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
Series A Deck

confidential

Customers care about shipping

Series A Deck

confidential

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.

Series A Deck

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.

Series A Deck

confidential

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

Series A Deck

confidential

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.

Series A Deck

confidential

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)

Series A Deck

confidential

Shippo is Stripe or Twilio for shipping!

Series A Deck

confidential

10

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

Series A Deck

confidential

11

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.

Series A Deck

confidential

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.

Series A Deck

confidential

13

Our results
Number of labels sold per month

13 months:
x million labels

Series A Deck

confidential

Net revenue per month

3 months:
y million
labels

Now:
z million
labels
14

Gross Merchandise Value

GMV per month

Series A Deck

confidential

$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.

Series A Deck

confidential

16

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

Series A Deck

confidential

17

Founders

Laura Behrens Wu

Simon Kreuz

CEO & Co-founder

COO & Co-founder

We build simply shipping technology with the merchants perspective in mind.

Series A Deck

confidential

18

Powering Shipping for Businesses

Thank you!

Appendix

TAM

Market total
$300 billion

Enterprise
34%

TAM
$30 billion

Market size

Series A Deck

confidential

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

Series A Deck

Carrier 1
Carrier 2

Small
packages

confidential

Total costs:
$20,000

Heavy
packages

22