Red Envelope finds a way to make more money in e-tailing
- Orders rose 21% year over year.
- Average order size rose to $87 versus $79 a year earlier.
- Gross margin rose to 64.3% versus 49.5% a year earlier.
- 84% of Red Envelope's top 50 sellers for the quarter were exclusive to RedEnvelope and 58% were designed in-house, versus 74% and 30% respectively last year.
- Repeat customer traffic increased 38 percent versus a year ago.
The blog points out that Red Envelope has avoided commodity products in three ways:
- Most of its products are exclusive to Red Envelope.
- The majority of its products are designed in-house.
- One third of the products it sold in Q4 were personalized.