The surprise box can be a Trojan Horse for e-commerce

For many companies using the surprise box model, the subscription itself is not the ultimate goal. Instead, the box serves as a "Trojan Horse"—a low-cost customer acquisition strategy designed to build a much larger and more profitable e-commerce business.

The strategy works as follows:

1. Acquire Customers with a Low-Cost Subscription: Offer a monthly box of samples or products for a relatively low price (e.g., $20/month). This attracts a large base of subscribers who are passionate about the niche.
2. Use the Box for Product Discovery: The monthly delivery acts as a marketing and discovery channel. Customers get to try a variety of products, often for free or at a low cost to the business (if suppliers provide the samples).
3. Incentivize Purchases in an Online Store: The ultimate goal is to convert the subscriber into a regular shopper in the company's online store. This is often done by creating a feedback loop.
   • Example: Conscious Box: They encourage subscribers to rate the products in their box. In return, they earn points that can only be spent as a discount in the Conscious Box online store.
4. Build a Full-Fledged Retail Business: The subscription builds a loyal customer base and provides invaluable data on which products are most popular. This data then informs the inventory and marketing for the e-commerce store, which becomes the primary revenue driver.

In this model, the subscription is the engine of customer acquisition and market research that fuels the much larger retail operation.