


Medium: Opportunities Emerged After Shipitwise.For the time being, it doesn’t look like that. Maybe during the next decade the demand for an instant, dynamic shipping price will surface. Several big names in the industry also reached out to ShipItWise and said that they were, to the very least, 2-5 years too early out on the market with their solution. They only saw ways in which they could lose money.īasically, ShipItWise is the story of a brilliant technological solution that would cut down a lot of costs and money, but where the big companies involved didn’t understand how they would profit from it. In addition to that, the transportation companies didn’t see and profits from this technology. However, the transportation companies involved weren’t eager on jumping on this new technology and would rather prefer to use the old written form that was manually operated. By doing that, freight companies could easily connect with retailers and e-commerce platforms. ShipItWise built an API that would digitalize and analyze analog price lists. Not only that, but the culture in which these freight companies and the overall logistics culture in the world was simply a little too old fashioned. Nobody wants to lose out on a profitable business model, even it might be entering the borders of ethics and morale. “You’re too customer focused” was the standard answer given to ShipItWise. Naturally, the big freight companies weren’t too keen on doing that. By offering their solution, a “fair price” to these smaller companies, the companies would instantly see how they had to pay way more than the big corporate clients. These smaller businesses are charged with way higher profit margins than the big corporate clients. A staggering 80% of these companies’ customers are smaller businesses.


This is what ShipItWise learned “the hard way” when they pitched their services to the big, global freight companies. There are many ways to make money in the world, and one of the best ways to make money is to impose high-profit margins on your customers. There are more than one reason why this startup failed.
