Seattle, WA (PRWEB) April 18, 2011
Most small and medium-sized businesses (SMBs) pay full retail prices to parcel delivery goliaths FedEx and UPS. Up-start EquaShip positions itself as David to the goliath twins, offering “big shipper discounts for the rest of us.” SMB’s often pay 2-4 times higher prices, get inferior customer service and must have all their parcels ready to go several hours earlier than larger shippers do. With SMBs’ limited buying leverage they are literally subsidizing larger competitors’ shipping discounts, only to find themselves having to compete with these competitors’ increasingly popular free shipping offers.
EquaShip will be available for shippers to use on both http://www.EquaShip.com, as well as inside popular electronic storefront software and order management platforms used by e-tailers, including millions of small e-Bay and Amazon stores. Users can find out more and sign-up for launch notification on the EquaShip website.
EquaShip employs the same behind the scene reliable carriers that mega-shippers like Amazon use in their hyper-efficient transportation networks. These carriers generally only work with larger shippers who can fill trailer loads of parcels daily, and are virtually unknown to SMB shippers that send fewer than a few hundred packages a day. EquaShip’s carriers have fundamentally lower costs than UPS or FedEx while providing superior delivery performance, especially in the fast-growing segment of B2C e-commerce shipments. By aggregating SMB shippers EquaShip offers carriers profitable incremental volume from customers they otherwise would have no way of reaching, with EquaShip handling all frontline customer service, payment processing and “first mile aggregation” of parcels.
EquaShip is also building an extensive nationwide network of drop-off locations with major-brand retail chains that see the new parcel carrier driving significant foot traffic through their doors.
Serial entrepreneur and the focus of the TV documentary Start-Up Junkies, CEO Ron Wiener said, “For decades, catalogs - and in more recent times, ecommerce sellers - relied on the markup made on shipping fees to multiply their entire net profit for the year. 25 years ago no shipper ever got a discount from FedEx or UPS. Those days are gone. Since then these behemoths have been in a race to the bottom giving away discounts of 75% or more to win accounts like Amazon, while consistently raising prices for SMB shippers by 7% per year to compensate. It is forcing many small e-tailers out of business. We saw the opportunity to build a new kind of parcel carrier focused primarily on SMB shippers, without taking on enterprise shippers that would have to be subsidized by the little guys.”
EquaShip Chief Marketing Officer, Josh Leichtung said, “Free shipping has been the most powerful order incentive created, and accounts for more than half of online orders today. EquaShip gives SMBs the magic slingshot to combat the goliaths’ outrageously high prices and compete with larger retailers on a more level playing field.” Leichtung is also the Publisher of http://www.eShippingNews.com, a market analysts’ site which tracks trends at the intersection of ecommerce and shipping.
Wiener added, “UPS’s and FedEx’s reputations have been sullied by recent DOJ investigations into the duopoly’s alleged anti-competitive behavior. This finally comes after many years of UPS and FedEx moving in lock-step on sharp retail price increases and the creation of nearly 100 new ‘assessorial fees’ that shippers find exasperating and confusing. Mounting assessorial fees now average more than 24% of the average shipper’s bill, having become these two carrier’s favorite method of passing along hidden price increases. In researching the market demand for a 4th parcel carrier we heard a repeated cry from highly margin-sensitive e-commerce sellers in particular for equalizing the disparity in their shipping costs, and for real pricing transparency.”
# # #