{"id":1475,"date":"2020-05-29T15:27:24","date_gmt":"2020-05-29T20:27:24","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/shipbob-six-year-anniversary\/"},"modified":"2025-09-27T18:47:21","modified_gmt":"2025-09-27T18:47:21","slug":"shipbob-six-year-anniversary","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/shipbob-six-year-anniversary\/","title":{"rendered":"How ShipBob Has Evolved Over the Last Six Years"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

Looking back at the first five years<\/a><\/p>\n\n\n\n

Always growing, always improving<\/a><\/p>\n\n\n\n

What COVID-19 taught us as a company<\/a><\/p>\n\n\n\n

Scaling while staying true to our mission<\/a><\/p>\n<\/div>\n\n\n\n

ShipBob\u2019s CEO and Co-Founder Dhruv Saxena and Chief Logistics Officer Todd Bills joined us this week for Episode 10 of our \u201cMoving Your Business Forward\u201d weekly webinar series. Dhruv reflected on how ShipBob got started and where we\u2019re heading. Todd offered insight into what it takes to build an efficient fulfilment infrastructure, and how it\u2019s always evolving. <\/span><\/p>\n\n\n\n

The webinar attendees (ecommerce owners and operators) asked some very good questions that made ShipBob think back on the good and the bad, sharing both successes and the mistakes we\u2019ve made along the way. <\/span><\/p>\n\n\n\n

Click below to watch the full episode:<\/span><\/p>\n\n\n\n

Here are some of the biggest highlights:<\/p>\n\n\n\n

Looking back at the first five years<\/h2>\n\n\n\n

ShipBob is celebrating its sixth anniversary next week. During the first five years, ShipBob\u2019s founders, Dhruv Saxena and Divey Gulati, focused their time and energy into building a foundation. They grew up in India together and came to the United States in 2007, both graduating with a degree in engineering. As engineers, they\u2019re always looking for ways to automate pretty much anything. <\/span><\/p>\n\n\n\n

They started a few ecommerce companies together and, like many of our merchants have experienced, found themselves standing in line at the post office in the Willis Tower in Chicago with a load of orders to ship. <\/span><\/p>\n\n\n\n

Dhruv and Divey noticed a massive gap in fulfilment services for direct-to-consumer brands, so they started asking other people in line at the post office two questions:<\/span><\/p>\n\n\n\n

  1. If there was a service that would take care of fulfilment for you, would you stop coming to the post office? <\/span><\/li>
  2. How much would you be willing to pay for fulfilment services?<\/span><\/li><\/ol>\n\n\n\n

    Based on the responses, it was clear how massive the problem was.  <\/span><\/p>\n\n\n\n

    What ecommerce brands often don\u2019t realize is putting fulfilment infrastructure in place is expensive, and there\u2019s a lot more to it than packing boxes and shipping orders. <\/span><\/p>\n\n\n\n

    Between racking, <\/span>managing inventory<\/span><\/a>, and investing in equipment, every time you reach higher order volumes, the <\/span>cost per order<\/span><\/a> increases. It\u2019s not uncommon for brands to miscalculate how much it\u2019s going to cost them to do it all themselves \u2014 and it\u2019s not just money, it\u2019s time too. <\/span><\/p>\n\n\n\n

    We were accepted into the <\/span>Y-Combinator<\/span><\/a> program, completed it in Spring 2014, and brought our idea of building a fulfilment service for growing <\/span>direct-to-consumer brands<\/span><\/a> to life. <\/span><\/p>\n\n\n\n

    Our goal was (and still is) to help ecommerce brands of all sizes be successful online with access to a fulfilment infrastructure that allows them to \u201cdo it themselves\u201d while saving on costs, time, and energy. <\/span><\/p>\n\n\n\n

    DTC brands shouldn\u2019t have to build the fulfilment infrastructure themselves \u2014 that\u2019s why we continuously work on building and expanding the infrastructure that works for all ecommerce brands. <\/span><\/p>\n\n\n\n

    \n

    \u201cWe want to be the de facto standard of shipping and logistics for ecommerce\u201d <\/span><\/i><\/p>\n\n\n\n

    Dhruv Saxena, CEO and Co-Founder of ShipBob <\/span><\/p>\n<\/blockquote>\n\n\n\n

    Soon after ShipBob opened its first Chicago fulfilment centre, Dhruv and his small team found a nice-looking location in Brooklyn, which they initially thought would be perfect due it its close proximity to so many New Yorkers.<\/span><\/p>\n\n\n\n

    Looking back, it probably wasn\u2019t the best idea to sign a multi-year lease on the fifth floor with an elevator that could only hold one palette at a time, but it got the company to where it is today. <\/span><\/p>\n\n\n\n

    Always growing, always improving<\/h2>\n\n\n\n

    We\u2019re constantly evaluating our efficiencies. Our focus is on reducing the variable cost per order (VCPO), which we report on each month so our entire team has insight into it. We don\u2019t focus on what fulfilment centres<\/a> are the most efficient but rather learn from each of our locations so we can collectively get better and be more efficient. <\/span><\/p>\n\n\n\n

    \n

    \u201cOur goal is to help control our costs to deliver a better service and full stack for our merchants. We know where we play really well, where to be cost-effective, and we\u2019re transparent on where we need to make improvements.\u201d <\/span><\/i><\/p>\n\n\n\n

    Todd Bills, Chief Logistics Officer at ShipBob<\/span><\/p>\n<\/blockquote>\n\n\n\n

    The benefit of being a tech-enabled fulfilment provider is having access to data. One way we use data is to identify where packages across our network are being shipped. This allows us to make better decisions on where our next fulfilment centre location should be, which ultimately reduces average <\/span>shipping zones<\/span><\/a>, <\/span>shipping costs<\/span><\/a>, and transit times for our customers.  <\/span><\/p>\n\n\n\n

    Ten fulfilment centre locations<\/a> later, thousands of <\/span>ShipBob customers<\/span><\/a>, millions of orders being shipped each month, and a team of extraordinary employees, our team is incredibly grateful for everyone involved in building an amazing company that merchants want to partner with and employees want to work for. <\/span><\/p>\n\n\n\n

    What COVID-19 taught us as a company<\/h2>\n\n\n\n

    \"\"<\/p>\n\n\n\n

    You really don\u2019t know how strong your team is until you go through something significant like a global pandemic. We\u2019ve taken the pandemic very seriously from the beginning, from ordering our employees in our Chicago headquarters to work from home in mid-March to being proactive and beginning fulfilment centre contingency planning back in February. <\/span><\/p>\n\n\n\n

    Our fulfilment centre leaders and associates have put in the extra time to prepare, change processes, and problem solve on how to stay fully operational while staying safe. <\/span><\/p>\n\n\n\n

    We continue to do everything we can to make our buildings safe and keep our staff safe, we continue to require PPE for all staff (as we have for the past nine weeks), conduct heightened cleaning, and even require PPE for all courier partners in our yards who are not allowed in the buildings.<\/span><\/p>\n\n\n\n

    The last several months have proved that much of the hard work in the last six years is truly paying off. During this time, we\u2019ve also grown and expanded, seeing order volume increases each week, greater than what we handled in peak season 2019 when we had months to plan for it. <\/span><\/p>\n\n\n\n

    In this time, we\u2019ve been able to hire over 150 people and add more shifts, and we plan to hire another 100. Maneuvering through this challenging situation while being able to thrive, adapt, and grow has been a continuous learning lesson. <\/span><\/p>\n\n\n\n

    One of the many benefits of splitting inventory across multiple ShipBob fulfilment centres is that if one fulfilment location needs to shut down for any reason, orders can be fulfilled by a secondary location. It requires more cost upfront but is often outweighed by servicing the end customer by getting the packaged shipped and delivered on time. <\/span><\/p>\n\n\n\n

    We listened closely to what our merchants\u2019 challenged and what they needed during COVID-19 and our focus was to fully support them in however way we can during these trying times. We continue to actively <\/span>communicate with all stakeholders<\/span><\/a>, keeping them informed throughout COVID-19, from prioritizing essential products to courier updates and delays. <\/span><\/p>\n\n\n\n

    \"\"<\/p>\n\n\n\n

    We came together to help the entire ecommerce industry during these times, promoting <\/span>COVID-19 resources<\/span><\/a>, aggregating ecommerce sales trends data for merchants, and launching the <\/span>COVID-19 advice<\/span><\/a> webinar series. <\/span><\/p>\n\n\n\n

    It also led us to launch the ShipBob Giving Fund that supports our fulfilment centre employees during hardships, which will continue to be an active funding source. <\/span><\/p>\n\n\n\n

    All these efforts factored into our full <\/span>business continuity plan<\/span><\/a> that would have never been possible without the perseverance of our team.<\/span><\/p>\n\n\n\n

    \n

    \u201cWe are so thankful to our team in the fulfilment centres who are risking their lives and the health of their families to support our thousands of merchants, their tens of thousands of employees, and the millions of people across the world who are receiving these essentials and other items from your stores.\u201d<\/span><\/i><\/p>\n\n\n\n

    Dhruv Saxena, Co-Founder and CEO of ShipBob (an expert from here<\/a><\/span>)<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n

    Scaling while staying true to our mission<\/h2>\n\n\n\n

    \"shipbob<\/p>\n\n\n\n

    ShipBob is heading into an exciting new chapter, focusing on how to scale without compromising today\u2019s merchant experience. The first several fulfilment centre locations were owned and operated by us, and the next six are owned by us but still utilise our proprietary technology, which has allowed ShipBob to expand our capabilities without losing sight of what makes ShipBob a premium shipping<\/a> and fulfilment service. <\/span><\/p>\n\n\n\n

    \n

    \u201cIf you\u2019re an ecommerce brand, my advice to you is this: Keep at it! Even if it gets hard. This is a massive space. Especially during the early stages, don\u2019t give up.\u201d<\/span><\/i><\/p>\n\n\n\n

    Dhruv Saxena, Co-Founder and CEO of ShipBob <\/span><\/p>\n<\/blockquote>\n\n\n\n

    Our merchants can distribute inventory<\/a> across multiple locations in the US, as well as in our <\/span>international fulfilment centre locations<\/span><\/a> (Australia, Canada, and Europe), and still track the entire fulfilment process from a single dashboard.<\/span><\/p>\n\n\n\n

    No matter how much we grow and scale, we always keep our customers in mind \u2014 making sure that they have what they need to scale their business, all from launching new integrations to new fulfilment locations. <\/span><\/p>\n\n\n\n

    Request a Fulfilment Quote<\/strong><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

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