Brandless Breaks its Own Rules with New Baby and Pet Range

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By Published On: January 25, 20190 Comments

Known for its $3 price points and no-name labels, the seven-year old company is changing things up with the release of a new subscription model and product categories.

Brand-free online retailer, Brandless, has added baby and pet products to its ranks as it looks to expand its portfolio. But, in a twist move, the e-tailer has broken its $3 price model, upping the price of a number of its new products to as much as $9. The company has defended its decision to offer products outside of its uniform price point, telling the media that 90 percent of its products still wear the $3 price tag.

Brandless’ new pet and baby product categories have higher price points.

The new baby product range includes everything from premium diapers with no latex to cruelty-free baby care products like diaper rash cream. The pet range is also offering a number of eco-friendly products, including non-toxic toys, hemp collars and poo bags that are made with TDPA technology that allows the plastic to break-up quicker in landfills.

This news comes less than a week after the e-commerce business announced it would be launching a subscription model. The subscription service is free of charge, but users need to spend a minimum of $36 per order to qualify for free shipping. The business also says that the monthly box will be automatically filled with the goods customers have selected as ‘re-supplies’.

It’s believed the business has launched a subscription service to assist with its customer retention issues. Reports surfaced last year that claimed retention was one of the biggest challenges Brandless faced in the period between 2017 and 2018. According to a report, only 20 percent of purchasers in 2017 made a repeat purchase the next quarter, and the quarter after that its numbers dropped to only 13 percent.

The business, on the other hand, has proven its strength in acquiring new customers, with more than half of its online purchasers (53 percent) in September 2018 being new customers. Over a 12-month period, the company also reportedly grew its order volume and buyer counts by 326 percent and 293 percent respectively. These numbers will no doubt make investors happy, with the business sitting on almost $300 million in funding.

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