Birchbox, a merchant that creates interest in products by providing free samples to consumers, has reported significant growth, via two different selling models: monthly subscriptions and e-Commerce sales. E-Commerce transactions now represent more than 25% of total business sales, according to a company press release.
Birchbox drives brand and product awareness by sending subscribers personalized boxes of product samples once a month — along with detailed product information — then fulfills that demand via the e-Commerce site, which is called the Birchbox Shop. The company has delivered five million boxes to more than 400,000 subscribers to help drive traffic to the site.
Overall, the Birchbox Shop has been a significant source for the company’s growth because it promotes products that are only available online. In fact, more than 50% of all monthly subscribers go on to purchase full-sized products from the Birchbox Shop, while 15% of e-Commerce orders come from nonsubscribers, according to company officials. The e-Commerce site features an online catalog of beauty, grooming and lifestyle products from more than 500 brands, including Benefit, L’Occitane, L’Oreal and Stila. .
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“We’re excited to see the positive response to expanding our presence as a comprehensive retail destination,” said Katia Beauchamp, Co-Founder and Co-CEO of Birchbox. “Discovery is our core competency and we believe the opportunity to generate new demand for products in beauty, grooming and lifestyle is massive.”
