Powering Shipping for Businesses
DATE
Shippo at a glance
We make shipping easy for
business
Access to a large network of shipping
providers
annualized net revenue run rate
$xx million
Simple but high functionality software
Discounted shipping rates
To be the largest shipping network
without owning any assets.
Series A Deck
$xx million
confidential
annualized GMV run rate
xx million
annualized packages shipped
February 2014
Date launched
Online shopping fuels our growth
$300 billion
Global parcel shipping market size
15%
E-commerce year-over-year growth
E-commerce is the fastest growing trillion dollar market
globally.
8.4bn
Packages shipped globally in 2015
500k+
Shipping providers globally, including same day
delivery services
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confidential
Customers care about shipping
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Shipping in e-commerce is a major pain point
Market is fragmented
Each carrier has different national, regional, overnight or same-day services, and the most
optimal choice often is a smart multi-carrier strategy. There is no optimization layer across
different providers. Optimization is done manually.
Pricing are not transparent
Rate charts are complex, because they depend on at least 5 dimensions. Discounts are only
available at scale. Negotiating discounts takes time and industry knowledge.
APIs are complicated or non-existent
Automated interfaces are not developer-friendly. Documentations are hundreds of pages
long and require shipping knowledge.
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confidential
Cart abandonment is expensive for merchants
Cart abandonment is 28%
higher when there are
additional shipping costs at
check-out.
$4 trillion worth of shopping
carts have been abandoned in
2014.
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Growth of relevant segments
Not every e-commerce segment can use Amazon warehouses,
and these segments are growing.
120
100
80
60
40
20
0
SMB
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Madeto-order
C2C
Handmade Marketplaces
Free shipping is expensive for merchants
Shipping costs as
percentage of total
costs
Amazon
12%
SMBs
35
%
Free shipping is a competitive advantage limited to retail giants.
To benefit from discounted shipping rates merchants have to compete
with the scale of the likes of Amazon.
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Now is the time to solve it
Online payments has been tackled by PayPal and Stripe.
Shipping is the step after payments.
Amazon has changed the shipping game.
Same day delivery is becoming more common
More non-traditional shipping providers are emerging
Amazon Prime paid subscribers grow 53% yoy
E-commerce platforms have become mainstream.
Shopify and Etsy IPOs in 2015
Shopify grew 10x in 3 years (now +150,000 merchants), Etsy grew 12x in 6 years (now
1.4M merchants)
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Shippo is Stripe or Twilio for shipping!
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The Shippo platform
One API integration connects businesses to a large network of national and international
shipping providers.
Shippo
API
E-commerce
Stores
Shipping
Providers
Shipping rates API
Label Purchase API
Tracking API
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Additional capabilities
Discounted Rates
Save on USPS or DHL shipments by
using Shippos default master
accounts.
Tracking API
Retrieve the status of any package,
including webhook-based
notifications on new events.
Batch Label Creation
Shippo is built for scale our batch
API endpoint and UI allows for instant
creation of thousands of labels.
Address Validation
Street-level address validation is built
into our API and UI to prevent
shipment issues early on.
Modern, developer-friendly API
We offer client libraries in all major
programming languages. The API is
well documented & easy to integrate.
Full International Support
Automatically get customs
declarations and commercial invoices
for international shipments.
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12
Our Market
APPS
API
Customer acquisition
through the app stores of
e-commerce platforms
Example: Shopify,
BigCommerce, Etsy,
Magento etc.
Developer centric acquisition
strategy
Focus on providing the
easiest solution
Channels: SEO, developer
communities, content,
product marketing
Modeled after Stripe &
Twillio
Partnerships
Channel partnerships with
SMB aggregators, such as
platforms, marketplaces,
inventory management
systems etc.
Add value to the platform
by providing a default
solution
Modeled after PayPal &
Stripe
Potential customers are actively looking for a shipping solution. We need to be there
with the right product marketing when they are looking.
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Our results
Number of labels sold per month
13 months:
x million labels
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Net revenue per month
3 months:
y million
labels
Now:
z million
labels
14
Gross Merchandise Value
GMV per month
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$xxxxxxx
Dec 15
15
The network effects
Discounted
Rates
Economies of
scale
Shipping
Volume
Data network
effect
Data
Leverage
Data network effect: the more packages we ship the more accurately we can predict
metrics relevant to shipping, such as transit times, and the better recommendations we
can give for additional opportunities.
Were able to assemble our own virtual carrier network by combining shipping providers.
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The Shippo Series A
Series Seed
Jun 2014
Seed Extension
Jul 2015
Series A
now
$1.8M
$1.5M
$7M
Jeff Clavier (Softtech
VC) joined BOD next
to founders Laura and
Simon
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Founders
Laura Behrens Wu
Simon Kreuz
CEO & Co-founder
COO & Co-founder
We build simply shipping technology with the merchants perspective in mind.
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Powering Shipping for Businesses
Thank you!
Appendix
TAM
Market total
$300 billion
Enterprise
34%
TAM
$30 billion
Market size
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SMBs
42%
Mid
Market
24%
US retail e-commerce market
breakdown
21
The benefit of using multi-providers
If merchants sell a variety of different items with different dimensions optimizing
between shipping providers provides further saving opportunities.
$
Carrier 1
Total costs:
$25,000
All
packages
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Carrier 1
Carrier 2
Small
packages
confidential
Total costs:
$20,000
Heavy
packages
22
