Photo: Aaron Webb via Flickr
Lately, we’ve seen a lot of “monthly box at your door” startups.
ShoeDazzle, Kim Kardashian’s company, raised $40 million in May; it is valued at $280 million. Subscribers pay $39.95 to receive a purse or a pair of shoes every 30 days.Birchbox recently closed a $10.5 million round of financing; it delivers monthly cosmetics to customers.
Guyhaus delivers monthly toiletries to men.
And so on.
Many of these companies generate real revenue via subscriptions. If all of ShoeDazzle’s 3 million users paid the $40 fee (they don’t), it would generate $120 million per month.
That sounds impressive, but it wouldn’t be hard for a big company to take the wind out of ShoeDazzle’s sails.
Amazon is already killing Guyhaus. It recently launched a “subscribe and save” button. Users can select items, choose quantities and delivery schedules, and receive them in monthly intervals. There is no need to sign up for GuyHaus when a large company like Amazon offers the same service.
Likewise, if Sephora or Nordstrom added a “subscribe” feature, it could send users monthly cosmetics or designer purses; there would be no need to register for ShoeDazzle or Birchbox.
Here’s how a subscribe and save feature like Amazon’s works:
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