What is SilkRoll and how does it work? SilkRoll is an online platform where women can exchange high-quality clothing using a points system. Users send in their unwanted clothing in exchange for points, which they can then use to purchase other items on the site.
Summary
- SilkRoll is an online platform for exchanging high-quality women’s clothing using a points system.
- Founders Janet Wu and Erin Wold appeared on Shark Tank Season 10 seeking $250,000 for 3% equity.
- The Sharks were confused by the business model and unimpressed with the low revenue, ultimately not making a deal.
- Despite not getting a deal, SilkRoll has continued to operate and grow.
- As of July 2024, the company has achieved lifetime sales of $20 million.
- The company now allows users to buy clothes with cash in addition to the points system.
- Co-founder Erin Wold exited the business sometime after the Shark Tank appearance.
- Janet Wu co-founded the Women’s Investment Club in 2020.
SilkRoll Shark Tank Update | Shark Tank Season 10
What is SilkRoll?
SilkRoll is an online platform that allows women to exchange high-quality clothing. It’s like a virtual consignment shop where you can trade your unwanted clothes for new-to-you pieces.
Instead of using traditional money, SilkRoll uses a points system. This makes it easy to refresh your wardrobe without spending a lot of cash.
The SilkRoll Concept
The idea behind SilkRoll is simple: many women have closets full of clothes they rarely wear. SilkRoll gives these clothes a second life. You send in your quality items that you no longer need.
In return, you receive points based on the value of your clothes. You can then use those points to shop for “new” items from other users on the SilkRoll website.
This system promotes sustainability by reducing textile waste and encourages a more circular economy in fashion.
SilkRoll on Shark Tank
1. The Pitch
| Entrepreneurs | Janet Wu and Erin Wold |
|---|---|
| Business | SilkRoll |
| Ask | $250,000 for 3% equity |
| Deal | No deal |
| Sharks | Mark Cuban, Barbara Corcoran, Kevin O’Leary, Lori Greiner, Robert Herjavec |
| Season – Episode | Season 10, Episode 14 |
| Original Air Date | March 10, 2019 |
| Website | SilkRoll |
| Key Points of Pitch |
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| Why Sharks Declined |
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2. The Sharks’ Reaction
The Sharks were initially intrigued by the concept of SilkRoll, but their interest quickly waned as they learned more about the business model.
They struggled to understand how the company generated revenue, especially given the low transaction fees and reliance on a points system.
The Sharks also expressed concern about the company’s high valuation, which seemed out of line with its limited financial performance.
3. Why No Deal?
Ultimately, the Sharks decided not to invest in SilkRoll for several reasons. The primary factor was the lack of clarity in the pitch.
The entrepreneurs struggled to effectively communicate their business model and financial projections.
The Sharks were also put off by the high valuation, which they felt was not justified by the company’s current revenue and profit margins.
Finally, some Sharks expressed skepticism about the long-term viability of the business model, particularly in a competitive market with established players like The RealReal and ThredUp.
SilkRoll After Shark Tank
1. Company Updates
Despite the disappointing outcome on Shark Tank, SilkRoll has continued to operate and evolve. One significant change is that co-founder Erin Wold left the business sometime after their appearance on the show. Janet Wu remains at the helm, steering the company forward.
SilkRoll has also expanded its platform to allow users to purchase clothes with cash, in addition to the points system. This likely broadened their customer base and made the platform more accessible.
In 2020, Janet Wu co-founded the Women’s Investment Club, a network aimed at empowering young women to achieve their financial goals. This demonstrates her continued commitment to entrepreneurship and female empowerment.
2. Financial Performance
While exact figures are not publicly available, SilkRoll has reported achieving lifetime sales of $20 million as of July 2024.
This suggests that the company has experienced significant growth since its Shark Tank appearance, despite not securing a deal with the investors.
It seems that the exposure from the show, coupled with ongoing refinements to their business model, has contributed to their success.
3. The Future of SilkRoll
SilkRoll appears to be well-positioned for continued growth in the future. The secondhand clothing market is expanding rapidly, driven by increasing consumer awareness of sustainability and affordability.
SilkRoll’s focus on high-quality items and its unique points system differentiates it from competitors.
By continuing to adapt to the changing needs of its users and staying abreast of trends in the online resale market, SilkRoll can solidify its position as a leader in the sustainable fashion movement.
It will be interesting to see how the company continues to innovate and expand its offerings in the years to come.
How SilkRoll Works
SilkRoll offers a unique way to refresh your wardrobe while being kind to your wallet and the planet. Here’s a step-by-step guide on how it works:
1. Earning Points
- Request a Clean Out Kit: Start by ordering a Clean Out Kit from the SilkRoll website. This kit includes a prepaid shipping label and a bag for your clothes.
- Fill the Bag: Fill the bag with gently used, high-quality women’s clothing that you no longer wear. SilkRoll accepts a wide range of brands and styles.
- Ship it Off: Seal the bag, attach the prepaid label, and drop it off at your nearest shipping location.
- Earn Points: Once SilkRoll receives and processes your items, you’ll earn points based on their value. These points are added to your account and can be used to shop on the site.
2. Shopping with Points
- Browse the Selection: Explore the wide variety of clothing available on SilkRoll. You can filter by size, brand, style, and more.
- Add to Cart: When you find something you like, simply add it to your cart.
- Checkout with Points: At checkout, you can use your earned points to pay for your items. You can also choose to pay with a combination of points and cash.
- Enjoy Your New Clothes: SilkRoll ships your order directly to you, so you can enjoy your new-to-you wardrobe additions.
3. Membership Options
SilkRoll offers different membership options to suit your needs:
- Pay As You Go: This option is ideal if you only plan to use SilkRoll occasionally. You’ll pay a small service fee on each transaction.
- Membership: If you’re a frequent shopper, a membership might be a better value. Members enjoy benefits like lower service fees, exclusive access to sales and promotions, and priority processing of their Clean Out Kits.
No matter which option you choose, SilkRoll provides a convenient and sustainable way to update your wardrobe without breaking the bank.
The Benefits of SilkRoll
SilkRoll offers several advantages that make it a compelling choice for fashion-conscious consumers:
1. Sustainability
SilkRoll promotes sustainability by giving your clothes a second life. Instead of ending up in a landfill, your unwanted items can be enjoyed by someone else.
This reduces textile waste and helps lessen the environmental impact of the fashion industry.
2. Affordability
SilkRoll makes it more affordable to update your wardrobe with high-quality pieces. By trading your clothes for points, you can get “new” items without spending a lot of money.
This allows you to experiment with different styles and brands without breaking the bank.
3. Community
SilkRoll fosters a sense of community among its users. It connects women who share a passion for fashion and sustainability.
You can interact with other members, discover new styles, and be part of a movement towards a more conscious way of consuming clothing.
SilkRoll’s Competitors
While SilkRoll offers a unique approach to clothing exchange, it operates in a competitive market. Here are a few of its main competitors:
1. The RealReal
The RealReal is a luxury consignment shop that sells authenticated designer clothing and accessories. It offers a wide selection of high-end brands and provides a white-glove service for sellers.
2. ThredUp
ThredUp is a large online consignment and thrift store. It carries a wide range of brands and styles, from everyday wear to designer labels. ThredUp offers a convenient way to buy and sell secondhand clothing.
3. Poshmark
Poshmark is a social commerce platform where users can buy and sell new or used clothing and accessories. It has a large and active community of buyers and sellers, making it easy to find unique and trendy items.
FAQs
Is SilkRoll only for women?
Yes, currently SilkRoll focuses exclusively on women’s clothing.
What brands does SilkRoll accept?
SilkRoll accepts a wide range of brands, from popular high-street names to designer labels. They prioritize quality and condition over specific brands.
What happens if my items are not accepted?
If any of your items don’t meet SilkRoll’s quality standards, they will be returned to you. You can also choose to have them donated to charity.
How are the points calculated?
Points are assigned based on the original retail price, brand, and condition of your items. SilkRoll has a clear system for evaluating each piece.
Can I use SilkRoll without a membership?
Yes, you can use SilkRoll without a membership. However, members enjoy benefits like lower service fees and exclusive access to sales.
The Bottom Line
SilkRoll offers a compelling solution for fashion lovers who want to refresh their wardrobe sustainably and affordably. By facilitating the exchange of high-quality clothing, SilkRoll helps reduce waste and promotes a more circular economy in fashion.
While it faces competition from other online consignment platforms, SilkRoll differentiates itself with its unique points system and focus on community. If you’re looking for a way to update your closet while minimizing your environmental impact, SilkRoll is definitely worth exploring.
