Traditional brick-and-mortar retail models typically dictate that inventory must be available in the warehouse before it can be sold. But with an array of supply chain problems holding back economic growth, particularly in the U.K., those models no longer serve eCommerce brands and retailers looking to better manage inventory, reduce waste and increase revenue.
That is the reason why London-based eCommerce firm Purple Dot is helping retailers move away from old-age business models through its innovative end-to-end waitlist platform. And the company, which claims to be the world’s first waitlisting platform, has raised €3.5 million (about $4 million) to further its mission, according to a Dec. 27 report by EU Startups.
The funding round, which adds to the €1.5 million the company secured last year, was led by U.S. venture capital investment firm Unusual Ventures with participation from previous investors including Connect Ventures, Moxxie Ventures, and the family office of Indeed co-founder Paul Forster.
The sustainability-focused platform, launched in 2015, helps retailers to reduce waste by selling inventory before they arrive in the warehouse, managing pre-orders and restock waitlists from the time of purchase to fulfilment — a process the company said can improve sell-through rates by up to 40%, per the report.
Read more: Sustainability: Retail’s Latest Feature
Moreover, with the demand data available to eCommerce businesses beforehand, they can adjust purchase orders based on sought-after products, thereby eliminating overproduction and reducing waste.
According to the report, the end-to-end waitlist retailer has sold tens of thousands of items worth millions of dollars since the start of 2021, partnering with leading brands including U.S. womenswear brand Lisa Says Gah and menswear direct-to-consumer (D2C) brand SPOKE London.
Commenting on the raise, Madeline Parra, the firm’s CEO and co-founder, said that their sell-earlier strategy allows brands to maximize sales by accessing demand data sooner, while moving away from the “legacy mindset and technology” which requires retailers to sell inventory only when it becomes available in the warehouse.
With Purple Dot, brands “can always be selling because selling and shipping can be asynchronous,” Parra said, adding that “we’re excited to be pioneering waitlist shopping as the solution to selling earlier and providing eCommerce brands with a platform to re-imagine when, how, and what they sell.”
Another U.K.-based startup ushering in a new era of sustainability for online shopping is nature-friendly beauty company Upcircle.
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Founded in 2015, the London-based firm offers skincare products like cleansers, exfoliants and face serums made from reused, repurposed and organic natural ingredients such as used coffee grounds and brewed chai tea spices, all delivered in 100% recyclable packaging material.
In a recent LinkedIn post, the company said November was a particularly good month for business, as its average basket spend increased by 25% while the company received its largest U.K. website order to date.
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