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Is There a Birchbox Effect?

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Additional reading: Inside Birchbox's e-Commerce Success.

Consumers will purchase more beauty products online if they are first able to try the products. This is the conclusion of a recent analysis from Slice Intelligence.

The report notes that Birchbox, Ulta.com and Sephora.com customers "spend more on beauty products." In fact, following their subscriptions, Birchbox customers increased their average beauty spend by 38%, compared to 5% and 6% for Ulta and Sephora, respectively.

According to Slice Intelligence, "The 32% of [Birchbox] subscribers that also buy products in the marketplace spent an average of $105.00, and ordered an average of 2.3 times."

This "cross-product loyalty" has boosted Birchbox's business. Today, it's marketplace and subscription sales totals are nearly equal, totaling $115 million and $120 million, respectively.

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