict sales forecasts and revenue. It is very simple to use model, and the customers get recurrently billed and receive coffee at their doorstep every month at the same time. Once signed up, the customers can easily calculate the revenue that they are going to earn on a month-to-month basis.

Develop a rapport with the customers

E-commerce is a burgeoning field, and presently, it is facing a lot of challenges. The biggest problem faced by this niche is acquiring and retaining customers. To escalate the business, the only way out is to understand the nature of the business and make customers aware of the same. Communication with customers is the key to success. Subscription coffee delivery has an advantage in the fact that once a customer has signed up will continue to remain your customer for the subscribed period. This makes, retention of customers easy and results-oriented. In some time, you will be able to grow and cultivate your relationship with your customers. You can also gain a better understanding of the product with its regular feedback. If they suggest something that needs re-evaluation, the same needs to be done. It will also help you in selecting the best inventory.

Thus, this business imparts you with a unique selling proposition or USP of turning a potential customer into a loyal customer making revenue and sales projections easier and more precise.

Do you know LLP Registration or Company Registration can help in ease of Business?

When planning to start a subscription coffee delivery service in India, it is recommended to have an LLP registration or company registrations it makes business easy to do. In the case of LLP or a registered company, opening a bank account and GST registration becomes easy and efficient. Partnerships and proprietorship companies are also allowed on the online marketplaces for selling. In case of litigation, the company gets optimal protection.

Vendor Publicity

Another benefit of subscription coffee delivery is vendors getting good publicity for their new and upcoming products. This platform works wonders for a startup or a new launch product. This also helps in creating and enhancing brand awareness resulting in healthier and higher margins for the vendor.

What are the Challenges faced in Subscription Coffee Delivery Business?

The recurring payment is the primary advantage of a subscription business. In our country, two-step authentication is required when making any online transaction. Thus, you can choose the upfront down payment for the entire subscription duration or ask for a monthly payment from the customers. This policy by RBI proves to be challenging for this business model in our country. Many companies prefer registering themselves in foreign countries as it helps them in accepting international payments.

Another challenge faced by such businesses is fear among customers regarding contracts. They are not comfortable sharing their debit/credit card details where after charging customers monthly, the business runs off. Thus, businesses that can maintain value in their products, services, and operations can flourish and enjoy a successful business.