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Ipsy

IPSY (stylized in all caps) is an American beauty subscription service founded in 2011 that delivers personalized monthly boxes of makeup, skincare, and beauty samples to subscribers, enabling self-discovery and expression through curated products tailored to individual preferences via online quizzes. Co-founded by beauty influencer , along with entrepreneurs Marcelo Camberos and Jennifer Goldfarb, the company originated as myGlam before rebranding to IPSY and expanding into a comprehensive platform uniting brands, creators, and consumers. Headquartered in , IPSY operates under Personalized Beauty Discovery, Inc., with current leadership including CEO Galen Smith and Chairman Marcelo Camberos, and it serves a global community of over 20 million members through subscription offerings like the Glam Bag. The platform leverages , over 200 million product reviews, and content from stylists to drive personalization and innovation, positioning IPSY as a leader in the beauty industry with reported revenues exceeding $1 billion following its 2021 acquisition of BoxyCharm.

History

Founding and early years

Ipsy was founded in 2011 in , by beauty influencer , along with Marcelo Camberos as CEO and Jennifer Goldfarb as president. The company originated from Phan's burgeoning career on , where she had amassed over 2 million subscribers by 2011 through viral makeup tutorials that emphasized accessible beauty techniques. Inspired by her experiences shopping for cosmetics in and her goal to make high-quality beauty products available to a wider audience regardless of budget, Phan sought to create a service that would provide personalized sampling to empower self-expression. Initially launched as MyGlam, the platform offered a monthly known as the Glam Bag, containing four to five deluxe or full-size beauty samples tailored to subscribers' preferences via an online style quiz. The service debuted in late with a phase that quickly attracted early adopters, leading to over 500,000 subscribers by the end of 2012 through word-of-mouth promotion tied to Phan's . This rapid expansion was fueled by the novelty of the personalization model, which used quiz responses to match products from various beauty brands, and the low $10 monthly fee that made discovery affordable. Ipsy achieved profitability within its first year, a testament to the strong initial demand. In its , Ipsy faced operational hurdles, particularly in managing supply chains amid surging popularity, which resulted in frequent sell-outs of monthly bags and strained relationships with partners reluctant to provide samples at . without sophisticated also proved challenging; the reliance on basic required manual curation and iterative refinements to ensure product relevance, highlighting the limitations of early tools in handling diverse consumer preferences. These issues underscored the complexities of transitioning from an influencer-driven concept to a viable subscription business in the nascent beauty sampling market.

Growth, funding, and expansions

In September 2015, Ipsy secured a $100 million Series B funding round led by TPG Growth and Sherpa Capital, which valued the company at approximately $800 million and enabled significant scaling of its operations and marketing efforts. This investment built on the foundational influence of co-founder , whose audience had driven early adoption, allowing Ipsy to expand its subscriber base and product sampling partnerships. By March 2015, Ipsy had reached 1 million paid subscribers, a milestone fueled by aggressive campaigns leveraging Phan's network and collaborations with beauty brands such as and , which provided high-profile products for inclusion in Glam Bags. This growth positioned Ipsy as a leader in the beauty subscription market, with annual revenue approaching $120 million at the time. To cater to premium users and boost retention, Ipsy introduced the Glam Bag Plus tier in August 2018, a $25 monthly subscription delivering five full-size products rather than samples, marking a strategic extension of its core offerings. Supporting this subscriber expansion, Ipsy undertook operational enhancements in 2018, including the establishment of additional warehouse facilities in to handle increased fulfillment demands and the initiation of international shipping pilots to and select markets, broadening its reach beyond the U.S.

Key acquisitions

In October 2020, Ipsy acquired BoxyCharm, its primary competitor in the subscription market, for $500 million in a stock deal that formed a new parent company, Beauty for All Industries (BFA). This move integrated BoxyCharm's emphasis on full-size products with Ipsy's personalization-driven model, resulting in a combined subscriber base exceeding 4.3 million and projected annual revenue surpassing $1 billion. BoxyCharm, known for its curated selections of high-value items, brought approximately 1.8 million subscribers to the fold, complementing Ipsy's existing community of over 2.5 million users focused on sample-based discovery. Following the acquisition, Ipsy and BoxyCharm initially operated as separate brands under BFA to maintain distinct customer experiences, with efforts beginning in late to align operations, including shared across supply chains and platforms. Full occurred in February 2023, when the brands consolidated under the Ipsy umbrella, unifying offerings into a single membership program that blended Ipsy's recommendations with BoxyCharm's product assortment to enhance and choice. This process involved harmonizing backend systems but faced hurdles in preserving amid operational overlaps, as noted in industry analyses of post-merger adjustments in the subscription sector. In January 2023, co-founder Marcelo Camberos stepped down as CEO. The acquisition significantly reshaped the competitive landscape of beauty subscription services by merging the two largest players, which together captured over 75% of the and reduced fragmentation among rivals like Birchbox and Allure Beauty Box. It enabled cross-promotional opportunities, such as expanded product access and joint marketing campaigns, strengthening BFA's position against broader e-commerce threats from platforms like and Ulta. No other major acquisitions followed in the immediate years, with BFA instead focusing on internal growth through a $96 million in 2022 to bolster technology and product innovation.

Business Model

Subscription services

Ipsy offers three tiered subscription plans designed to cater to varying levels of enthusiasts' needs, each providing personalized selections of makeup, skincare, and haircare products. The entry-level IPSY Original, priced at $14 per month plus shipping, delivers five deluxe-size samples valued at up to $70, along with a collectible makeup bag. For those seeking full-size items, IPSY Extra costs $32 per month plus shipping and includes five full-size products worth up to $200, with subscribers able to choose three of them from curated options. The premium IPSY Ultimate, available quarterly for $65 plus shipping, features eight full-size luxury products valued at up to $400, emphasizing high-end collaborations and limited-edition items. The subscription process begins with users completing an initial Beauty Quiz upon signup, which assesses factors such as type, concerns, makeup preferences, and goals to build a personalized profile using over 500 data points. This quiz informs product selections across all tiers, with the option to preferences anytime for ongoing . Each month, subscribers engage further through the feature in the IPSY app or website, where IPSY Original members select one product from a lineup of 10 tailored options, while IPSY Extra members choose three; the remaining items are stylist-picked based on profile data. This interactive element, powered by AI-driven recommendations, ensures bags align closely with individual tastes. Fulfillment operations handle millions of monthly shipments from U.S.-based warehouses, typically dispatching mid-month to arrive within 7-10 business days. With over 4 million subscribers as of recent reports, Ipsy achieves a high rate by leveraging user quiz responses, past reviews, and choice selections to customize bags, minimizing generic distributions. Logistics partner Saddle Creek manages these high-volume, data-driven orders, supporting peak periods like holidays with 99.9% accuracy. To address industry churn rates often exceeding 20-30%, Ipsy employs retention strategies such as customizable add-ons—bonus products available for purchase from the 1st to 3rd of each month, shipping free with subscriptions—and flexible pause options that allow members to a month without canceling, preserving points and access to sales. These features, accessible via the account dashboard before the 25th of the month, encourage continued engagement by offering control over spending and product variety.

Revenue diversification

Ipsy has expanded its revenue streams beyond core subscription fees by developing an platform known as IPSY Shop, launched in September 2017, which enables subscribers to purchase full-sized versions of sample products from their bags at discounted prices ranging from 30% to 80% off retail. This sales channel operates on wholesale profit margins, allowing Ipsy to capitalize on user interest generated by subscriptions and drive additional purchases of both partner and in-house brands. By integrating seamless access to these items via the and , the platform has become a key component of Ipsy's growth strategy, complementing its sampling model with full-price retail opportunities. Brand partnerships form another pillar of Ipsy's diversified income, particularly through sponsored product inclusions in subscription bags, where beauty companies pay fees for targeted placements to reach Ipsy's millions of active users. For instance, major brands like L'Oréal compensate Ipsy for featuring their products in curated bags, gaining visibility and feedback from a demographically diverse audience while Ipsy earns from these promotional arrangements. Additionally, Ipsy secures affiliate commissions by partnering with influencers and publishers who drive new subscriptions and sales through unique referral links, with programs offering payouts such as $8 per new subscriber. Co-branded launches further enhance this stream, as seen in collaborations with celebrities like Ciara and Halsey for exclusive product lines released in 2021, which boost joint marketing efforts and shared revenue from limited-edition sales. Ipsy also monetizes its vast repository of anonymized user data through and insights services, providing beauty brands with aggregated preference derived from over 200 million product reviews and purchase patterns. This includes selling trend reports and customized marketing recommendations, such as those highlighted in Ipsy's annual Beauty Discovery Reports, which help brands refine product development and campaigns. These data-driven offerings represent a high-margin source, enabling Ipsy to position itself as a valuable partner in the beauty industry's ecosystem. To broaden its global footprint, Ipsy has pursued international revenue streams by expanding shipping and localized subscriptions to and , in addition to the . This move, building on its U.S.-centric base, incorporates region-specific product curation to adapt to local preferences, thereby adding incremental income from cross-border subscribers while mitigating reliance on domestic growth.

Products and Services

Core subscription offerings

Ipsy's core subscription offerings revolve around personalized monthly beauty bags that deliver a mix of makeup, skincare, and haircare products in various formats. The primary offering, IPSY Original (formerly Glam Bag), provides five deluxe sample-sized items, such as , serums, and , curated from partner brands to introduce subscribers to new favorites. These bags offer up to $70 in retail value for $14 per month plus $1.99 shipping in the U.S., making them an accessible entry point for beauty discovery. In 2020, Ipsy acquired BoxyCharm for $500 million, integrating its model of full-size products into the IPSY Extra subscription to expand options for value-focused subscribers. This tier delivers five full-size items, including eyeshadow palettes and tools from partner brands, with a retail value of up to $200 for $32 monthly plus shipping. The curation prioritizes high-impact, everyday essentials that cater to a broad range of routines. Ipsy also offers IPSY Ultimate, a quarterly subscription that provides eight full-size beauty products worth up to $400 for $65 per quarter plus shipping. Subscribers choose three items, with the remaining five curated to complement selections, featuring premium and celebrity-endorsed products. Seasonal themes add variety to these core bags, with holiday editions featuring limited-edition items and festive packaging to align with celebratory periods. For instance, the 2024 Holiday Magic Mystery Bag includes five deluxe samples in a rose gold pouch designed for gifting and seasonal glow. Such releases, often tied to themes like winter radiance or summer vibrancy, encourage experimentation with timely product formats like hydrating masks or shimmering accents. Customization enhances the personalization of these offerings, allowing subscribers to select items from monthly lineups based on their quiz responses and preferences, such as clean beauty or specific formulations. In IPSY Original, users choose one product from curated options, while IPSY Extra permits selection of three to refine the bag's contents further. This process ensures bags reflect individual styles, with the remaining items handpicked to complement selections.

In-house and partner brands

Ipsy launched its first in-house beauty brand, Complex Culture, in November 2019, focusing on vegan and makeup brushes and tools designed for everyday use by busy consumers. The initial collection included eight brushes with descriptive names to simplify selection, such as "All Eyes on That" for an all-over shadow brush, priced between $18 and $35, along with complementary items like a cosmetics bag and case. This marked Ipsy's entry into proprietary product development, aiming to address gaps in accessible, professional-grade tools within the market. Building on this foundation, Ipsy established Madeby Collective, its brand incubator, to create and collaborate on additional lines exclusive to its platforms. In 2020, the incubator launched Item Beauty, a clean beauty developed in partnership with influencer , featuring affordable, multifunctional products like lip oils and blushes targeted at Gen Z consumers; the brand was discontinued in 2023. The following year, in June 2021, Madeby Collective partnered with singer to introduce Treslúce Beauty, a haircare and makeup line inspired by Latinx heritage, including items such as conditioning masks and eyeliners formulated for diverse hair textures and skin tones. In 2021, Ipsy debuted Refreshments, a private-label skincare emphasizing vegan, sustainable like cleansing balms and moisturizers, all free of parabens, sulfates, and , with recyclable packaging and prices starting around $6. These brands are distributed solely through Ipsy's subscription services and shop, enhancing product exclusivity for subscribers. Ipsy's approach to in-house and partner brands via Madeby emphasizes co-development with influencers to fill specific needs, such as inclusive formulations and budget-friendly innovations, while integrating these products into subscription bags to drive discovery and loyalty. This strategy supports revenue diversification beyond third-party samples, with owned lines like Complex Culture providing tools for application and the others expanding into haircare and skincare categories previously underrepresented in Ipsy's offerings.

Technology and Personalization

AI-driven recommendations

Ipsy's personalization system originated with a Beauty Quiz introduced in 2011, which gathered over 150 data points on user preferences such as skin tone, eye and color, styles, and preferred brands to tailor initial product selections. This quiz-based approach evolved with the introduction of in 2016 through the proprietary IPSY Match algorithm, which enhanced beyond traditional rules-based methods by analyzing user feedback and purchase history. The system now processes over 500 data points per user monthly, incorporating elements like past product ratings and engagement metrics to generate more precise recommendations. At its core, the IPSY Match algorithm leverages to evaluate over 200 million product reviews alongside responses and ongoing interactions, enabling it to detect sentiment and evolving preferences for better matching. The initial assesses key aspects including type, product categories like makeup and skincare, and brand affinities, serving as the foundational input for the model's predictive capabilities. Users can their responses at any time, with changes applied to future bags if submitted before the monthly cutoff on the 29th, ensuring the algorithm adapts to shifting needs. User feedback loops play a central role in refining the system, as post-delivery product reviews—totaling over 200 million—feed back into the models to avoid repeats, balance brand exposure, and prioritize high-satisfaction items. This iterative process allows longer-term subscribers to receive increasingly tailored selections, with learning from collective data across millions of users to incorporate broader trends and individual behaviors. Following the 2020 acquisition of BoxyCharm for $500 million, Ipsy integrated the combined subscriber base of over 4.3 million, enhancing its data pool to further train the IPSY Match algorithm on diverse preferences, including those for full-size products offered through BoxyCharm's service. This merger expanded the system's capacity to personalize across subscription tiers, using aggregated insights from both platforms to improve overall recommendation relevance without altering the core mechanics. Recent developments include the adoption of generative for internal productivity, such as and , as well as advanced consumer as of 2023.

User engagement features

Ipsy's mobile app enables interactive features such as product reviews, allowing users to experiment with beauty looks before purchase. These tools foster direct with beauty products, complementing the subscription for the platform's over 20 million members as of 2025. The app and website include elements like forums and influencer content hubs across platforms, where users share , tips, and tutorials related to monthly bag items. This setup promotes interaction and inspiration from creators, enhancing the overall user connection to the brand. A key engagement driver is the , which operates on a points system where members earn 15 points for each product review submitted via the app or site. These points can be redeemed for add-ons, including deluxe samples or full-size items shipped free with the next subscription delivery, encouraging repeated participation and contributing to a reported rate exceeding 85%. Mobile optimizations, such as push notifications for upcoming bag reveals and new content drops, keep users informed and excited about their personalized deliveries, integrating seamlessly with the app's interface to boost interaction.

Impact and Developments

Industry influence and reports

IPSY has emerged as a key influencer in the beauty industry through its data-driven insights, particularly via the inaugural 2025 Beauty Discovery Report, which analyzes over 200 million product reviews, member feedback, and purchasing patterns from a community of more than 20 million beauty enthusiasts. This comprehensive report, released in May 2025, forecasts major shifts in consumer behavior, including the "MUA Movement," a predicted in preference for brands founded by professional makeup artists over celebrity-endorsed lines, driven by greater trust in expert credibility among Gen Z and . The report's predictions have been widely cited in industry media, shaping discussions on authenticity and professional expertise in product development and marketing strategies. The 2025 report highlights IPSY's influence on Gen Z consumers, revealing their pivot toward sustainable and inclusive beauty products, with an emphasis on expanded shade ranges to better serve diverse communities and a growing prioritization of eco-friendly formulations in lip and skincare categories. For instance, Gen Z's shift from fragrances to lip glosses—now their third-highest priority—reflects a demand for versatile, low-commitment items that align with values of inclusivity and , prompting brands to reformulate products with broader accessibility in mind. These insights have influenced industry formulations, as evidenced by a 50% year-over-year increase in interest for berry-toned lip products in early 2025, signaling how subscriber data guides broader market adaptations. IPSY's collaborations with data analytics firms, such as integrations with broader reports, have amplified its role in providing actionable market intelligence; the company's internal data has been referenced alongside external analyses to highlight trends like the integration of in beauty retail personalization. Media outlets have cited IPSY's findings to underscore evolving retail dynamics, including how -driven discovery tools are accelerating shifts toward customized, tech-enabled shopping experiences in the sector. Subscriber-driven trends further demonstrate IPSY's impact, as seen in the rise of clean beauty preferences exemplified by the "Clean Girl" aesthetic, named the top beauty trend of 2024 based on member engagement and product selections. This trend, emphasizing natural enhancement through fresh, polished finishes with clean ingredients, has influenced supplier negotiations by increasing demand for transparent, non-toxic formulations, with 89% of 2024 subscriptions incorporating serums and moisturizers—key clean beauty staples—that saw a 9% year-over-year growth. Such patterns from IPSY's platform have compelled brands to prioritize clean standards in negotiations, fostering a market-wide push toward without exhaustive numerical benchmarks.

Recent innovations and challenges

In 2024, Ipsy advanced its AI infrastructure by incorporating generative AI tools to boost internal efficiency, particularly in developer workflows and , while enhancing to evaluate thousands of customer interactions in seconds. This built upon the company's longstanding Ipsy Match system, which leverages for personalized product recommendations based on user quizzes and feedback. These updates have enabled faster curation of beauty content, including tutorials, and provided brand partners with insights from over 200 million product reviews to inform launches. Ipsy has sustained its commitment to environmental responsibility through ongoing packaging reforms, incorporating post-consumer recycled () plastics and alternative materials like paper and to minimize virgin plastic content. The company aimed to reduce virgin plastic to 50% by weight across owned brands by , having achieved 51% in and , and extended clean beauty standards—banning over 1,800 ingredients—to more than 95% of its portfolio. These initiatives support broader climate actions, such as prioritizing ground shipping to cut emissions by up to 80% compared to air transport. The 2023 consolidation of Ipsy and BoxyCharm into a single membership platform addressed post-pandemic market volatility, including shifts in and constraints that complicated product sourcing and delivery. This merger, announced in February 2023, combined Ipsy's personalization with BoxyCharm's brand curation to streamline operations amid customer acquisition hurdles, though it required integrating distinct fulfillment and merchandising functions for greater efficiency. Looking ahead, Ipsy's 2025 Beauty Discovery Report highlights emerging trends like the rise of makeup artist-led brands among Gen Z and , a surge in "skinified" haircare, and maximalist makeup preferences in urban markets, informing future product selections. The company plans to expand its partnership to U.S. stores and online platforms in early , broadening access to its subscriptions and owned brands.

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