How Lovevery became new parents’ go-to subscription box

Another big shift in the toy industry is the move to subscriptions. Lovevery offers educational toys for kids on a subscription model, with each toy designed for children of a specific age. Subscriptions are easy for consumable products and challenging for durables—to sell a toy subscription is to suggest that it’s a toy the child will get bored of... See more

The company was selling about $50k of subscriptions per week in January and sales grew steadily to about $200k during the last week of November. As with jobs sold on the site, there are no incremental costs associated with each dollar of subscription revenues, which makes for a very attractive business model.

Witte says direct-to-consumer sales, as measured by weekly revenue run rate, are up 4X since before COVID-19, and average order value is up 30%. It recently launched subscriptions, which now represent more than 30% of orders. And the company’s “direct-to-business” wholesale e-commerce channel is up 3X since April, which has helped Recess get into s... See more