Startup Spotlight #15: Try Before You Buy

Today's featured startup makes it easier than ever before.

Dec 07, 2024

Samplico helps potential buyers discover new brands and products across various categories, such as personal care, baby products, household items, kitchenware, and other goods for home and personal use.

The core feature of the platform is the ability for users to receive products for free — either in their full-size packaging or as smaller samples, depending on the brand’s preference.

To get started, users sign up on the website and provide detailed personal information. Based on this data, Samplico’s algorithms curate personalized product boxes tailored to the user’s preferences.

Naturally, many recipients of these products can’t resist sharing their impressions. The website allows users to leave reviews for each product, turning it into a valuable source of information from real users about unfamiliar items they encounter or hear about.

For brands, the platform serves as a marketing research tool. When a brand lists its product on Samplico, it specifies the target audience it wants to reach. The platform’s algorithms then include the product only in boxes sent to individuals who fit the desired profile.

After sending out a product box, the platform prompts users to fill out surveys about their experience with each item. These survey responses aren’t published as public reviews but are compiled into reports exclusively for the brand to analyze and act on. Samplico likely tracks users’ survey completion rates to prioritize sending future boxes to those who consistently provide feedback.

Brands can also select user reviews they like and feature them on their own websites or marketing channels. Moreover, Samplico’s active user base often shares their experiences with the received products on social media, giving brands an added promotional boost.

The platform is used by both emerging and established brands, which leverage it to test new products or enter new markets and target audiences.

The original concept was launched in Turkey in 2016 under the name Denebunu, which gained significant traction, raising $1.5 million in funding. Samplico represents the global expansion of this model, having raised $1.8 million to scale internationally.

Together, Denebunu and Samplico boast impressive stats: 3 million users in Turkey and the UK, 6 million product shipments, and 4 million reviews published. The startup has also partnered with over 1,000 brands, according to recent press releases.

What’s the Gist?

The number of new brands and products on the market has been skyrocketing in recent years, driven by two key trends:

1. It’s now easier than ever to produce goods under private labels or custom formulations via third-party manufacturers.

2. Selling these goods no longer requires navigating the complexities of retail networks. Brands can succeed by selling directly through their websites or marketplaces.

This phenomenon, often referred to as the “D2C revolution” (Direct-to-Consumer), bypasses traditional retail entirely.

By 2019, D2C sales accounted for nearly 20% of all online sales in some countries, and this share has likely grown since then. In the U.S. alone, D2C sales in 2024 are projected to exceed $200 billion, with robust growth visible in market trends.

As the D2C market expands, platforms supporting D2C brands in promotion and sales are also growing. Many startups aim to carve out a piece of this burgeoning market:

• Smytten (India): A marketplace offering free samples of new products, with users able to purchase items they enjoy. Smytten has raised $21.9 million in funding, most of it after its 2021 feature.

• Stack Influence (U.S.): Connects brands with micro-influencers who promote products by posting about them online after trying free samples. The startup has raised $1.27 million.

• Brandefy (U.S.): Builds a community of personal care product users to identify cheaper alternatives to expensive items, many of which are D2C brands. It has secured $3.7 million in funding.

• OpenBorder (U.S.): Assists local D2C brands in expanding to international markets, claiming it can boost revenue by 35% with minimal effort from the brands. OpenBorder has raised $10 million.

These examples show that the D2C ecosystem is fertile ground for innovation, with startups addressing various pain points in product discovery, feedback, and market expansion.

Key Takeaways

While the D2C market is booming, manufacturing your own products can be a challenging and resource-intensive endeavor that’s not suitable for everyone.

Instead, creating platforms to support D2C brands — such as helping them distribute samples, collect feedback, or generate user-generated content—offers promising opportunities.

Models like Samplico and Smytten, which enable D2C brands to reach potential buyers through free samples, solve multiple problems for brands in one go: they facilitate product discovery, gather actionable feedback, and generate organic social media promotion.

This multifaceted value makes such platforms highly appealing to brands. The consumer side is equally compelling, as evidenced by Samplico’s 3 million users. For entrepreneurs, replicating or iterating on these models could be a lucrative move, but speed is key — establishing early credibility and partnerships is crucial to success in this competitive space.

Company info

Samplico

Website: https://samplico.com/
Last funding round: $1.8 million, 29.02.2024
Total funds raised: $1.8 million over 1 round