We’ve mentioned at least one of these types of businesses in the past, but it’s worth discussing the broader phenomenon because apparently it is growing pretty rapidly. A recent article in Examiner mentions Birchbox, GoldenTote, and IHeartMD as three examples of recently established subscription box services. They provide, respectively, makeup samples, bags of clothing, and health items, and are part of an industry that investors have given 388 million dollars to in the past two years.
These are businesses that are uniquely built upon the boxes and shipping crates in which they send merchandise to the consumer. They aren’t built upon them in the same way that Box Brothers and other relocation service providers are. But they depend almost entirely on their relationships with such providers of shipping supplies, moving boxes, and shipping crates. Their profit depends on sourcing great products from manufacturers and retailers, packaging them, and efficiently delivering them to subscribers.
As a relatively new but fast growing industry, it’s something that will surely see more entrants in the near future. If any of those newcomers are based in San Francisco, Los Angeles, Seattle, or Las Vegas, they should remember that their shipper is half of their business, and they should consider calling Box Brothers before they get started.