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How Does BoxyCharm Make Money? The BoxyCharm Business Model In A Nutshell

BoxyCharm recognized that there was a gap in the popular beauty subscription box market. Most companies were shipping boxes with sample-sized products that were not on trend or seasonally appropriate. As a proponent of the subscription box business model, BoxyCharm makes money via subscription revenue.

Origin Story

BoxyCharm was founded in 2013 by entrepreneur Joe Martin.

Martin recognized that there was a gap in the popular beauty subscription box market. Most companies were shipping boxes with sample-sized products that were not on trend or seasonally appropriate.

The first BoxyCharm subscription box incorporating trendy full-sized products was shipped later that year. For the next three years, Martin invested more of his money to grow the company until a point where it had $20 million in annual revenue. To save on marketing costs, he would feature in subscription box promotions on Instagram and other social media platforms.

He also minimized shipping costs by ensuring each package was under a certain weight and identified countries where he could sell and ship efficiently. As a direct consequence, initial operations were focused on Canada, Mexico, and Puerto Rico.

Today, BoxyCharm claims to have a community of more than 2.4 million followers across its social media platforms. The company is praised as a provider of inclusive, value-for-money subscription boxes offering both beauty and skincare items.

BoxyCharm revenue generation

As a proponent of the subscription box business model, BoxyCharm makes money via subscription revenue.

To get access to a regular beauty box, customers must complete a beauty quiz to help the company create personalized product recommendations.

Once this has been completed, the subscriber has three options:

  1. BoxyCharm ($25/month) – with 5 full-sized products in a base box up to a value of $235. After the first box is delivered, members on the basic plan can choose one item for their next box.
  2. BoxyCharm Premium ($35/month) – with 6 full-sized products up to a value of $275. Premium members receive free shipping and can choose from two items each month. Note that the company allows customers to subscribe to BoxyCharm and BoxyCharm Premium simultaneously.
  3. BoxyCharm Luxe – for an additional $24.99, customers can opt to receive 8 full-sized products every quarter with a value of around $455. This includes makeup, skincare, lifestyle must-haves, and hair tools. The Luxe box replaces the base box in March, June, September, and December.

Add-ons

The purchase of additional products is also available in the BoxyCharm add-ons store. This option is available for those who prefer not to receive a subscription box.

In most cases, shipping is free. However, the company charges $5 for orders sent to Alaska, Hawaii, U.S. Territories, and Canada.

BoxyCharm PopUp

BoxyCharm PopUp is a shopping event featuring large discounts on makeup, skincare, haircare, and lifestyle products.

Discounts may be greater than 80%. As a result, the service is only available to subscribed members.

Key takeaways:

  • BoxyCharm is an American subscription box service for beauty products. It was founded by Joe Martin who noted that similar services did not incorporate full-sized products that were seasonally appropriate.
  • BoxyCharm makes money via three subscription plans, with each differing according to product quality, diversity, and customization.
  • BoxyCharm sells its beauty products on a one-off basis and also runs regular shopping events with heavy discounts for subscribed members.

Read Next: Subscription Business ModelHow Does Birchbox Make Money, How Does Dollar Shave Club Make Money.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"