2010 State of the Union and Shipwire
If you follow this blog consistently it won’t be a surprise to you that Shipwire is a platform for entrepreneurial merchants to grow. With multiple warehouses in the U.S., Canada and Europe Shipwire helps merchants grow their overseas sales, said another way “increase exports”. As an outsourced platform for order management and order fulfillment Shipwire also helps merchants cut infrastructure costs (reduce infrastructure investment and focus capital on inventory and sales) Keetsa saved 30% by outsourcing warehousing and shipping to Shipwire – rather than invest in their own warehouse (save warehouse costs). Keetsa estimates that they save 80% of their time by having Shipwire handle their storage and shipping.
President Obama gave his 2010 State of the Union address this week and the economy was front and center. Two points of the State of the Union were particularly compelling to the Shipwire team. First, The President wants to grow U.S. export volume two fold in five years. Second, The President identified small businesses as a catalyst for growth and wants TARP funds to be redirect to local banks and small business lending.
Here are the quotes that we found particularly invigorating because it puts Shipwire right in the cross hairs of two major Presidential initiatives. If you missed our previous blog, we were one of the tools that President Obama used during his successful campaign (here is that blog post – promotional fulfillment).
“…we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)
“We should start where most new jobs do —- in small businesses, companies that begin when — (applause) — companies that begin when an entrepreneur — when an entrepreneur takes a chance on a dream, or a worker decides it’s time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they’re ready to grow. But when you talk to small business owners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they’re mostly lending to bigger companies. Financing remains difficult for small business owners across the country, even those that are making a profit.
“So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I’m also proposing a new small business tax credit — one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we’re at it, let’s also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.)”
Shipwire is excited to help our country reach their export goals. We believe we have created a platform for this growth.
By providing a success-based alternative to investing in a warehouse we are already helping merchants maximize their cash flow by not having to pay for warehouse leases and build-outs. Eliminating an inefficient sunk cost (warehouse investment) and turning this into a variable cost of sales.
We’ll blog more on these exciting trends in the coming months.