Several years ago, Laura Behrens Wu wanted to start an e-commerce store. But as she was building out her business plan, she realized that figuring out the complexities of shipping was mind-boggling. Thanks to Amazon, customers now expect fast, free shipping. While other big players like Walmart can compete with that, it’s far harder for the little guys of the e-commerce world.
In 2013, she launched Shippo with her cofounder, Simon Kruez. The platform connects businesses with every single shipping option on the market, ranging from USPS to small regional carriers like Newgistics. This helps businesses calculate the best possible rates for every sale and helps them determine how much they need to mark up products to be able to offer free shipping. It also manages more complicated shipping issues, like sending products internationally, return shipping, and insurance.
Shippo has a large client base, including the mattress-in-a-box brand Tuft & Needle, beauty subscription Ipsy, and Martha Stewart’s meal kit, Marley Spoon. Today, the company announces a $20 million Series B investment, led by Bessemer Venture Partners. Wu, who is the company’s CEO, hopes this will help Shippo expand its reach, particularly to small players that are currently struggling to compete with Amazon and Walmart.ES