Shippo offer an instant, powerful yet affordable shipping infrastructure for companies of all sizes, but particularly small and medium enterprises. Their dashboard platform gives their customers access the real-time rates, paperwork, tracking and returns, and access to a large network of shipping providers to mobilize their business logistics. By using the same software model as the successful payment provider Stripe, Shippo have been able to provide an easy solution that saves businesses money and allows them to optimize their shipping services over multiple shipping carriers.
HOW THEY’RE DISRUPTING
Large marketplace solutions such as Amazon completely dominate the e-commerce market thanks to incentives such as Prime services and same-day deliveries. Amazon’s Prime subscription has been growing over 50% year on year. Their data points across their businesses mean they can optimize and streamline their logistics. With limited or no specialised departments to deal with shipping logistics, independent and smaller businesses are struggling to compete. Shippo’s API software allows them to act as the clever middle man between e-commerce platforms and shipping providers, both nationally and internationally.
Shipping is one of the fastest growing markets – in 2015 the global parcel shipping market size was estimated at $300 billion and went up by 15% on previous years. Etsy have seen similar success in just 6 short years by creating a community market place for e-commerce and 12x growth.
INVESTMENTS AND FUTURE
Shippo reported having had 71% year-over-year growth per customer in 2017. They have raised $29.3 billion since 2013. Their Series B venture round of $20m was led by Bessemer Venture Partners and closed in Oct 2017.