Shipwire in the News

Shipwire Urges UK Businesses to Learn from the Royal Mail Postal Strikes

Business Wire, Nov 4, 2009

Shipwire urges UK businesses to learn from the Royal Mail postal strikes and implement an order delivery crisis plan

Palo Alto, CA—November 4, 2009 Shipwire, the e-commerce order fulfillment company, is today advising small businesses to learn a valuable lesson from the Royal Mail strikes. As reports of Christmas disruptions and weeks of backlogs continue to populate the UK media and the threat of additional strikes looming, the crisis is by no means over. Shipwire believes that this will not be the last strike that small businesses will encounter and that they should heed the warning to avoid impact in the future.

“UK small businesses have been, in the most part, slow to act in the face of the crisis. Royal Mail is well known for a history of industrial action and it’s surprising that many more businesses have not planned ahead. The direct impact has been severe, from sliding consumer confidence to the huge increase in customer service costs,” says Damon Schechter, founder and CEO of Shipwire, and author of Delivering the Goods: The Art of Managing Your Supply Chain (Wiley, 2002).

John Ellen CEO of NetDirectDeals.co.uk comments, “The industrial action from Royal Mail no doubt has caused major inconveniences to the day to day running of our business. We have a greater amount of support tickets from concerned customers we have to deal with, as well as the threat of negative feedback for delays in deliveries being posted to our Amazon® or eBay® selling profiles. We are starting to use other independent couriers for larger items and no doubt we will use these more frequently in the future if more industrial action follows. As a mail order business, we cannot be at the mercy of Royal Mail; we need to use alternative carriers where possible to avoid delayed deliveries.”

In an already difficult market, Shipwire believes that businesses need to limit the damage of postal strikes and implement a delivery crisis plan that should safeguard them in the future. While businesses should look at all options available, Shipwire recommends considering the following tips:

  1. Seek alternative carriers. The strike should see the emergence of more companies looking to target dissatisfied Royal Mail customers. Look for smaller and local carriers that are providing an alternative to Royal Mail. Work with your existing fulfillment and drop shipping vendors to ensure you have reasonable alternate carriers available as needed.
  2. Be location smart. Businesses should place goods close to their customers. This will save shipping costs and ensure that the business is not reliant on any one region. This is especially important for merchants that sell overseas. Placing product in the local market can insulate against future Royal Mail strikes and significantly cut your shipping costs by eliminating cross-border international shipments. Global payment services like PayPal® allow you to take credit cards internationally and can be automated with your local distribution center.
  3. Speak to your customers. Businesses should clearly communicate alternative available options to customers and make them aware of any additional measures that they are taking to protect them. This is especially important for orders acquired through marketplaces with active buyer feedback such as eBay or Amazon.
  4. Avoid mispriced shipping rates. Businesses that don’t have alternate delivery methods built into their shopping cart checkout may be mispricing delivery rates, leading to costs that their businesses will have to absorb.
  5. Outsource product fulfillment. By outsourcing product distribution you will gain the expertise of a company who can manage and advise you throughout a crisis and provide alternatives, allowing you to focus on building your business, instead of watching the news page.

Shipwire handles the storage, packing and shipping of products on behalf of manufacturers and retailers from a global network of warehouses in the U.S., Canada and Europe. See the Shipwire response to the Royal Mail strike at http://www.shipwire.com/blog

About Shipwire (http://www.shipwire.com)
Shipwire provides growing e-tailers with e-commerce order fulfillment services powered by a global warehouse network and its Store-Sell-Ship™ platform. Shipwire eliminates the hassle of storage and shipping, so merchants can focus on growth. Convenient facility locations: Warehouse Los Angeles, warehouse Reno, warehouse Chicago, warehouse Toronto, warehouse Vancouver, warehouse London. Shipwire allows merchants to drastically reduce shipping costs by locating inventory closer to buyers. Usage-based plans start at just $29/month, and enable merchants to locate inventory in all warehouses, with no contract commitments. Shipwire is the only warehouse logistics service that instantly integrates with shopping carts and inventory management systems. Shipwire is developer and partner friendly; learn more about our shipping affliate partner program or get our outsourced e-commerce order fulfillment guide at http://www.shipwire.com/partner. Stay up to date with our shipping fulfillment blog. Print online postage USPS. For a free trial or more information, contact 1-888-SHIPWIRE or visit http://www.shipwire.com/trial. Shipwire press resource center.

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Easier Shipping is in the Clouds

E-commerce Times, June 18th 2009

Using Software as a Service (SaaS) or cloud computing to outsource otherwise costly infrastructure — such as human resources, call centers and automated payroll — has allowed many savvy small businesses to improve efficiencies, grow profits and maintain their business focus by buying services on demand. The benefits of the on-demand model, such as low- or no-cost resources on demand, and paying only for services used are now being applied to previously cloudless business practices. This article discusses Shipwire Internet-delivered third-party order fulfillment warehouse logistics service. Read about Internet-delivered order fulfillment. | PDF version.

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Recession-Expansion: Savvy Small Businesses’ Path to Growth

Business Wire, Mar 2, 2009

Recession-Expansion: Savvy Small Businesses” Path to Growth in a Cash-Strapped Economy Starts with Shipping

Sunnyvale, CA—March 2, 2009 In order to manage the double-edged sword of growth in a recession, businesses must evaluate where they can replace investments with innovation… Shipping and warehousing is one area that is essential to accelerating business growth, and simultaneously can be a drain on financial and time resources. By re-evaluating shipping and logistics processes and leveraging Web-based innovation, businesses can take a hands-off approach, encourage sustainable growth and uncover hidden savings… Marc Blaiwes, co-owner of car seat cover e-commerce company SeatGlovers, says “Shipwire is granting us immunity to all the flux in the market… Shipping was a huge hassle for years, and it prevented me from growing my business. Finding Shipwire was as big for my business as selling on eBay and sourcing with Alibaba. We”re growing exponentially and I”m realizing the true potential of my business. All of this at a time when many other merchants are just trying to stay afloat. Talk about a competitive advantage!”

Business expansion in a recession economy is an uphill battle for small businesses. When a small business does perform well—increasing sales or expanding into new markets—they often struggle to fund the overhead or infrastructure to support growth. In order to manage the double-edged sword of growth in a recession, businesses must evaluate where they can replace investments with innovation.

Shipping and warehousing is one area that is essential to accelerating business growth, and simultaneously can be a drain on financial and time resources. By re-evaluating shipping and logistics processes and leveraging Web-based innovation, businesses can take a hands-off approach, encourage sustainable growth and uncover hidden savings.

Marc Blaiwes, co-owner of car seat cover e-commerce company SeatGlovers, did what many smart entrepreneurs in today’s climate should—he found a niche product with an untapped market and focused his energies. However, the sales success that followed was too much to handle. Marc needed to expand his warehouse, but the added costs threatened his profit margins and would have required product price increases. “Large companies play the expansion game all the time by building out storage and inventory and eating the added costs until business catches up,” said Blaiwes, “Small businesses just don’t have that luxury. That’s why we needed Shipwire—to help us manage the double-edged sword of business growth.”

“Shipwire gives merchants the ability to delay or avoid costly warehouse infrastructure projects. Our global warehouse network provides the key to unlocking hidden savings in the shipping supply chain: store inventory closer to local buyers and drastically cut parcel shipping costs,” said Shipwire CEO and founder Damon Schechter. “Shipwire, the leading e-commerce order fulfillment and shipping service, is the modern-day facilitator of this business model for entrepreneurial success; allowing merchants to funnel their available cash into sales and growth, not into operations and logistics.”

Instead of building their own warehouses or curtailing distribution growth, businesses look to Shipwire for e-commerce order fulfillment services powered by a global logistics warehouse network. With warehouses in Los Angeles, Reno, Chicago, Toronto, Vancouver and the U.K., Shipwire allows merchants to drastically reduce shipping costs by locating inventory closer to buyers and eliminating expensive warehouse investments. Usage-based plans start at just $29/month and enable merchants to locate inventory in all warehouses with no contract commitments. Shipwire is the only shipping solution that instantly integrates and adds order fulfillment and shipping for shopping carts and inventory management systems.

“Shipwire is granting us immunity to all the flux in the market,” said Blaiwes. “Shipping was a huge hassle for years, and it prevented me from growing my business. Finding Shipwire was as big for my business as selling on eBay and sourcing with Alibaba. We”re growing exponentially and I”m realizing the true potential of my business. All of this at a time when many other merchants are just trying to stay afloat. Talk about a competitive advantage!”

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Note to editors: Screen shots, CEO images, customer interviews and case studies are available upon request.

About Shipwire (http://www.shipwire.com)
Shipwire provides growing e-tailers with e-commerce order fulfillment services powered by a global warehouse network and its Store-Sell-Ship™ platform. Shipwire eliminates the hassle of storage and shipping, so merchants can focus on growth. Convenient facility locations: Warehouse Los Angeles, warehouse Reno, warehouse Chicago, warehouse Toronto, warehouse Vancouver, warehouse London. Shipwire allows merchants to drastically reduce shipping costs by locating inventory closer to buyers. Usage-based plans start at just $29/month, and enable merchants to locate inventory in all warehouses, with no contract commitments. Shipwire is the only warehouse logistics service that instantly integrates with shopping carts and inventory management systems. Shipwire is developer and partner friendly; learn more about our shipping affliate partner program or get our outsourced e-commerce order fulfillment guide at http://www.shipwire.com/partner. Stay up to date with our shipping fulfillment blog. Print online postage USPS. For a free trial or more information, contact 1-888-SHIPWIRE or visit http://www.shipwire.com/trial. Shipwire press resource center.

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Former COO of FedEx Ground, Ivan Hofmann, Joins Shipwire Advisory Board

Business Wire, September 29, 2008.

Merchants Using Shipwire to Benefit from Hofmann’s 33 Years of Logistics and Supply Chain Expertise.


Sunnyvale, CA, September 29, 2008
Shipwire, Inc. today announced the addition of business-logistics industry veteran, Ivan Hofmann, to its advisory team in the role of logistics advisor to the Shipwire board and executive team. With 33 years of experience and success, Hofmann is a recognized leader in the $1.2 trillion business-logistics industry, having contributed significantly to its growth and development as president of RPS Inc. (Roadway Package System) and EVP and chief operating officer of FedEx Ground. Hofmann brings to the Shipwire team a deep expertise in business and small parcel ground shipping.

“Small businesses have needed an easy-to-use Internet-delivered service that empowers them to enter new markets and grow sales,” states Hofmann. “Shipwire’s logistics platform gives merchants powerful shipping and order fulfillment tools as well as supply chain insight that solves major warehouse and shipping headaches for small- business merchants. Similar to FedEx Ground, Shipwire empowers business owners with the tools to make complex logistics operations easy, even for the most time-strapped business owner. For retailers in growth mode, outsourcing their warehouse storage and order fulfillment to Shipwire lets them focus on growing their core business.”

Ivan Hofmann, retired chief operating officer of FedEx Ground, brings to Shipwire extensive expertise in logistics, transportation, warehouse distribution and shipping. Mr. Hofmann joins Shipwire after a successful 33-year career with transportation logistics companies that began in 1970 when he joined a national LTL carrier. Between 1973 and 1985 he held roles related to sales, logistics transportation, warehousing distribution services and district management with Roadway Express. In 1985 he became vice president of Operations of Roadway Package System Inc., the forerunner of Fedex Ground Inc. Promoted in 1990 to senior vice president of operations, he became president of RPS Inc. on January 1, 1993. During his tenure, the company reached significant sales and operations milestones, exceeding $1 billion in annual revenue and reaching 100 percent coverage of the North American market. With the acquisition of former RPS parent company Caliber System by FedEx in January 1998, Hofmann was named executive vice president and chief operating officer of FedEx Ground. After helping build FedEx Ground into a major competitor in the business-to-business and small-package shipping market, Hofmann retired from the company in 2004.

Damon Schechter, founder and CEO of Shipwire, and author of Delivering the Goods: The Art of Managing Your Supply Chain (Wiley, 2002) states, “Ivan Hofmann’s addition to our team has already proven to be a major benefit both to Shipwire and to the companies using our services. Ivan personally walks the floor of our business and provides hands-on advice, allowing us to provide a much better experience to our customers. His invaluable expertise will help us accelerate growth and continue our aggressive international expansion. Already, we”ve seen results in cost containment, volume shipping discount negotiations and strategic expansion.”

Hofmann states, “I”ve spent much of my career building scalable outsourced shipping operations for businesses. The Shipwire solution solves a major pain point for merchants focused on fast growth: how to scale warehouse and shipping services in line with sales without making a major investment. We intend to make Shipwire a major player in the global movement of goods—with aggregated buying power—by building a world-class shipping and warehousing solution, available on-demand to growing businesses.”

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About Shipwire (http://www.shipwire.com)
Shipwire provides growing e-tailers with e-commerce order fulfillment services powered by a global warehouse network and its Store-Sell-Ship™ platform. Shipwire eliminates the hassle of storage and shipping, so merchants can focus on growth. With warehouses in Los Angeles, Reno, Chicago, Toronto, Vancouver and the UK, Shipwire allows merchants to drastically reduce shipping costs by locating inventory closer to buyers. Usage-based plans start at just $29/month, and enable merchants to locate inventory in all warehouses, with no contract commitments. Shipwire is the only warehouse logistics service that instantly integrates with shopping carts and inventorymanagement systems. Shipwire is developer and partner friendly; learn more about our e-commerce developer affiliate program. Get our outsourced e-commerce order fulfillment guide. For a free trial or more information, contact 1-888-SHIPWIRE or visit http://www.shipwire.com/trial.

Contact: Press (at) shipwire (dot) com

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