Software as a Service (SaaS) has been gaining in popularity for years, but more recently, “logistics as a service” has been the latest craze.
Smaller online retailers are under more and more pressure to streamline their shipping processes—it’s hard to compete when Amazon sells just about everything and often offers free 2 day shipping.
That’s why Shipbeat, a Denmark-based company currently operating in beta, plans to offer an application programming interface (API) that collects the services of leading delivery companies, such as FedEx, DHL and UPS, to collect bids and solve delivery issues for small to medium- sized e-commerce businesses.
By working with multiple delivery companies, Shipbeat allows businesses to allow their customers to choose the best delivery option for them. Simply offering quick shipping isn’t enough in today’s competitive market—customers need flexibility on delivery options, free return shipping and same day or next day options.
When consumers are ordering goods online, it’s not necessarily because of the marketing—it’s because of the shipping options. If your e-tailer can’t offer cheap and fast shipping, consumers will find someone else who does. That’s why Shipbeat’s logistics as a service makes sense. Small and mid-sized businesses are busy building up their clientele—Shipbeat takes the hassle and confusion out of logistics and allows businesses to offer more delivery options than they would be able to on their own.
Shipbeat co-founder and CEO Kenneth Svenningsen stated that delivery is “critical for the most fundamental problem every online shop has.” In fact, as much as 70 percent of prospective customers will create a shopping cart, but then decide not to purchase due to a lack of shipping options.
So far, Shipbeat has raised $1.6 million in investments, which will be used to expand their offering and hire the necessary individuals for e-commerce software integration.