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E-commerce boom fuels another startup as Shipium raises $ 8 million to help retailers keep up with Amazon

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E-commerce boom fuels another startup as Shipium raises $ 8 million to help retailers keep up with Amazon
The Shipium team. (Shipium photo)

Online shopping has exploded amid the pandemic, forcing e-commerce companies to increase their compliance capabilities. That’s good news for startups creating ecommerce software like Shipium.

The Seattle startup just raised $ 8 million to help online retailers with technology that improves operations within their fulfillment centers. It is the latest software startup to take advantage of the tailwinds of the e-commerce boom; others from the Seattle region to raise funds over the past year include Flexe, Stackline, Cloth, FlavorCloud, Pipe17, Pandion, SoundCommerce and others.

Shipium, which GeekWire first covered in 2019, is run by two supply chain veterans: Jason murray other Brown mac. Murray spent nearly two decades at Amazon, leading supply chain teams and overseeing thousands of employees as vice president. Brown is also one of Amazon’s first employees (the co-founders started three days apart in 1999) and later joined Zulily, where he was vice president of supply chain and fulfillment software for the Seattle online retailer.

Shipium’s mantra is to help online retailers “fight” against Amazon, which has created customer expectations for delivery times that are difficult to meet for many companies without deep supply chain capabilities. That puts smaller retailers at a disadvantage; Meanwhile, Amazon has grown tremendously during the pandemic, setting revenue and profit records.

Shipium’s API services work with existing systems and help companies make compliance decisions, such as deciding which shipping option is faster or cheaper, or what box size is the most optimal.

“For larger companies, the software that typically addresses those similar decisions includes monolithic ’90s-era software like Oracle or SAP,” Murray said. “They don’t serve the e-commerce industry because the decisions they help make are not thinking about e-commerce outcomes, such as delivering on customer delivery promises.”

The 10-person startup makes money using an infrastructure software-as-a-service model. Shipium has a handful of well-known brands as clients and will process tens of millions of shipments this year. He declined to provide income metrics; the company is not profitable.

“E-commerce companies can offer their customers fast or free shipping and a competitive customer experience by applying modern software to existing assets,” Brown said in a statement. “A Prime experience does not require a complete reconfiguration of physical operations.”

Trilogy Equity Partners led the round. Zulily co-founder Darrell Cavens invested, along with PSL Ventures and Good Friends. Total funding to date is $ 10 million.

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