40Boxes.com was started during the pandemic by Tory Johnson. She runs a segment on Good Morning America called “Deals & Steals”. This is a very popular segment that drives a ton of sales for merchants that are featured. I have personally seen $300K – $500K in product be sold in one day because of being featured on a “Deals & Steals” segment.
40 Boxes is an extension of the “Deals & Steals” program. For 2 weeks a brand features a product on 40boxes.com. The deal is you must discount that product by 50% (there are some exceptions). They will not run your product if they are not the ones offering the best deal on it.
40 Boxes and Tory Johnson drive traffic to this website and they handle all of the processing and customer service. All you have to do is ship the product out. 40 Boxes keeps a 25% commission from net revenue (after refunds).
So how many orders does 40 Boxes process?
I have been tracking 40 Boxes for a few months now. On average they process about 445 orders per day during that time period.
It is extremely tough to estimate 40 Boxes average order value because they are constantly turning over product and no item lasts longer than 2 weeks on the website. However, from what I can tell the average order value is between $30 and $50.
That means on average 40 Boxes is generating about $13k – $22K in daily revenue. On a monthly basis that is between $400K and $650K.
40 Boxes keeps a 25% commission, so they are making about $100K – $160K each month.
Build an audience and sell to them
This model works for 40 Boxes because they have an audience that was started by Tory Johnson. She is trusted to curate fantastic deals for her followers. Her “Deals & Steals” segments on Good Morning America moves the needle for sales. 40 Boxes is a natural extension to her “Deals & Steals” segment. Tory often directs people on her tv segment to go check out the 40 Boxes website.
Without Tory Johnson’s audience and exposure, this would be a tough business to get off the ground. Why would a brand agree to give you their product for sale at 50% off if you don’t generate them more sales than they would see anywhere else?
There are other people and companies out there that have an audience that this model could work for. I follow Barstool Sports closely and during the pandemic, Dave Portnoy did an unboxing series. Every day he would have hundreds of packages arrive at his house and he would unbox them during a live stream. This was a very popular series.
Barstool could have transitioned that series into a similar model as 40 Boxes. Especially during the pandemic, as Barstool was searching for ways to pick up lost revenue. Barstool could have partnered with brands and curated a collection of products that would be of interest to their audience. Dave could “unbox” those featured items daily and directed the audience to go purchase on their website.
Not only would have this boosted Barstool’s revenue, but it would also have given companies struggling at the time an opportunity to drive their own revenue and help them stay in business.
Build an audience and sell to them (just don’t overdo it, keep it authentic to your brand).