Due to the unpredictable nature of the fashion industry, fashion brands often have to “estimate” the demand for their products and, if they get the wrong demand, they face wasted inventory. Too often, clothes end up unnecessarily incinerated, increasing their environmental impact. UK startup Purple Dot has an e-commerce “waitlist and pre-order” platform, which allows fashion brands to produce only the exact volume of goods ordered, thereby reducing waste.
Purple Dot has now raised an initial $ 4 million funding round led by US-based Unusual Ventures. Previous investors Connect Ventures, Moxxie Ventures and the family office of Indeed co-founder Paul Forster also attended.
Founded in 2019 by entrepreneurs Madeline Parra and John Talbott, Purple Dot says it allows ecommerce businesses to “sell inventory first as a way to maximize sales, build brand loyalty, and access demand data early.” Purple Dot’s waiting list solution allows you to sell inventory before it arrives in stock. The startup claims it is the only solution of its kind available on the market.
Madeline Parra, CEO and co-founder of Purple Dot, said, “By selling first, brands open a whole new window to capture sales. 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 the right advance sales strategy, you need a dedicated approach that gets the customer experience and the right internal tools. “
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 the way brands sell, and we believe pre-orders and waiting lists will shape the future of online shopping. “