[bemmu]

Looks interesting. I was trying to find "the catch" there. 3.49 pounds sounds like it would hardly even cover the shipping cost. Perhaps they have figured out how to keep their costs really really low and somehow also managed to do really really big volume.

[modernerd]

They only ship to the UK, which keeps postage costs down. They also buy produce in bulk, and partner with bakers/producers directly to obtain the best deals.

They had around 15,000 subscribers each paying about £3.50 a week in 2009. I can't find an updated figure for 2011.

You could learn something from their personalisation service, though; I'd be more inclined to try Candy Japan if I could select candy I didn't want to receive in a personal account page. I'd also suggest:

1. Offering a cheaper one-package-a-month option. (e.g. 8 /month)

2. Correcting the typos on your homepage (e.g. 'What is costs' instead of 'What it costs')

3. Showing more samples of what you send, with higher quality photos, and perhaps some shots of the sorts of shops you buy it from. Make people who've seen them miss that experience, and people who haven't curious about it.

Other than that, though, it looks like a great start. Very best of luck with it.