Behrens-Wu: Shippo offers discounts up to 60% off retail shipping rates
Laura Behrens-Wu · EP 439: $9m Raised, GoShippo Helps Little Guy Drop Ship 1,000,000+ Packages Per Month Already with CEO Laura Behrens Wu · Oct 6, 2016 · at 5:30
Laura Behrens-Wu, CEO of Shippo, describes how Shippo aggregates package volume across merchants to secure carrier discounts.
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“So our discounts depending on size and weight and shipping provider go as high as 60% off compared to retail shipping rates.”
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More from Laura Behrens-Wu
Shippo processes over 1 million packages per month
“And today we're doing millions of packages a month.”
Carriers excel at physical transport but fail as tech companies
“The shipping providers, they're awesome at transporting your items, but they're not tech companies.”
Shippo achieved profitability in early 2016
“So we've been able to be profitable since early this year.”
Shippo will not sell to carriers like UPS or FedEx
“Here, what we're talking about is that we really try to be carrier agnostic. So we don't want to be owned by the UPS or FedEx or USPS. We want to work with all different shipping providers. That's the power of the platform.”
Behrens-Wu: Shipping costs eat 15% to 30% of e-commerce product costs
“So it's anything between 15 to 30% depending on the size of your e-commerce store.”
Behrens-Wu: Shippo charges a flat five cents per shipping label
“No, it's pay as you go. It's five cents per label and that makes it interesting for like any type of e-commerce store, the really small ones just getting started. To bigger e-commerce stores shipping hundreds of thousands of packages.”