ShipBob

Last updated
ShipBob
Private
Industry Third-party logistics, Fulfillment
FoundedSeptember 2014 in Chicago, Illinois, United States
FoundersDhruv Saxena, Divey Gulati
Headquarters
Chicago
,
United States
Number of locations
6
Area served
Worldwide
Key people
Number of employees
450+
Website shipbob.com

ShipBob is a tech-enabled fulfillment service that was launched in September 2014. [1] ShipBob allows businesses to sell products on their own websites where they can have full control over their customers' experiences, or via other online marketplaces. They focus on helping business owners and e-commerce sellers with logistics services such as inventory, order picking, packaging and labeling, shipping, and package tracking. They also provide a software solution to help users manage their business in a more efficient manner. They aim to help companies that don't have substantial resources or funding to achieve "Amazon-scale" logistics. [2] ShipBob is headquartered in Chicago, Illinois, and has fulfillment centers in Chicago, Brooklyn, Los Angeles, and San Francisco. As of June 13, 2017, ShipBob employs 125 people and has received more than $23 million in funding. [3]

Website set of related web pages served from a single web domain

A website or web site is a collection of related network web resources, such as web pages, multimedia content, which are typically identified with a common domain name, and published on at least one web server. Notable examples are wikipedia.org, google.com, and amazon.com.

In commerce, customer experience (CX) is the product of an interaction between an organization and a customer over the duration of their relationship. This interaction is made up of three parts: the customer journey, the brand touchpoints the customer interacts with, and the environments the customer experiences during their experience. A good customer experience means that the individual's experience during all points of contact matches the individual's expectations. Gartner asserts the importance of managing the customer's experience.

E-commerce is the activity of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

Contents

History

ShipBob was originally started in the summer of 2014 as part of Y Combinator's accelerator program. [1] The co-founders, Dhruv Saxena and Divey Gulati, came up with the idea while running their previous e-commerce business SnailMailPics. At SnailMailPics, Saxena and Gulati gained insight into the packing and shipping industry as well as the hassle of waiting in line at the post office. [4] Jivko Bojinov also assisted in founding the company. [5] In September 2014 the company launched publicly, choosing Chicago as its headquarters. [1]

In late 2014, ShipBob started to get early investors such as SV Angel and Joe Montana. [5] On April 29, 2015, ShipBob announced their seed-funding round of $1 million. This round was led by SV Angel, FundersClub, WeFunder, and others. This funding was utilized by ShipBob to add more employees and open a second fulfillment center located in Brooklyn. [1]

An investor is a person that allocates capital with the expectation of a future financial return. Types of investments include: equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, forwards, etc. This definition makes no distinction between the investors in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns a stock is a shareholder.

Joe Montana American football quarterback

Joseph Clifford Montana Jr., nicknamed "Joe Cool" and "the Comeback Kid", is an American former professional football player who was a quarterback in the National Football League (NFL) for 16 seasons with the San Francisco 49ers and Kansas City Chiefs. After winning a national championship at Notre Dame, Montana started his NFL career in 1979 with San Francisco, where he played for the next 14 seasons. While a member of the 49ers, Montana started and won four Super Bowls and was the first player ever to have been named Super Bowl Most Valuable Player three times. He also holds Super Bowl career records for most passes without an interception and the all-time highest passer rating of 127.8. In 1993, Montana was traded to the Kansas City Chiefs where he played his final two seasons, and led the franchise to its first AFC Championship Game in January 1994. Montana was elected to the Pro Football Hall of Fame in 2000, his first year of eligibility.

Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake in the company. The term seed suggests that this is a very early investment, meant to support the business until it can generate cash of its own, or until it is ready for further investments. Seed money options include friends and family funding, angel funding, and crowdfunding.

ShipBob announced a Series A funding round on June 16, 2016, which raised $4 million in funding, led by Hyde Park Venture Partners. Previous investors, such as FundersClub and SV Angel also took part in this round, along with such companies as Service Provider Capital and NFQ Capital. The money from this Series A round went toward hiring more staff and continuing expansion, with the goal of building more warehouses across the United States. [6] At this point in time, about two years after the initial involvement of Y Combinator, ShipBob employed 32 people full-time. [7]

A series A round is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchange for their investment. It is usually the first series of stock after the common stock and common stock options issued to company founders, employees, friends and family and angel investors.

On June 13, 2017, ShipBob announced their largest funding push to date, a Series B round that garnered $17.5 million. Bain Capital Ventures led the Series B investment. Previous investors also took part in the funding, including Hyde Park Venture Partners, FundersClub, Hyde Park Angels, and FJ Labs. Bain also gained a board seat in the company filled by Ajay Agarwal. With the help of this new investment, ShipBob added two more warehouses located in Los Angeles and San Francisco. [8] Additionally, ShipBob plans to hire more engineers to build out their software platform, with the goal of expanding into more cities. They will choose a new city for a new warehouse, focusing on areas of higher shopper density. [9] As of the date of the Series B announcement, ShipBob has 125 employees and has received over $63 million in funding since launching. [3]

Bain Capital Ventures LLC is the venture capital division within Bain Capital, which has approximately $105 billion of assets under management worldwide. The firm's early-stage investments have included Staples, LinkedIn, Kiva Systems, Jet.com and Shopping.com. Bain Capital Ventures manages $5.1 billion of committed capital, has over 70 active portfolio companies, and has offices in Boston, New York City, Palo Alto, and San Francisco.

Hyde Park Angels is a venture capital group founded in 2007 and based in Chicago, IL, which focuses on angel investments.

Board of directors Board composed of directors

A board of directors is a group of people who jointly supervise the activities of an organization, which can be either a for-profit business, nonprofit organization, or a government agency. Such a board's powers, duties, and responsibilities are determined by government regulations and the organization's own constitution and bylaws. These authorities may specify the number of members of the board, how they are to be chosen, and how often they are to meet.

In September 2018, Shipbob raised $40 million in new funding to expand the warehousing and technology services. [10]

Products/Features

ShipBob's main features include a software platform, storage, and third party logistics (3PL). Its software is proprietary technology that allows for the automation of each order and inventory management. The software keeps track of inventory, helps with the managing of orders, tracks shipping and allows the business using it to communicate with their customers. The platform also allows for integration with e-commerce websites such as eBay, Shopify, Amazon, Magento, BigCommerce, WooCommerce, ShipStation, and Backerkit. For storage, ShipBob has fulfillment centers in which the companies can warehouse inventory. Lastly they provide 3PL features such picking, packaging, and shipping via USPS, UPS, FedEx, DHL, and others. Tracking numbers are provided for each package. [1] [2] [4]

Operations

ShipBob operates its own fulfillment centers. After receiving orders through their customers' e-commerce websites, they pick products out of stored inventory, package them, and ship them to purchasers. [11] ShipBob operates on two fronts: its software platform and its physical logistics. [2]

The software has features that make it easier for a company to manage its operations. It is an order management tool that integrates with e-commerce websites such as EBay, Etsy, and Amazon, allowing for the process of shipping to be automated. The platform also lets businesses manage inventory and orders and allows them to communicate with customers. [2] [6]

Utilizing their warehouses, ShipBob stores the inventory for clients, so when orders are placed they can quickly package and ship the product. [12] ShipBob does not actually do each delivery. Instead, they hand the packaged orders off to shippers such as FedEx, UPS, USPS, DHL, or other regional carriers. With the combination of software and physical help, ShipBob provides entrepreneurs control of their customer experience. [1] [13]

ShipBob does not charge for the use of their software as a service (SaaS); it is free for customers. ShipBob instead produces revenue from their fulfillment process and warehousing. [3] ShipBob charges a pre-negotiated fee per shipment. There is also a set charge for storage.

Partners

Partners and companies that ShipBob works with include eBay, Etsy, Shopify, BigCommerce, Woocommerce, Magento, Amazon, Shipstation, Backerkit, Kickstarter, Indiegogo, USPS, UPS, FedEx, and DHL. [1] [2] [6] [11]

Awards/Honors

In March 2015, Chicago hosted their first every Timmy Awards. Run by Tech in Motion, this award ceremony acknowledges the area's best companies in the technology field. The event had 30 finalists, including Sprout Social and Cars.com. These came from over 200+ nominations and over 11,000 votes were tallied. ShipBob took the crown for Chicago's best startup. [14]

In October 2015, Chicago Inno announced 150 nominees for their "50 on Fire" award, which honors people and companies that are performing well and growing fast on the Chicago tech scene. The nominees spanned many different industries. Anthony Watson, a Founding Partner and Head of Business Development at ShipBob, was nominated for this award. Since Watson joined the team, ShipBob grew at a month over month rate of 30%/ [15]

On August 25, 2016, the second Timmy Awards were announced. This time ShipBob got a nomination in the category of best tech manager. Dhruv Saxena was one of 10 finalists for the award because of his company’s cultural values, which allow employees the power to make certain decisions. [16]

In May 2017, ShipBob was one of five finalists for the sixth annual Moxie Awards, presented by Built in Chicago, a hub for startups and technology. It honors entrepreneurs and companies that are helping improve the Chicago tech ecosystem. ShipBob was nominated for Best B2B Startup. [17]

FitSmallBusiness, a company focused on the success of small businesses, decided to give out their own honors for 3PL companies. ShipBob received the honors of best small business fulfillment center and best 3PL service. [18]

Related Research Articles

Stamps.com is an American company that provides Internet-based mailing and shipping services. Stamps.com is a public company and trades on the NASDAQ exchange under the symbol STMP. The company's main offices are located in El Segundo, California.

Logistics automation

Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.

Menlo Worldwide Logistics

Menlo Logistics is a global supply chain company operating in 20 countries on five continents. Its core business offerings include third-party logistics and supply chain management. Menlo Logistics is a business unit of Con-way, and its corporate headquarter is in San Francisco, California. Sister companies include Con-way Freight, Con-way Truckload, and Con-way Multimodal.

Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. As in retail business, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.

Newegg

Newegg Inc. is an online retailer of items including computer hardware and consumer electronics. It is based in City of Industry, California, in the United States. In 2016, Liaison Interactive, a Chinese tech company, acquired a majority stake in Newegg in an investment deal.

Extron Logistics, LLC is an American company that provides solutions to supply chain operations.

Quartzy company

Quartzy is an online lab management platform and scientific research supply marketplace. It is a startup company based in Hayward, Calif. Quartzy features include collaborative order requests and supply tracking for labs and research groups, inventory management tools, and product quotes for price comparisons. Quartzy is used by more than 200,000 scientists worldwide.

Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services "including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants."

Third-party logistics in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.

XPO Logistics, Inc. is one of the 10 largest providers of transportation and logistics services in the world. It operates in 32 countries, with approximately 100,000 employees and over 50,000 customers, including 69 of the Fortune 100. XPO's corporate headquarters are located in Greenwich, Connecticut. Its European headquarters are located in Lyon, France.

Vend (software)

Vend is cloud-based point-of-sale and retail management software that lets retailers run their business in-store, online, and via mobile. Vend's solution includes POS software, inventory management, E-commerce, customer loyalty, and reporting analytics. Vend integrates with other business and payments applications including Shopify, Square, Xero and PayPal, and is a key retail partner in Apple's global Mobility Partner Program.

Flexport

Flexport is a freight forwarding and customs brokerage company based in San Francisco, California.

Popout, Inc. DBA Shippo is an American software company that helps e-commerce businesses, online marketplaces, and platforms integrate shipping with multiple carriers through their API and web application. Shippo allows users to compare shipping rates, create labels, generate international customs documents, return labels, and track parcels. Some of their customers and partners include eBay, Freestyle Solutions, Tuft & Needle, Weebly, GoDaddy, Shyp, Mercari, Stripe, Sellbrite, and Snapfulfil. As of October 2017, Shippo has raised over $29 million in funding lead by Bessemer Venture Partners, Union Square Ventures, and SoftTechVC.

Omnichannel Order Fulfillment is a material handling fulfillment strategy and process that treats inventory as fully available to all channels from one location. While the internal fulfillment process may diverge to optimize the operations, the outbound process only diverges at the point of pack out and shipping.

Doorman was a privately held American technology company specializing in logistics services and products. The company managed and operated fulfillment centers and independent driver fleets in densely-populated urban areas, addressing the last mile gap between online retailers and their customers. It also developed, marketed and operated the Doorman mobile app, which allowed consumers to use their iOS or Android-based smartphone to schedule evening delivery of goods purchased online, or arrange pick up of goods intended to be shipped back to an online retailer.

Eclipse ERP is a real-time transaction processing accounting software used for order fulfillment, inventory control, accounting, purchasing, and sales. It was created for wholesale distributors in the Electrical, HVAC, Plumbing, and PVF industries, but is used by a wide range of market sectors. At one point this software was called Intuit Eclipse DMS, and Activant Eclipse, and Eclipse Distribution Management System.

Gati Ltd

Gati is an Indian multinational courier delivery services company headquartered in Hyderabad, India. It is known for supply chain solutions with express distribution and also offers warehousing, freight forwarding, trading, cold chain, e-commerce and fulfilment services. Gati has offices in all major cities of India, with presence in Singapore, Hong Kong, China, Nepal and Thailand.

Delhivery is a third-party logistics service provider, operating in over 1,200 cities in India. It was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati is backed by funding from Tiger Global Management, Multiples, Carlyle Group, Fosun Group, Nexus Venture Partners. The Gurugram-based company has 30 fulfillment centres and over 2,500 delivery partners and 19 automated sorting centres that drive its operations.

Quiet Logistics is a third-party logistics (3PL) company headquartered in Devens, Massachusetts. Quiet specializes in providing order fulfillment and returns management services to e-commerce retailers.

References

  1. 1 2 3 4 5 6 7 "ShipBob raises $1M seed round, eyes launch in Brooklyn". Builtinchicago.org. Retrieved 19 January 2018.
  2. 1 2 3 4 5 "Have a Small eCommerce Business? You May Need ShipBob". Smallbiztrends.com. Retrieved 19 January 2018.
  3. 1 2 3 "ShipBob raises $17.5 million to help ecommerce businesses with shipping and logistics". Venturebeat.com. Retrieved 19 January 2018.
  4. 1 2 Shu, Catherine. "YC-Backed ShipBob Helps Small Business Owners Avoid Post Office Purgatory". Techcrunch.com. Retrieved 19 January 2018.
  5. 1 2 "ShipBob". Angel.co. Retrieved 19 January 2018.
  6. 1 2 3 Kolodny, Lora. "ShipBob raises $4 million to help small retailers ship goods like Amazon Prime". Techcrunch.com. Retrieved 19 January 2018.
  7. ↑ "Archived copy". Archived from the original on 2017-07-02. Retrieved 2017-07-05.CS1 maint: archived copy as title (link)
  8. ↑ "ShipBob gains $17.5m in Series B funding". Americanshipper.com. Retrieved 19 January 2018.
  9. ↑ "E-commerce logistics startup raises $17.5 million". Business Insider . Retrieved 19 January 2018.
  10. ↑ Phillips, Erica E. (2018-09-06). "ShipBob Raises $40 Million to Back E-Commerce Fulfillment Growth". Wall Street Journal. ISSN   0099-9660 . Retrieved 2018-09-10.
  11. 1 2 "Archived copy". Archived from the original on 2017-07-02. Retrieved 2017-07-05.CS1 maint: archived copy as title (link)
  12. ↑ Russell, Kyle. "YC-Backed ShipBob Raises $1M To Help Small Businesses Deliver Orders On Time". Techcrunch.com. Retrieved 19 January 2018.
  13. ↑ "ShipBob gets $17.5 million from Bain, others". Chicagobusiness.com. Retrieved 19 January 2018.
  14. ↑ "First Female Winner of "Best Technology Manager" at Inaugural Chicago Timmy Awards". TechInMotionEvents.com. Retrieved 19 January 2018.
  15. ↑ "Archived copy". Archived from the original on 2016-03-24. Retrieved 2017-07-05.CS1 maint: archived copy as title (link)
  16. ↑ "Meet 30 of Chicago's Top Tech Influencers (and 2016 Timmy Award Finalists)". TechInMotionEvents.com. Retrieved 19 January 2018.
  17. ↑ "It's on: Meet the 2017 Moxie Awards finalists". Built In Chicago. Retrieved 19 January 2018.
  18. ↑ "Order Fulfillment Services: Who's the Best 3PL Company?". Fitsmallbusiness.com. 22 June 2017. Retrieved 19 January 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.