PHOENIX - Industry-leading cannabis subscription box service Cannabox is partnering with lifestyle and accessory brand Ja...
1. Cannabis can be intimidating for new users
With the rise of cannabis legalization across the U.S., new cannabis accessories are being launched into the market every day. This can be overwhelming for new users, who may have a hard time choosing from this endless selection of products. There needs to be a simpler, non-intimidating introduction to these accessories for folks who are just beginning to explore cannabis.
2. Traditional head shops are dying, and users need products on a regular basis
The traditional brick and mortar retail market share of consumer products is shrinking every day, and cannabis users are relying more often on online shopping. As most cannabis accessories are non-durable (rolling papers or hemp wraps), these products have to be purchased on a regular basis. There needs to be an automated solution that gets cannabis users their accessories in a timely and convenient manner.
Cannabox: your cannabis essentials, delivered monthly
Cannabox was created as the first cannabis accessories subscription box in 2013 to help people discover new cannabis products and essentials in a unique, safe, and fun way. Each month, members receive a curated, themed box with 6-8 premium products, such as glass, rolling papers, wraps, accessories, gear, snacks, and more. All items are carefully hand-selected and designed by Cannabox experts, and most items included are exclusive and cannot be found elsewhere.
New products right to your door
Cannabox is designed to make cannabis usage easy and stress-free. Customers can select the subscription option that best fits their interest, or they can gift Cannabox to family and friends. We then carefully curate each box with a fun monthly theme featuring premium cannabis accessories and have it delivered straight to your door.
Fun Monthly Themes
In-House Designed Glass
$11.5M+ in revenue to date
We've sold over 350K boxes and earned over $11.5M in sales revenue to date. We've fostered a loyal customer community and have designed our platform to maximize user conversion rates, lengthen our customer lifetime value, and lower our cost of acquisition.
Hand-selected boxes that everyone can enjoy
Subscription meets e-commerce
Our main source of revenue comes from our monthly subscription model, which offers three different plans for people to choose from. Customers can also make a one-time Cannabox purchase. After customers sample the products in our boxes, they can re-purchase the items they love directly through our online store, which provides an additional source of revenue.
A majority of the products included in each Cannabox are consumer non-durables, meaning they are used up and need to be replenished on a regular basis. Customers need rolling papers, hemp wraps, lighters, and hemp wick delivered to them monthly, and therefore tend to stick around longer as subscribers.
Online Smoke Shop
Although our main business is our subscription box, our online shop accounted for 35% of our revenue in November 2020. By using marketing tools such as SEO, email marketing, and PPC shopping ads, we grew the shop from non-existent in April 2019 to the signifiant revenue stream it is today.
Covering two huge millennial industries
Cannabox stands at the epicenter of some of the fastest growing millennial markets: cannabis, cannabis accessories, and subscription boxes. Cannabis is projected to become a $47B industry by 2025, with cannabis accessories an additional $40B market. The subscription box space is also experiencing a surge among younger customers, and is estimated to be a $50B+ market by 2024.
A fully curated package for customers
Thinking outside the box
As Cannabox continues to grow, we plan to launch new campaigns, enter the B2B space, and open fulfillment centers to better reach customers around the country.
- National dispensary booth campaign
- Influencer partnerships
- Brand partnerships
- Major PR outreach
- Hiring extra creatives
- PPC Ads
- Development of our own products and brands to reduce costs and increase margins
- Brand/celebrity partnerships to curate their own boxes and products
- Subsidiary brands
- Hiring extra product designers
- Opening a third fulfillment center
- Faster shipping times
- Website upgrades for faster loading times
- Website features to raise conversion rates
- New computers + workstations for in-house devs
- Working directly with cannabis
- Opening more shipping facilities
- Paid, targeted advertising for other brands in specific regions
Bootstrapped since day 1
Cannabox has been completely self-funded and self-sufficient since day 1. Not only have we had to be creative in how to grow our business as a whole—we have also never accepted funds from just any investor, as we would rather wait for the right key investor with market experience to help scale our business.
Being self-sufficient also means staying lean. We've minimized unnecessary costs with a small office, low manufacturing costs, and a modest marketing budget. This has kept our margins as high as possible and has kept us profitable for 8+ years. As our subscriber count grows, we'll be able to produce more products at once, thus lowering our COGS and increasing our margins even further.
Michael has been a passionate cannabis user for 20+ years. After successfully exiting his previous subscription-based business, he used the acquisition funds to start Cannabox. Michael has been the sole founder and CEO since 2013.
Although not a founder, Anthony was onboarded in 2017 as the creative director and head of marketing. Anthony has taken the Cannabox brand to a new level with new marketing strategies, influencer campaigns, innovative product design, and more.