May 11, 2015
San Francisco-based startup Shippo announced today that its 11,000 strong merchant customer base has completed a massive update to its API. Last September, we announced the company’s $2M seed funding led by SoftTech VC. Since joining Batch 8 of 500 Startups, Shippo has worked to become a leading player in ecommerce shipping solutions.
According to a press release today, the startup has supported millions of shipments via its API & web app in its inaugural year. What Shippo offers its customer base is the ability to print shipping labels through multiple carriers, offer radically discounted shipping rates, and increase the flexibility of powering shipping for online marketplaces via its API.
“It is the first shipping API to make available this kind of technology to ecommerce stores, which further automates and customizes shipping processes for customers with more expansive optimization needs.” according to the company.
The company’s tremendous early growth can be attributed partly to organic traffic through app stores like Shopify and Magento. The API update now enhances its core functionality. Marketplaces can now seamlessly utilize any merchant’s shipping account. This powerful flexibility strengthens Shippo’s dynamic shipping rate engine, providing an additional form of customization for customers looking to compare rates across multiple accounts within a single carrier. Not only does the engine allow for the tailoring of rates, but it also galvanizes the product’s scalability. The team has already seen a jump in growth purely due to sophisticated API customers leveraging this new feature to to ship more packages.
“Most initial customers of Shippo’s were SMBs, companies like Ascot+Hart, Case Nerd, and Brooklyn Candle Studio. Shippo has pursued larger, more established businesses over time, securing venture backed merchants and marketplaces as customers, which heavily contributed to the jump from zero to millions of shipping labels in less than twelve months,” today’s press release continued. “The company is leveraging this customer growth to expand its reach among shipping providers, signing on additional carriers in the UK, France, and Germany, with plans to include Australia soon.”
The startup projects the future of ecommerce will be APIcentric. Shippo is working toward continued success as it increasingly serves larger retailers, marketplaces, and platforms with higher shipping demands. Fortifying its API with new core features like multicarrier account access is at the core of its product growth, the end goal being to match demand and supply for shipping to always return the best shipping rates across all shipping providers.
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