Shyp is continuing with its efforts to make investments in the business space with the launch of discount pricing. With this, merchants can now receive up to 15 percent off their monthly shipping volume on top of the best-available rate that the service provides through its price comparison tool.
In addition, Shyp has also eliminated a policy that limited it to 20 items per pickup. Starting today, businesses can request larger quantity items to be shipped, but only through scheduled pickups.
When it launched, Shyp initially started out with a focus on consumers and sought to create what it called an unbelievable experience for them. Company chief executive Kevin Gibbon defined it as one of the “most underserved” markets, but it was always the intention to eventually work with small, medium, and larger businesses. The introduction of discount pricing is one step in a long process to woo more merchants, especially because price is considered to be a driving factor in deciding who businesses use for shipping.
Merchants that have a monthly shipping volume of more than 20 items will receive a 5 percent discount, while those with more than 50 get 10 percent. To receive 15 percent, Shyp will have to manage deliveries for more than 300 items. There’s also a tier for those shipping more than 1,000 items monthly, which the company will provide custom pricing for.
When used, it’ll provide merchants with the best carrier based on the item and destination, offering a price comparison that is pretty unique to Shyp. It’s this technology along with the discounts that Gibbon hopes will accelerate on-boarding of ecommerce sellers and small businesses.
While the pricing model may be appealing to businesses, Gibbon has no reservation that Shyp’s job is done. In fact, he shared that other improvements are in the works, such as making the service accessible on the desktop — something that merchants likely prefer over a mobile app; development of an API; and additional third-party integrations.
Gibbon declined to disclose how many sellers are on the Shyp platform, but said that it has “tens of thousands” of business customers registered. In addition, half of the company’s revenue comes from ecommerce merchants, which constitutes a “small segment” of its customer base, so it’s apparent why it is investing so heavily in the business space.
As part of its drive to be the shipping logistics platform of choice for sellers, Shyp is has removed a barrier that prevented businesses from fulfilling large quantity of items. Before today, there was a 20 item limit for pickup, which Gibbon attributed to the manual tracking process which was in place — every item had bags that needed to be scanned which was time-consuming. Now bags are provided directly to merchants so they can handle the fulfillment process themselves before Shyp picks them up, thereby enabling more items to be shipped. However, this is only available through the company’s scheduled pickup option.
Just like with Uber, Shyp sees itself more as a facilitator of behind-the-scenes shipping. Consumers find the service useful because of its white glove-like offering, but the true value of the company will likely come through on the seller side and discount pricing is only the start in how Shyp thinks it can become the “Kayak for shipping.” It’s already started with its eBay integration where it’ll provide shipping services for merchants on the platform.
It has seen the fruits of its efforts, since it’s also now making itself available in 21 new zip codes in San Francisco, Chicago, Los Angeles, and New York. Gibbon thinks Shyp will draw interest among small businesses because dealing with fulfillment is a big pain point for them. “For us, to figure out the packaging and shipping is easier to sell [to the merchant]. But going into a large enterprise, they already have the fulfillment and the larger staff, so the value isn’t as great. We’re best positioned to go after the [small- to medium-sized businesses] first and then figure out how to grow up market,” he said.