Many small companies in NY are testing out subscription commerce. Early Bird Foods in Brooklyn recently decided to sell one of their bags of olive-oil tinged granola in a Foodzie shipment to about 2,800 customers. Foodzie, a SF-based company, sells monthly subscriptions for its small-batch artisanal food, and wanted to include Early Bird on its shipment. Early Bird agreed, and since then has seen a 30% increase in online sales, according to Crain’s New York Business.
Early Bird is a three-year-old company that had $250,000 in revenue in 2011. Nikisia Davis, owner and founder of Early Bird said, “I only know this through many, many people telling me they received the box. Foodzie markets to people who buy specialty food already—they’ll buy a $9 bag of granola and not blink—and that’s the customer base I’m looking for.” Davis also said she would do a deal like this again. Early Bird is just one of many small companies in NY testing out subscription commerce (subcom), a rapidly growing section of the $200 billion e-commerce market.
Elizabeth Stein, CEO of the three-employee Purely Elizabeth, a Manhattan-based organic, gluten-free food line she founded in 2009, told Crain’s NY that she has seen drastic increase in repeat customers online since she included her cereal samples in an October box from Blissmo, which appeals to shoppers searching for eco-friendly products. “So many people are reluctant to try something new. But this is about giving them an easy trial, and hopefully then they become loyal customers.” Purely Elizabeth has revenues of less than $10 million.