- Investors include Caterina Fake (Founder of Flickr, former Chairman of Etsy), YesVC; Jason Stoffer (investor in Everlane, Zulily), Maveron; Sesame Street Ventures; and Joe Montana, Liquid VC
- Clothes priced at 70-90% less than the competition, new type of shopping experience that takes only 2 minutes
- The company has shipped more than half a million items just a year after launching its online business
April 17, 2019 – SEATTLE, WA – Kids on 45th, which sells seasonal boxes of nearly new kids clothing at prices lower than Walmart, has raised $3.3 Million from YesVC, Maveron, SoGal Ventures, Sesame Street Ventures, Collaborative Fund, Liquid 2 VC, and Brand Foundry Ventures to expand its reach to more parents who love that they can get a kids wardrobe of 17 items for as little as $35.
The Absolute Best Value on Kids Clothes + Time Saved
“Early customers (who are almost entirely moms) have flocked to Kids on 45th because it takes shopping completely off their list,” said Caterina Fake, Partner, YesVC. “For many moms, shopping is a chore, not a delightful recreation. This ‘Value Shopper’ mom currently shops the sales, clearance racks and second-hand stores, which is incredibly time consuming.”
Kids on 45th has changed up the shopping experience – customers select the types and sizes of clothing they need (e.g., 4 pairs of pants, 3 long-sleeve shirts, 2 dresses, 2 short-sleeve shirts, 1 pair of sunglasses), and they leave the treasure hunting to Kids on 45th stylists. The moms who love the product also love the element of surprise. Since you aren’t browsing for each item, you never know what you’re going to get. Customers also don’t return items – if they don’t like it, they either donate or pass it along to another family.
“The rise in value retail offline has been unable to be replicated online until now, due to the difficulties of making the business model work,” said Jason Stoffer, partner at Maveron LLC. “Elise and the Kids on 45th team have been able to sell clothing at radically low price points by challenging some of the shopping behaviors that have been accepted as a given up until this point. They pass more savings onto their customers by pairing a global sourcing supply chain with taking on the burden of selection from moms, thereby reducing handling costs like photos, mannequins and returns.
Unbelievably Low Prices (cheaper than Goodwill & Walmart) for Believable Reasons
The Kids on 45th model does not include photos of items or any other traditional online merchandising that’s tied to the typical online browsing experience. This is the top reason why the prices are able to dip so low (as little as $1.99).
The items are sold at flat prices – so a mom pays $1.99 for a onesie, and that price doesn’t change if you end up with a premium brand (like Hanna Andersson or Mini Boden) or if you get a value brand (like Target’s Cat & Jack). When families get a premium item, they feel like they’ve really hit the jackpot. But all the items, regardless of brand, are quality items that they can be proud of scoring at such a low price. The decision to not to add extra handling of the clothes, ultimately saves customers 70-90% compared to other used kids clothes sold online.
Resale is Good for the Planet
Americans throw out 30 Billion pounds of clothing every year, according to the EPA. Donation centers get far more clothing than they can internally process, so they sell much of their donations by the pound to downstream buyers. The Kids on 45th operation intercepts clothing that’s headed downstream from donation & consignment centers throughout the U.S.
What doesn’t get purchased in the U.S. ends up being eventually sent overseas, recycled, or put in landfills. Kids on 45th has been able to dig in, rescue and repurpose adorable clothes by buying them, sorting them and sending them out to the families that benefit from the great prices.
Roots in the Mom Community
Founder and CEO, Elise Worthy, is a Seattle mom of 2, and she spun the online operation out of a beloved local children’s consignment store founded in the1980s. When Elise bought the local business in 2017, she saw the opportunity to bring the concept nationwide by selling bundles of seasonal clothing. Previously, Elise founded Seattle’s Ada Developers Academy, an intensive year-long software developer training program exclusively for women, and before that she worked at tech companies like LivingSocial and Amazon.
About Kids on 45th
Kids on 45th sells seasonal bundles of nearly new kids clothes. Kids clothes are priced at 70-90% less than retail and are cheaper than Goodwill and Walmart. In a new type of shopping experience that takes only 2 minutes, parents select the type of clothing they need and receive adorable finds that are a surprise to them and their kids. The company has shipped more than half a million items just a year after launching its online business – it was spun out of a beloved Seattle kids consignment store that’s been operating since the 1980s. More at Kidson45th.com