Amazon is growing on-demand services after reporting a 20% sales increase in 2015.
Even so, 99.5% of the site’s business comes from subscribers
Fashion-focused e-retailer JustFabulous this year shifted its business model from selling only shoes via subscriptions to a hybrid model that enables non-subscribers to pay a premium to purchase shoes and more on JustFab.com. Despite the shift, 99.5% of the site’s business comes from subscribers. That’s because it offers subscribers a clear value proposition, says Adam Goldenberg, JustFab’s co-CEO. It delivers a personalized shopping experience based on a style quiz consumers take when they visit the site for the first time, and access to more than 125 consultants who will answer individual fashion questions. The model seems to be working. The retailer recently raised $76 million, added new categories, such as denim and jewelry, and expanded into Germany, the United Kingdom and Canada. It plans to enter two more European countries by the end of the first quarter.
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