Taking the expensive first step into the physical channel was a daunting but worthwhile investment in the long run, says Ariel Kaye, Parachute Home's founder and chief executive, speaking to Inc.

The e-tailer tested its first pop-up shop for six weeks in 2015, on Abbot Kinney Boulevard, in Los Angeles, and decided the potential revenue gains were worth the financial risk. "I had seen the way people were responding to our products in person, which was so positive," Kaye said. "It was eye-opening.”

Kaye rallied her investors and signed a five-year lease on a 450-square-foot store in Venice, Calif., with a $100,000 build-out budget. While creating that first store, Parachute documented every step and started writing a company guidebook for uniformity across multiple physical units. A lean staff, a small footprint and a cash-register-free shopping experience were keys to the brand, Kaye says.

In 2017 Parachute opened a second store, in Portland, Ore., and this year it opened a third, in New York City's SoHo neighborhood.

The retailer is now profitable, and Kaye says the company is looking to open more stores across the country.