what really happened to zulily
January 05, 2024

After rounds of layoffs and a CEO departure, online retailer Zulily says ‘financial instability’ has forced it to shut down

what happened to zulily why zulily closed

The online retailer Zulily is closing down, surprising customers and laying off hundreds of workers after efforts to salvage the business failed.


The Seattle-based company said in a notice on its website that it had tried to fill all pending orders and expected to manage that within the coming two weeks. Zulily said it was trying to ensure that orders that could not be filled were cancelled and refunded and offered a contact for customers who did not get their orders or refunds.

“This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action,” said the notice, signed by Ryan C. Baker, vice president at management consultant Douglas Wilson Companies, which is handling the receivership for the company.


Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily made a splash with products catering to families with young children and staged a successful IPO on the Nasdaq in 2013. But it was taken private after it was acquired in 2015 for $2.4 billion by QVC parent company Qurate, formerly known as Liberty Interactive. Zulily’s CEO Terry Boyle left the company at the end of October as financial troubles mounted following its acquisition by private equity firm Regent from Qurate in May.


The company’s liquidation followed several rounds of layoffs as Zulily struggled to compete with Amazon.

Instead of declaring bankruptcy, Zulily is using an alternative for winding down the business known as an Assignment for the Benefit of Creditors, or ABC. The company has transferred all its assets and business in trust to Zulily ABC, LLC, to pay creditors out of proceeds from selling them.


What was Zulily?

Zulily was an online retailer providing daily deals on various products.


The site offered heavily discounted invite only flash sales to its customers and gained huge popularity and rave reviews in its first operational months.


Most products were initially from little-known brands and included prenatal care products, baby gear, travel accessories, bedding and bath, children's clothing, toys, DVDs, and educational materials.

what happened to zulily

Why did Zulily fail and shut down?

The main culprit for the downfall of the popularity of Zulily is poor marketing and user-attention strategies, compounded by significant financial issues that ultimately led to its liquidation to satisfy creditors.


Most notably, in order to access the search engine and databases of Zulily’s shopping items, the platform required new visitors to give their email addresses prior to even seeing what the online store had to offer.


This marketing trick met with a lot of criticism because it violated some basic marketing principles. Zulily initially achieved record success with the number of new subscribers who registered on the site, but the Zulily team soon noticed that sales began rapidly to decline.


People gave their mail only to peek at the site and registered users couldn’t necessarily be considered loyal or even willing customers.


Zulily's inadequate marketing strategy and front-page email requests discouraged thousands of potential new customers to sign up, while their existing users often bought only once or anyway not enough to sustain the financial stability of the company.


Users also stated that they felt overwhelmed by the number of merchandise and flash sales invitations the e-shop offered so the company complied by diminishing them, and a decrease in revenue also followed.


Moreover, although Zulily sometimes offered brand names for ridiculously small prices, there would often be longer than expected delivery times to customers which also earned them poor reviews.


In addition to these factors, Zulily's ultimate closure was precipitated by financial issues. The company began liquidating its assets to satisfy creditors, indicating a critical need to address its debts. This led to the shutting down of several facilities and the loss of hundreds of jobs across multiple states. The financial distress became too overwhelming to continue operations, resulting in the shutdown of the business.


what happened to tophatter

As the e-commerce landscape continues to evolve, we've witnessed the closure of several marketplaces, leaving consumers and sellers seeking reliable alternatives. In this blog post, we'll explore the shifting tides of online retail, the closure of other marketplaces, and why our platform stands as a robust and trustworthy choice in the ever-changing world of digital commerce.


The E-Commerce Landscape: A Dynamic Evolution

The digital marketplace has witnessed dynamic shifts over the years, with some platforms facing challenges that led to their closure. As consumers and sellers adapt to these changes, it becomes essential to understand the key factors influencing the industry.


Marketplace Closures: Unveiling the Challenges

Several well-known marketplaces have shuttered their virtual doors, citing various reasons such as financial difficulties, changing market dynamics, or failure to adapt to emerging trends. These closures leave users in search of stable and reliable alternatives for their buying and selling needs.


Why Our Marketplace Stands Strong: A Beacon of Reliability

1. Trusted Platform Stability:

  • Our marketplace has demonstrated consistent stability, providing users with a reliable platform for seamless transactions and a secure environment for both buyers and sellers.

2. Enhanced User Experience:

  • We prioritize user experience, offering an intuitive interface, easy navigation, and efficient customer support to ensure a positive journey for every user.

3. Diverse Product Range:

  • Our platform hosts a diverse range of products, catering to a wide audience and ensuring that users can find what they need, from everyday essentials to unique and specialized items.

4. Seller-Friendly Policies:

  • We value our sellers and have implemented seller-friendly policies to encourage entrepreneurship, fair competition, and success for businesses of all sizes.

5. Innovation and Adaptability:

  • Unlike platforms that closed due to stagnation, we embrace innovation and adapt to industry trends. Our commitment to staying ahead in the digital marketplace ensures that users experience the latest features and advancements.

Embracing the Future of E-Commerce

In conclusion, as the e-commerce landscape transforms, our marketplace stands as a beacon of reliability and innovation. Users seeking a secure, user-friendly, and trustworthy alternative to closed marketplaces can find solace and opportunity within our digital realm. Join us on this journey towards a robust and flourishing e-commerce future.

Explore the possibilities, experience the difference, and choose a platform that not only adapts to change but leads the way in defining the future of online retail. Thank you for being a part of our dynamic and thriving online community.






Leave a comment

Please note, comments need to be approved before they are published.