Shipping and logistics desperately needs innovation. Unlike other industries, the 200 year old industry has failed to evolve and recognize the growing prominence of small businesses. That is, until one Seattle-based tech start-up entered the scene; putting the needs of small businesses first.
165 billion packages are shipped in the U.S. each year. That’s 5,000 packages per second.
The logistics industry is responsible for getting that mind-boggling number of boxes, packages, and mailers moved from retailers, to delivery drivers, to fulfillment centers, and finally to our doorstep… all within 3-5 business days (or one, if a few extra dollars are spared).
Small businesses are an integral part of this eCommerce cycle, and their contribution to the world of online sales is growing fast. They are also the backbone of most economies and help build an equitable economic system. More small businesses result in more jobs, more innovation and more exports. So it’s encouraging news that in 2021, 5.4 million new business applications were filed as a result of the unforgettable COVID eCommerce boom – the most ever recorded.
The problem is – when it comes to shipping and logistics, small businesses are at a disadvantage.
While the industry was never built for them; it has since failed to recognize the rising power of “the little guys”. This is because the shipping and logistics industry operates on an ‘economies of scale’ model. Corporations enjoy large volume discounts while small businesses are faced with high per-shipment costs.
To make matters worse, small businesses are still recovering from lockdowns, high consumer expectations and are bearing the brunt of supply chain disruptions. Small business owners learnt to adapt and innovate; but rising inflation and a possible recession are threatening recovery efforts, and stymying growth goals.
Shipping is a critical part of running a business but for most small businesses, it remains a painful and costly endeavor. They need the support of the logistics industry like never before. Reasonable demands – such as the
affordable, fast delivery their customers expect- should not feel like a pipe dream.
This paved the way for new entrants, like Sendle, to gather steam. We adopted a customer first scrappy mentality, found an underserved market and utilized existing technology to successfully disrupt an age-old industry. All in the name of small business.
Forcing inefficiencies out of an age-old industry
There are some industries that just won’t get with the times. The shipping and logistics industry is one of them. It’s a traditional industry that hasn’t changed much in 200 years; bound by rigid processes, large-scale networks and investments in legacy technology.
Early on in the game, James Chin Moody, co-founder and CEO of Sendle, recognized that inefficiencies within this industry disadvantaged small businesses, and created a cascade of environmental harm.
Moody founded TuShare, a community platform for reusable goods with a door-to-door delivery company to power it. It cost a lot less than major courier companies, because it leveraged unused capacity on existing courier routes. While sustainability was always in focus (TuShare afterall was built around the idea of keeping useful goods out of landfill), Moody felt a responsibility to address the environmental harm that came with shipping more products. So, TuShare became Sendle, a 100% carbon neutral courier service designed to make shipping simple for small businesses, and to look after the planet at the same time.
First founded in Australia, Sendle took on the monopoly of package delivery, which was the Australia Post. Operating in the US since 2019, Sendle has harnessed technology to out-innovate major companies like FedEx or UPS. Instead of designing an entirely new shipping model, Sendle stitched together a network of its own, connecting small online sellers with unused capacity from major networks. By doing this, Sendle ships every package via the most efficient and affordable route.
Bringing the big shipping advantage to small businesses
In this era of eCommerce, shipping converts customers. Low cost (or lack of), shipping speed and delivery efficiency are key factors that determine whether a business can compete for consumer dollars. The pressure to offer free or low-cost shipping can quickly become yet another overhead expense that cuts into small business’ profit margins.
Sendle recognized that, in order to support small businesses, we had to save them time, money and energy. So we designed a shipping service that directly addressed the pain points of small business owners. While many shippers complicate the process with a slew of accessorial fees that may change, we pass down discounts regardless of volumes shipped, and we offer simple rates with no contracts, subscriptions or hidden fees. Affordable and reliable shipping is now the reason why many small businesses use us in the first place.
We also made it simple to use. Small businesses entrepreneurs are the type that can figure out anything, because they have to. But we know very few of them want to know everything about shipping. We put a great deal of focus on making it simple to book and track deliveries, print shipping labels from home, and request a pickup at no cost to the business owner.
While most industries have undergone major disruption in the last twenty years, the legacy shipping giants haven’t changed much – particularly when it comes to leveling the playing field for small businesses. And there’s never been a more important time to change that. The future is small business, and we as an industry can’t keep focusing on products, services and innovation that benefits only the biggest retail giants, and biggest spenders (or in this case, shippers). At the very core of Sendle’s purpose is to help small businesses thrive. And our entire model is about unlocking the big business advantage, for the small guys.
