The Seattle-based online fashion retailer Zulily has announced it is going out of business. This news marks the end of a journey for a company that, at one point, was valued at $7 billion and stood as a formidable challenger to e-commerce giants like Amazon.
As Zulily's website now starkly announces a "going-out-of-business sale" with all sales being final, customers and vendors alike are coming to terms with the reality of the company's closure. Vendors, some of whom have been with Zulily for years, are left seeking payments owed, while former employees reflect on the impact of a company that once symbolized innovation and growth in the e-commerce space.
Founded in 2010 by Mark Vadon and Darrell Cavens, Zulily began with a focus on children’s apparel, quickly gaining traction through its innovative use of flash sales. These limited-time offers created a sense of urgency and exclusivity that propelled the company to a successful IPO in 2013, with revenues hitting $1 billion just a year later.
However, sustaining this early momentum proved challenging. In 2015, Zulily was acquired by Liberty Interactive's QVC division for $2.4 billion, a figure significantly lower than its peak market value. Over time, the company faced increasing competition, particularly from Amazon, which reportedly pressured merchants to raise prices on Zulily's platform, leading to a decline in revenue and market relevance.
The final chapter for Zulily began unfolding when Qurate Retail sold the company to Regent L.P. in May 2023. Subsequent layoffs and the resignation of CEO Terry Boyle hinted at internal struggles. By December 2023, Zulily had laid off over 800 employees across Seattle, Nevada, and Ohio, signaling a dire situation.
The reasons behind Zulily's downfall are manifold. The company could not keep up with the fierce competition and changing market dynamics. Amazon's alleged tactics to undermine Zulily's pricing strategy further exacerbated the situation, contributing to a steady decline in sales and customer base.
