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Industries
Automotive & Transportation
Consumer Software
Company Size
201-500
Company Stage
Late Stage VC
Total Funding
$154.3M
Headquarters
San Francisco, California
Founded
2013
Shippo simplifies the shipping process for ecommerce businesses, marketplaces, and platforms by providing a single API and dashboard that connects to multiple shipping carriers. Users can compare shipping rates, print labels, automate international documents, track shipments, and manage returns all in one place. This integration allows clients to streamline their shipping operations without needing to switch between different services. Unlike many competitors, Shippo focuses on offering a comprehensive solution that works seamlessly with existing ecommerce platforms, making it easier for businesses to manage their logistics. The company's goal is to enhance the shipping experience for its clients, ensuring that they can operate efficiently and effectively in the ecommerce space.
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Total Funding
$154.3M
Below
Industry Average
Funded Over
6 Rounds
Medical, dental, & vision
Take-as-much-as-you-need vacation policy
Flexible work hours
Two week-long company wide shutdowns during summer/winter
3 volunteer days off (VTOs)
WFH stipend
Charity donation match up to $100
Professional & career growth
Individual learning stipend
Personal and focused growth
Company off-sites throughout the year
đŠâđł How we use AI at Tech in Asia, thoughtfully and responsibly.đ§ââď¸ A friendly human may check it before it goes live. More news hereTemu, owned by PDD Holdings, has resumed direct shipments from China to the US. This follows recent advancements in trade negotiations between Washington and Beijing.Some items previously removed from Temuâs US marketplace last month have been reintroduced.A seller from Guangdong said products, including dresses, became available for sale in the US on June 11.However, many items remain offline under Temuâs âfull custodyâ model, where the platform manages logistics, pricing, and tariffs.As of June 14, Temuâs US website featured items shipped directly from China, such as a nylon hiking backpack.This product had been unavailable for reviews between May 7 and June 2 but has now been reinstated.đ Source: South China Morning Postđ§ Food for thought1ď¸âŁ The de minimis roller coaster reshapes cross-border e-commerce economicsTemuâs direct shipping resumption highlights how significantly the de minimis rule influences international e-commerce business models.When the US suspended the $800 duty-free threshold for Chinese imports in May, it fundamentally altered the economics of cross-border e-commerce, forcing platforms like Temu to shift to local fulfillment models to remain competitive 1.This policy reversal comes after Chinese e-commerce retailers faced cost increases of 10-25% across various product categories, significantly impacting their ability to maintain the ultra-low pricing strategy that fueled their rapid US market growth 2.The temporary reinstatement of the de minimis exemption represents a critical lifeline for these platforms, as it allows them to once again ship low-value goods directly from China without incurring duties that would make their business model unsustainable 3.This pattern of regulatory change followed by business model adaptation demonstrates how e-commerce platforms must maintain operational flexibility to navigate unpredictable trade policies, a capability that larger, well-capitalized companies like PDD Holdings (with $364.5 billion in cash reserves) are better positioned to manage 4.2ď¸âŁ PDDâs âfull custodyâ model creates unique tariff vulnerabilityTemuâs struggle with US tariffs reveals a specific vulnerability in its parent companyâs business approach that differs from competitors in cross-border e-commerce.Under PDDâs âfull custodyâ model, the platform assumes responsibility for listings, pricing, logistics, and crucially, tariffsâcreating direct financial exposure to trade policy changes that other marketplace models can pass on to sellers 3.When the de minimis rule was suspended, Temu faced a stark choice: absorb significant cost increases that would undermine its ultra-low price positioning, or dramatically alter its operational model by shifting the tariff burden to merchantsâultimately choosing the latter to preserve margins 2.This strategy shift contributed to PDDâs 47% earnings decline in Q1 2025, demonstrating how deeply trade policies can impact business performance when a company takes on supply chain responsibilities traditionally managed by individual merchants 1.The recent trade developments have allowed Temu to partially revert to its original model, but the episode highlights how PDDâs approachâwhich helped it achieve its impressive 24.63% profit marginâalso creates unique exposures to regulatory shifts compared to traditional marketplace platforms 4.3ď¸âŁ Trade policy whiplash accelerates supply chain regionalizationThe Temu case illustrates a broader trend where unpredictable trade policies are forcing e-commerce businesses to develop regional supply networks rather than relying on direct China-to-consumer models.Despite the current trade tensions easing, experts warn this represents a âcalm before an inevitable e-commerce storm,â with import volumes at major US ports already dropping significantlyâsignaling deeper supply chain restructuring 5.The on-again, off-again nature of tariffs and de minimis rules has driven companies to explore nearshoring and supply chain diversification as strategic imperatives rather than temporary responses, with many businesses stocking up on inventory in anticipation of future policy changes 6.For large platforms like Temu, this has meant developing multi-regional fulfillment capabilitiesâevidenced by their rapid pivot to âlocal warehouseâ models when direct shipping became economically unfeasible 7.The EUâs consideration of similar measures, including a âŹ2 handling fee for low-value packages, signals that this is a global trend that will require e-commerce businesses to maintain parallel supply chain strategies across different regions rather than relying on a single cross-border model 8.Recent Temu developments
Linnworks announces partnership with Shippo to streamline and scale global ecommerce shipping.
By integrating Veho's logistics into Shippo's platform, brands gain access to:
Over 3.4 Million Shippo E-Commerce Orders Per Year Expected to Be Delivered Through VehoNEW YORK, April 1, 2025 /PRNewswire/ -- Veho, the logistics and technology company that operates one of the largest parcel delivery platforms in the U.S., and Shippo, the leading shipping platform for modern e-commerce, today announced the launch of competitively-priced 2-5 day, premium delivery for over 300,000 e-commerce brands
Ecommerce shipping platform Shippo has launched Addresses API, enabling merchants to validate, parse, and store customers' shipping addresses.
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Industries
Automotive & Transportation
Consumer Software
Company Size
201-500
Company Stage
Late Stage VC
Total Funding
$154.3M
Headquarters
San Francisco, California
Founded
2013
Find jobs on Simplify and start your career today