Despite consumer expectations, not every company has the same supply chain technologies as Amazon or Walmart.
Until now. Former Amazon Prime and Zulily supply chain builders established Shipium in 2019. Jason Murray, co-founder and CEO, spent nearly two decades at Amazon, automating and applying machine learning to solve the “Prime problem” — how to make quick shipping economical.
“It takes a massive tech stack to manage forecasting, network inventory movement, and consumer promises,” Murray told TechCrunch. “To establish a business like Prime, all of those elements must be perfectly coordinated.”
Shipium is building that tech stack so e-commerce retailers may benefit from faster and cheaper shipping. The worldwide e-commerce logistics business is expected to reach $3 trillion by 2028.
Its “secret sauce” is data modelling. Machine learning and logic are used to automate previously fragmented and static judgments, gather information on cheapest and fastest delivery methods, and then offer the optimal outcome for a specific consumer. The startup claims it can cut shipping costs by over 5% and reduce delivery times by several days.
Murray said demand increased when the company obtained $8 million in venture investment last year.
Our platform helps shops who have assets but cannot use them due to a lack of technology. “External causes like COVID forced most shops into reactive mode, but e-commerce is sticking to the next level and everyone is adjusting,” he adds.
The company processed approximately 10 million shipments in the last nine months and expects to process over 50 million by the end of the year. Shipium covers 91 percent of five-digit ZIP codes and all 50 states.
This is the “largest venture-backed Series A for a supply chain software startup,” according to Shipium. Since 2019, the company has raised $38.7 million.
We are constructing a nuanced product, therefore we need to ramp up engineers, says Murray. He’ll join its sales and marketing departments.
Shipium is establishing a network that connects everyone, including the “bazillion new carriers out there,” in a market that is still relatively fragmented.
Because of the intricacy of the programme, we will always be skewed toward product and engineering. “With COVID, we are also leaning in on e-commerce, and it is vital we pursue it quickly. Ultimately, we want our platform to be a simple and useable version for shops.
