The Ledger
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New competitors paying for samples destroyed Birchbox's zero-cost sourcing model
“Competitors that had launched in the market really changed the dynamic because they started offering money for samples, and brands could not just get the samples paid for, but they could make money on the samples, something that we had never done.”
Birchbox originally acquired its samples for free and sold full-size products
“No, they gave us the samples, and then we would purchase the full size, because it was from the very beginning, it was the full model, which was sampling as the appetizer, and then you can purchase anything you sampled directly from us.”