E-Commerce Site Tries Multi-Channel Close-outs
Deanna Hodges made a career of building clothing companies. She recently launched an e-commerce site designed for closeouts, or the clothes that don’t make it to the shop floor.
Hodges, an entrepreneur from Huntington Beach, Calif., thought the typical closeout, traditionally the realm of the off-price retailer, involved too many compromises for manufacturers. She contended that jobbers traditionally paid too little for clothes. Manufacturers also rarely find out where their product goes.
Her new site is Yonduur (www.yonduur.com). The name is a riff on the phrase ‘over yonder,’ most often heard in the rural South. It offers three separate ways to dispose of goods. There’s a charity channel, where Yonduur staff will help the manufacturer donate to a charity. There’s a B2B channel, in which Hodges says that retailers from across the globe will participate. The website will help the manufacturer send a closeout to a store in Central America, for example, and the manufacturer can later develop a relationship with that retailer.
There’s also a business-to-consumer channel. Yonduur sells goods starting at 75 percent off. The company requests 15 percent of sales and $39.95 monthly membership fees from companies that sell on it. Yonduur ensures quality, Hodges says, because the site confirms those providing goods are active apparel manufacturers. Yonduur stores and ships clients’ close-out inventory from a warehouse in Cerritos, Calif., about 21 miles southeast of downtown Los Angeles.
While she got the idea to produce a multi-channel e-commerce closeout site a few years ago, she believes that 2017 was the right time to introduce the site. “The entire industry is changing now,” Hodges said. “It will turn into something completely different. All of these brands need a way to move their cuts. With this, you can cut out the jobber.”
Hodges privately funded Yonduur. In May, she opened it up to investors, which have included venture capitalists and crowdsourced funding. Yonduur’s investment page is www.startengine.com/startup/yonduur.