There’s no question that the future of commerce lies in providing a more personalized experience to consumers. And Birchbox has quietly created an $80 million business out of a subscription e-commerce platform for beauty and grooming brands. In a post-Amazon world, creating a commerce brand, especially using the subscription model, is a huge feat.
Birchbox was one of the early entrants on the subscription commerce scene, launching in 2010. The startup sends its subscribers a box full of sample products ranging from lotions to lipstick and mascara for $10 per month. If customers like what they see, they can go on Birchbox’s site and can buy more. Birchbox has also expanded to other verticals, including entertaining, home and food, men’s products, and even content as well.
Already popular in the U.S., Birchbox has expanded internationally of late, acquiring its French clone, JolieBox, which allowed it to move into France, the UK, Spain and several other European markets.
What’s particularly surprising about Birchbox is that it has only raised $12 million in funding, despite competition from the Samwer Brothers and others. But that may change soon. As Fortune reported last month, Birchbox is raising a huge new round. When rumors of a raise emerged last year, the company was valued between $300 million and $400 million.
But according to the report, Birchbox is growing, and most importantly, the company is creating loyal users who want to buy the products they try via their monthly box.
Barna and Beauchamp have been able to make a real business out of subscription commerce, and accomplish this despite the many challenges founders face in running an e-commerce business. Join us to hear how at Disrupt NY in May.
Our sponsors help make Disrupt happen. If you are interested in learning more about sponsorship opportunities, please contact our sponsorship team here email@example.com.