Website Closers® presents a Subscription Box Brand that delivers fun new Electronic Gadgets every quarter. All kind of random gadgets are found in these boxes, from personal coffee cup warmers to drones, projectors and everything in between … there is certain to be something for everybody in one of these quarterly surprise boxes. Finding a specific gift for that certain someone is always hard, but a gift that keeps on giving all year long is one that makes you more memorable as the gift giver.
With an Average Customer LTV of $570, the brand has proven its ability to develop an audience of rave customers that love the products provided in each new box they (or their gifted recipients) receive.
Today, roughly 90% of their profits are from recurring revenue. The company has diversified to include the sale of individual products contained within the boxes and has found that their products are exceptionally popular as gifts. Sales perform well during the holidays.
The foundation of the company is such that the company is well-positioned to scale beyond their DTC Website, which is currently their only sales channel. Outside of their regular subscription box customers, they now also sell individual products that have been showcased in their boxes. They have also begun the process of reaching out to companies to offer their subscription boxes as gifts for their employees and clients.
The company equally benefits from long-standing partnerships with top-name brands eager to have their items included in this company’s boxes. Highly enthusiastic reviews from satisfied customers have become great word-of-mouth advertising to family, friends and coworkers. This shows that over the 6+ years of operations, the company has proven to deliver on its promise to customers.
Subscription boxes, or the recurring delivery of boxes filled with niche products, have soared in popularity in recent years. The key selling point of subscription boxes is that they introduce customers to brands and products they might not have known about otherwise. This enables the company to experiment with brands and products, giving them the freedom to get creative with what they offer their customers. The subscription industry generated $275 billion in 2022 and is projected to grow to $900 billion by 2026.
The number of people searching for subscription boxes has increased every year since 2018. In the past few years, more than 3,000 subscription boxes have been launched in the American market, many of them enjoying huge success and profitability. This company has proven to have staying power through operational efficiency and product creativity.
Launched in 2016, the company was able to attract its customer base after curating a unique set of gadgets, tech and other fun products. Their subscription boxes are filled with third-party products, although the company has also tested branding their own products as supplementary items. As sales have grown, the company has diversified its offerings to customers. More can be done on the private label side as this company grows.
Their boxes are available on both a seasonal and annual subscription plan, both recurring. They also created a category of Mystery Boxes which are a compilation of older products, which have the added benefit of offloading excess inventory. Their Lifestyle Shop offers individual products to purchase, and as noted above, is a great opportunity for the business to move beyond the website into marketplaces like Amazon.com.
These subscriptions are performing well, and most subscribers stay on for up to 2 years. Because of that, their Lifetime Customer Value is considerably higher at $570. Their products appeal to an attractive demographics of individuals from age 30 to 65, with 65% being women and 35% of the sales coming from men.
While sales tend to soar during holidays and events, their subscription boxes and individual items have become popular as gifts no matter the time of year. The fourth quarter of the year can account for up to 30% of the company’s annual revenue, and the company’s B2B sales are getting stronger as they have successfully marketed their products as the ideal corporate gift-giving item. This will become a more significant part of how they generate revenue and will more fully diversify sales throughout the year as time progresses.
For their DTC sales, the company appeals to households earning $200,000+ a year. In an effort to diversify and attract customers with more modest incomes, the company is testing the launch of a “lite” box that would offer 2-4 products (rather than 4-8 in the original ones) and would be sold at a lower price. The company hopes this will help them attract a younger and less affluent demographic.
The company employs a diverse approach to attracting customers. With 20,000+ Instagram followers, this has boosted their organic traffic, giving the company 32,000+ unique monthly visitors to their site. They also have a blog on their website to attract followers, and use video marketing on YouTube, where they have enjoyed 72,000+ views.
The company runs PPC ads on Google and Facebook and uses affiliate marketing as a growth tool. Each method has been successful in getting the company to continue growing its subscriptions.
Their boxes have been recommended by Buzzfeed and have won accolades and awards like Reader’s Choice 2021 from My Subscription Addiction.
This is an exceptionally well-run business, with contractors in place to handle most of the daily operations. The company has also instituted Standard Operating Procedures that enable new contractors to quickly get up to speed.
The company continues to attract strong customer reviews and features on prominent websites that bring more organic traffic and sales. This is a brand with a lot of value, and they are growing just as the subscription industry is doing the same.
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