Bundleboon launched as a side hustle in 2017 but was incorporated in February 2018. We offer young parents with children between 0-8 years old, a unique shopping and unboxing experience by offering them personalized outfits, specifically styled for their children.
The concept works through an online platform;
1. Customers fill in our innovative style quiz within a few minutes
2. We will use the data to curate 2 personalized outfits (6-8 items) and ship them in a box
3. The customers have 5 days to try the outfits
4. They only pay for the items they want to keep and send the rest back to us free of charge.
The business model:
Bundleboon is essentially a retail formula, where we get inventory from brands with a margin of 60% and sell that inventory at full retail price with no additional costs for our customers.
We currently offer more than 50 brands in our boxes and have constructed consignment deals and exclusive wholesale deals with brands, which allows us to lower the inventory risk and still have high enough margin to scale our business.
The balance between our deals with brands gives us flexibility in terms of 1) items in our portfolio, 2) active and steerable margin management and 3) pro-active inventory management. Because of the nature of our deals, we have minimized our risk of inventory waste by not owning all the inventory that we sell. This way, we can continuously update the items that we offer our customers, without the increased capital risk.
Customer acquisition strategy:
Our customer acquisition strategy is built up in 4 groups; Influencer marketing paid ads, retention, and referrals.
We use multiple channels to acquire new customers, but the one that really works well for us is by using influencers. We reach out to real moms, who are active and engaging on Instagram and have them do a nice unboxing video for us in exchange for a box with clothes. If the influencer uses the right approach, we can get up to 35 new customers in pr. influencer. We have also noticed that the average basket size is almost 30% higher when the customer is acquired via one of our influencers.
Paid ads on social media
Next to influencer marketing, we also acquire customers via ads on Facebook and Instagram. The engagement, clicks and conversion are far higher when we use unboxing videos rather than regular photos. Our customer acquisition cost varies between €9-20, depending on the type of advertisement and target audience.
Getting our customers back is our main priority and we spend a lot of time on each of the customers, making sure that they receive a great service. We always call or Whatsapp them for a follow-up chat after they have sent their box back. This way we can truly understand why they sent some items back and what they are looking for in their next box. 21% of our monthly orders are currently from existing customers.