The blue midi dress features a flattering shirred bodice and short puffed sleeves which can be worn either off or on the shoulders – the perfect beachy outfit for Meghan's new life in California.
The family-owned company from Meghan's home town was over the moon when they spotted her wearing the dress, taking to Instagram to share footage of her wearing it and writing: "So this happened today!"
The dress is still available for sale via Velvet Torch's website, however, is currently on back order and will ship later this month.
Meghan fans have given the dress the tick of approval, with many saying they were desperate to get their hands on it given it was so affordable.
"Love it and it's all gone! I thought the dress costs at least $300," one person wrote.
"I need this dress," another added.
'MEANING' BEHIND MEGHAN'S DRESS IN OPRAH INTERVIEW
Meanwhile, Meghan's choice of dress for her much-anticipated interview with Oprah Winfrey has also grabbed attention, particularly for its lotus flower detail.
The Duchess wears a $5880 black Giorgio Armani dress for the interview, in which she and Harry are expected to reveal in detail why they decided to leave royal life.
According to British newspaper The Telegraph Meghan's dress conveys a message too and was chosen for its "symbolic meaning of revival".
"The lotus flower's daily resurrection is considered proof of its determination and will to live," the article explains.
"The Duchess understands that a lotus seed can withstand thousands of years without water, able to germinate over two centuries later.
"This 'refusal to accept defeat' is very much how she sees her own battle against the pressures of royal life."