Kidizen is a peer-to-peer marketplace for pre-loved kid stuff. And Kidizen helps parents keep up with their kids’ constantly changing needs – from the next size to the next style to the next season – by providing a platform through which they can shop and sell a curated selection – all within a trustworthy, environmentally friendly parent community. Pulse 2.0 interviewed Kidizen co-founder Dori Graff to learn more.
Dori Graff’s Background
Graff’s and her co-founder Mary Fallon both come from an advertising/branding background.
“Mary was on the creative side, and I was on the account services and finance side. The clients we worked with were typically large retailers, and our focus was on researching and understanding the consumer behaviors of moms. And then we both became moms at the same time (our boys are two months apart)!” said Graff.
Formation Of Kidizen
How did the idea for Kidizen come together? “As new parents, Mary and I experienced the pain point that we were solving for when we built Kidizen. We were amazed by how much stuff took over our homes when we first had our kids! Most of these items we only needed for a short period of time, especially clothing, since the boys were growing so quickly,” Graff shared. “Buying everything new seemed excessive, especially since we knew so much of the stuff we needed was in the homes of other families who no longer used it. We, therefore, built Kidizen as a way to leverage technology to create a hand-me-down network of parents all across the country. We received early investment from the Sofia Fund who helped not only with capital but coaching and support. Kidizen then attracted venture capital from Origin Ventures and Royal Street Ventures. Now, Kidizen is parent-powered, inventory-free with 250,000 pre-loved items listed each month from the warehouses in thousands of homes across the US.”
Favorite Memory
What has been Graff’s favorite memory working for Kidizen? “The best experiences by far have been when we’ve had the opportunity to meet those who use Kidizen. We’ve had a number of in-person events and have also brought users into the office for focus groups and feedback. It’s always so wonderful to hear about their experiences on Kidizen and how, for many, it’s become a way for them to connect with other parents, earn some additional income, and demonstrate their values around sustainability,” Graff reflected.
Challenges Faced
What challenges did Graff face in building the company, and has the current macroeconomic climate affected the company? “I am extremely proud that we’ve built the largest resale marketplace for parents to sell used kids’ fashion, especially having only raised a small amount of capital. Most of our growth has come from referrals and word of mouth. We are fortunate to have a very passionate community of parents who help us spread the word. We haven’t spent a significant amount on advertising and yet we’ve built a community of almost a million users who are highly engaged.” Graff acknowledged. “As for the more recent macroeconomic climate, we are benefiting from the overall growth in resale, which grew five times faster than the broader retail clothing sector in 2022. According to a report by Mercari, kidswear is the fastest-growing segment of resale. As the only online resale marketplace for kids’ fashion, Kidizen is well positioned to take advantage of these tailwinds.”
Core Products
What are Kidizen’s core products and features? “Approximately 85% of our sales are kids’ apparel and footwear. You can also find a range of baby and kid-related products on Kidizen, including toys, books, nursery decor, baby essentials, and maternity and women’s clothing,” Graff explained.
Evolution Of Kidizen’s Technology
How has Kidizen’s technology evolved since launching? “Our team is constantly adding features based on feedback from our community that improve the overall buying and selling process. We even developed our own digital currency. We have also found that the features that enable users to connect with each other are very important to our users, and so we have developed robust social functionality that is key to the Kidizen experience,” Graff pointed out. “Another area that is unique to Kidizen is our Style Scout program which provides a way for our top sellers to expand their businesses; the Scouts take in inventory from others and sell it on the sellers’ behalf. Those who are accepted into the Scout program are provided with enhanced features that take care of the commission split and accounting needed to manage sales for multiple clients.”
Significant Milestones
What have been some of Kidizen’s most significant milestones? “Over the years, we have been astonished by the immense amount of brand discovery and affinity within the Kidizen community. To bring high-quality, well-loved brands into the fold, we launched the Rewear Collective in 2019. Through this program, Kidizen partners with dozens of sustainably focused, quality brands to provide their customers with a way to extend the lives of their purchased products. We’ve further expanded our partnership with several brands to host events that help them clear out excess inventory and provide great deals for the Kidizen community,” Graff highlighted. “In 2022, we took the Rewear program to the next level. We used our technology and inventory to provide our brand partner, Tea Collection, with their own white labeled resale platform. According to ThredUp’s Recommerce100 report, theTea Rewear platform, powered by Kidizen, is the second largest branded resale program, with over 23,000 items available.”
Customer Success Stories
When I asked Graff about a customer success story, she replied:
“Some of our biggest success stories come from the journeys our top sellers have taken to become Style Scouts. Our Style Scouts are power-sellers on Kidizen who provide a white-glove consignment service for busy families in their neighborhoods. They also sell overstock inventory from our brand partners. Most of our Scouts started on Kidizen with the goal of selling a few items that their kids had outgrown. As they got better, sold more, and increasingly became hooked on the satisfaction they got from the selling process, they looked for ways to increase their inventory and expand their businesses. Some of our top Scouts have sold well into the six figures through their shops on Kidizen.”
Total Addressable Market
What total addressable market (TAM) size is Kidizen pursuing? Graff assessed:
“According to the U.S. Census Bureau, the number of families with children under 12 is 41 million. ThredUp’s 2022 Resale Report states that 52% of consumers shop secondhand (with Millenials and Gen Z leading the charge). We estimate Kidizen’s total addressable market to be at least 21 million consumers in the U.S. and growing.”
Differentiation From The Competition
What differentiates Kidizen from its competition? “Kidizen’s strong and active community of parents is our clear differentiator. Our key values include providing opportunities so parents can generate income in a flexible, sustainable way and connecting parents through a community built on shared experiences and goods. As a result, the activity we see on Kidizen goes well beyond commerce as groups are formed and friendships are established. Parents use the Kidizen platform to come together and support one another, whether it be to provide new sellers with tips and tricks or to help another parent through a challenging time in their personal life,” Graff revealed.
Future Company Goals
What are some of Kidizen’s future company goals? “As we continue to strengthen our core peer-to-peer marketplace, we are bringing on more clearance inventory from our brand partners. Our goal is to establish Kidizen as the one-stop shop for deals on quality kid brands, whether preloved or new-on-sale,” Graff concluded.
