How Does Boxycharm Make Money – Case Study | Prasundigital

Know The Money Making Procedure Of the Boxycharm Business Model

Today in this article we will discuss about how does Boxycharm make money. Boxycharm refers to an online beauty subscription based in Miami, Florida, which surprises a customer on a monthly or quarterly basis with several products from popular, upcoming and fast-moving beauty brands.

Each box is selected, organized and presented by a particular beauty influencer, who might be a mega-star on social networking sites like Facebook or Instagram.

 how does boxycharm make money

Since they work with makeup and cosmetic industries around the globe, customers can be assured of receiving quality products from premium brands. Boxycharm was founded in 2013 and has now become one of the leading subscription boxes in the United States of America. Below, we briefly discuss how Boxycharm makes money.

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Boxycharm products and how does boxycharm make money

The products include skin care, hair care, makeup, fragrances, and nail care. Boxycharm delivers five premium cosmetic and skin care products in a box and an additional bonus box of 4-5 exclusive beauty products at $21.

Those subscribed to Boxycharm can choose between three different kinds of boxes, namely, beauty, makeup and fashion. Each box typically contains five or six samples and a few full-size products for women of all ages to sample or buy.

Hence, Boxycharm has paved its way in being one of the most liked and appreciated products for fashion-conscious women around the globe.

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We now discuss the business strategy and the money-making procedure of the Boxycharm business model. We enumerate how Boxycharm makes money.

To begin with, Boxycharm has a subscription-based business strategy where the potential customers must fill out the online form on the Boxycharm website. The greater the number of subscriptions, the more profit the model will reap.

Boxycharm Monthly Subscription

Boxycharm’s monthly subscription charges generate the biggest chunk of its revenue. The subscription plans for one, three, six and twelve months are worth $25, $70, $138 and $275, respectively. However, a customer doesn’t need to be subscribed here. They can also buy single products from the store and even recreate a few of the past boxes.

Boxycharm first acquires the top products in bulk quantities or shipments from various cosmetic firms that it is tied up with, which helps to sell products cheap. Purchasing cosmetics in bulk at a wholesale rate could be very economical and sell cheap. These products are then advertised in their boxes.

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Boxycharm Marketing Strategy

An additional fact in its marketing strategy that serves as a plus point for Boxycharm is that it does not have to pay any rent or wages, given that it is a completely online platform. Furthermore, beauty brands and cosmetic companies spend millions on their products, which acts as an advantage for Boxycharm, which ultimately gains revenue upon selling these same products.

Moreover, Boxycharm heavily relies on the application of the technique of Search Engine Optimization (SEO) for its website and sales. Owing to their SEO prowess, more and more customers come knocking on the door of this site.

The Boxycharm model’s marketing strategy also considers that when a certain number of goods are sold, every additional unit would also become profitable. They also applied the principle of offering customers a full-sized product at a competitive price instead of sourcing samples for free.

Boxycharm’s Beginnings: A Brief History

In November 2016, the company raised its first investment from a private equity investor known as KarpReilly. The investment sum was, however, not disclosed. From then onwards, Boxycharm has received funds and assets from several organizations.

It also continued to refine its offering. In September 2018, the Luxe box was introduced, which offered customers more opportunities to discover new products. That year, the company generated around $137 million in annual revenue.

October 2019 marked their collaboration with the Facetune app, allowing users to test the premium products through augmented reality technology. But the biggest boost in its market was recorded in 2020, which marked the year of the Covid-19 lockdown.

There was a paradigm shift in shopping, where Shoppers turned to online websites and e-commerce sites for shopping. Many cosmetic giants had to shut down ad face immense losses during that period.

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But, Boxycharm was there to fully take advantage as it had already been an eminent part of the online cosmetics market and had gained its customers’ trust and loyalty by then. The company could generate $500 million in revenue in 2020 alone.


We hope that the points mentioned above have helped us gain and construct some ideas about the successful business model of Boxycharm and how Boxycharm makes money.

Boxycharm has been a boon to several people worldwide, especially for those whole prefer buying their cosmetics in bulk at a reasonable price.

The ever-increasing sales and profits of Boxycharm give us hope that the company will fare well in the coming years and help several potential buyers in the process.

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