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Chicago, IL
Dhruv Saxena
Home  >  Companies  >  ShipBob
ShipBob is a multi-carrier fulfillment solution for ecommerce brands.







Growth Rate (y/y)








Sacra estimates that ShipBob generated $500M of revenue in 2023, up 43% from $350M in 2022, largely off the growth in gross merchandise value (GMV) via their deal with TikTok Shop U.S., which is projecting sales of $17.5B for 2024.

As ShipBob expanded from 4 warehouses in 2017 to 50 as of 2024, they went from a B2B Shyp to the fulfillment arm of Shopify, helping merchants launch next- and 2-day shipping to go up against Amazon—they benefited massively as Shopify grew revenue 15x from 2015 to 2020, from $200M to $3B.



In 2013, Shyp hit 50-100% month-over-month growth for its service that picked up your packages within 20 minutes and shipped them for a flat $5 fee, but it failed to scale because consumers ship irregularly and in low volumes.

Shyp partnered with eBay in 2016 as part of a pivot to B2B, with revenue per transaction increasing by 150% as a result, but the lack of runway left from their first ~3 years losing money on every B2C order meant they had to shut their doors in 2018.

That pattern of product-market fit emerged again with ShipBob, which launched in 2015 to bring scheduled package pickup and shipping to SMBs selling across eBay, Shopify and Etsy, monetizing by charging $5 per package and hitting $1M of revenue, growing 35-40% MoM, after 9 months

By focusing on businesses with predictable shipping needs and relying on scheduled pickups, ShipBob gained control over their unit economics, paving the way for their expansion from a few urban centers to the entire country.

Today, ShipBob offers services like two-day shipping, real-time tracking, inventory management, and analytics. It operates a global logistics network with 50+ fulfillment centers across 5 countries which it either owns or contracts.

Business Model

ShipBob operates on a pricing model that includes several components tailored to accommodate clients shipping anywhere from 1 to 400 items per month. The pricing structure consists of the following key elements

Inventory Reception Fee: $25 for the initial two hours and $40 per hour beyond that timeframe.

Warehousing Charge: $40 per pallet, $10 per shelf, and $5 per bin monthly.

Order Fulfillment Charge: This includes expenses for packaging, labor, and shipping costs, with the exact cost varying based on factors like weight and dimensions.

ShipBob's Growth Plan, designed for startups and companies shipping under 400 orders per month, has a minimum spend requirement of $275 USD per month.



Across third-party logistics, a new competitive set is emerging as freight providers like Flexport, multicarrier fulfillment companies like ShipBob, ShipMonk and Red Stag, and APIs like EasyPost and Shippo converge on the vision of end-to-end ecommerce logistics.

Traditional carriers like DHL and FedEx are now building their own end-to-end ecommerce fulfillment platforms, looking to eat up the entire stack from order management to last-mile delivery.

TAM Expansion

The upside case for ShipBob lies in indexing on and facilitating the growth of non-Amazon ecommerce GMV—across ecommerce platforms like Shopify, social superplatforms like TikTok and big box retailers like Target—which hit $3.2T in 2023, up nearly 4%, with ecommerce as a whole going from 14.7% of all retail sales to 15.4%.

What ShipBob is building is the counterpoint to Supply Chain by Amazon, the new home of Amazon's $34B/year third-party seller services business as they look to eat up all of ecommerce, from discovery to distribution to delivery.


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