how-does-fabfitfun-make-money

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

FabFitFun is an online subscription box service sending electronics, cosmetics, fitness, wellness, and fashion items every quarter. Founded in 2010, it started as a simple website, and as it gained popularity, thus following later on a similar subscription-based model to Birchbox. It now generates revenues through membership services and brand sponsorships.

History of FabFitFun

FabFitFun is an online subscription box service sending items in electronics, cosmetics, fitness, wellness, and fashion every quarter.

The company was founded by brothers Daniel and Michael Broukhim and Katie Echevarria Rosen Kitchens in 2010. FabFitFun was initially launched as a website providing female-oriented content, featuring a newsletter and deals section among other things.

After three years of consistently publishing content, the site started to become very popular. Witnessing the popularity of Birchbox, the founders set about monetizing their traffic. In early 2013, they sold 2,000 boxes to site users in just two days. These boxes were intended to mimic the so-called “swag bags” of full-size products given to editors at brand-sponsored events. 

By 2016, the platform had surpassed 200,000 subscribers after receiving the first round of funding totaling $3.5 million. When similar businesses experienced a downturn, FabFitFun continued to grow by partnering with influencers and brands and building a strong community through video content.

In late 2019, the platform passed 1 million members and $300 million in sales.

FabFitFun revenue generation

Most FabFitFun revenue comes from monthly subscriptions.

In this case, there are two options:

  1. Annual – $45 per box, billed annually at $179.99. This gives users four boxes per year with up to eight different products. Users can also customize their entire box and get early access to add-ons, sales, and shipping.
  2. Seasonal – $49.99 per box, billed quarterly. On this plan, customers can only choose a maximum of four customizations per box. 

Both options contain products from premium and emerging brands. These subscription plans also give access to the FabFitFun Shop, online community, and streaming video channel.

FabFitFun Style

FabFitFun Style is an exclusive personalized styling service for members who must take a quiz to answer questions about their preferred styles and body shape.

With this information, a stylist selects five to six items of tailored clothing and ships them to the customer. The company charges a non-refundable $20 Styling Fee for this service, though the cost can be recouped if the user decides to keep one or more items from the box.

A FabFitFun Styling Pass can also be used to cover the cost of the Styling Fee. This is a prepaid voucher that serves as a form of credit for the purchase of styling services and fashion items.

Brand sponsorships

When FabFitFun assembles its boxes, the company works with brands who want to advertise their products through the subscription service.

Brands may opt to let the company feature its products for free. Alternatively, they may pay an advertising fee.

Key takeaways

  • FabFitFun is an American online subscription box service for beauty, cosmetic, health, fitness, and electronics products. The service was originally launched as a content website offering female-oriented advice and deals.
  • FabFitFun generates revenue through a subscription service, offering two plans according to how frequently the customer would like to pay. The company also charges for a personalized styling service based on information from user questionnaires.
  • FabFitFun works with brands whilst assembling the products for its boxes. Brands may offer products for free in exchange for extra exposure. They may also pay the company an advertising fee.

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

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