Due to the unpredictable nature of the fashion industry, fashion brands often have to ‘estimate’ the demand for their products, and if they get that demand wrong, they have to deal with wasted inventory. Clothes are all too often incinerated unnecessarily, which increases the impact on the environment. British startup Purple Dot has an e-commerce “waiting list and pre-order” platform, allowing fashion brands to produce only the exact volume of goods ordered, reducing waste.
Purple Dot has now raised a $4 million early funding round led by US-based Unusual Ventures. Past investors Connect Ventures, Moxxie Ventures and Indeed’s family office co-founder Paul Forster also participated.
Founded in 2019 by entrepreneurs Madeline Parra and John Talbott, Purple Dot says it offers e-commerce companies the ability to “sell inventory earlier as a way to maximize sales, build brand loyalty, and access demand data earlier. ” Purple Dot’s waitlist solution allows inventory to be sold before it arrives at the warehouse. The startup claims that it is the only solution of its kind available in the market.
Madeline Parra, CEO and co-founder of Purple Dot, said: “By selling earlier, brands open a whole new window to capture sales. The legacy mindset and technology assume you need inventory in the warehouse. to sell it. But with Purple Dot you can always sell because selling and shipping can be asynchronous. This is the “A-ha” moment for our brand partners. To get a previous selling strategy right, you need a dedicated We need an approach that improves the customer experience and internal tooling.”
Rachel Star, investor at Unusual Ventures, said: “Purple Dot is more than an e-commerce enabler; they are revolutionizing the way supply chains are managed and how brands sell, and we believe that pre-orders and waiting lists will determine the future of online shopping.”