BRIDGEPORT, Conn., Apr. 19, 2021 /PRNewswire-PRWeb/ -- Cahoot, the world's first peer-to-peer eCommerce fulfillment network, announced that it has been named on the Fast Company's Prestigious List of the World's Most Innovative Companies for 2021. Cahoot enables brands and online retailers to affordably provide one-day and two-day delivery nationwide by storing and fulfilling goods for each other.
Fast Company's Most Innovative Companies (MIC) list honors the businesses that have not only found a way to be resilient in the past year but also turned those challenges into impact-making processes. These companies did more than just survive; they thrived—making an impact on their industries and culture as a whole. This year's list features 463 businesses from 29 countries.
"We are honored to be named one of the World's Most Innovative Companies and recognized for our work. We are enabling businesses of any size to affordably offer their customers the same superfast delivery experience as Amazon" said Manish Chowdhary, Founder and CEO of Cahoot.
Like the Airbnb marketplace of homeowners and travelers, the patented Cahoot fulfillment network brings together the collective power of many SMBs and their warehouses to fulfill orders, thus reducing fulfillment costs and expediting delivery. Cahoot's optimization algorithm further analyzes all combinations of warehouses, carriers, and shipping services to find the most affordable and efficient way to deliver orders fast.
With consumers flocking to online shopping in 2020 due to COVID, eCommerce grew an unprecedented 44% year-over-year, nearly three times the historical annual growth. At the height of the pandemic, even Amazon's fulfillment services faltered. Customer orders took almost a month to arrive as warehouses struggled to fulfill orders. Amazon stopped accepting non-essential goods in its warehouses and prioritized its direct sales over those of its marketplace sellers, leaving hundreds of thousands of sellers that rely on its popular fulfillment service (FBA) scrambling for alternatives. Such incidents have caused merchants to always be prepared with a backup provider when they need it.
This eCommerce explosion has led to a shortage in warehouse space, well-priced and available labor, and carrier capacity. Warehouse vacancies reached an all-time low in Q3 2020 while rents were at an all-time high. LinkedIn also reported a surge of 73% job openings for fulfillment workers, the highest among all categories, and wages began creeping up. Moreover, all major carriers, including USPS, increased rates and added surcharges to handle the unprecedented increase in demand. All of this has resulted in much higher operational costs for retailers. And, at a time when most consumers are struggling financially, raising prices is not an option for merchants.
"Traditional solutions do not meet the needs of SMBs - unlike large corporations that have the power to negotiate aggressively with landlords and carriers to stay competitive. With Amazon pushing its popular prime membership program to transition from 2-day free delivery to now 1-day, even the largest retailers are facing logistical challenges. But Cahoot changes all that by intelligently aggregating the power of many," said Chowdhary.
By unlocking previously unavailable warehouse capacity from tens of thousands of merchants across the U.S., Cahoot is transforming eCommerce fulfillment into a new collaborative model that's more efficient. Cahoot's fulfillment model is also environmentally friendly besides scaling up to meet the rising consumer expectations of free and fast delivery. And for the first time, online merchants can monetize their existing warehouse space and labor in a way previously not imagined or possible. "Before Cahoot, we didn't really know how to leverage our extra space and fulfillment capacity. Becoming a Cahoot Fulfillment Partner has been a great way to make extra money without the hassle of becoming a full 3PL. Onboarding was fast and easy; Cahoot software is so efficient that we pick Cahoot orders before our own!" said Robert Hill, CEO of Seismic Audio Speakers.
With Cahoot, merchants can expand to regions previously too far for fast ground shipping and too expensive for expedited air shipping. "My customers now expect free 1-day and 2-day delivery, which is very expensive and difficult to provide. But with Cahoot, I can now offer 1-day delivery in both the East and the West with ground shipping, in addition to my home state of Kentucky," said Darren Somerville of Impact Battery.
By providing fulfillment as a utility-like service as opposed to a competitive advantage previously available only to the largest and highly capitalized corporations, Cahoot aims to fuel even greater innovation - sure to benefit consumers around the world.
"Before Cahoot, we were selling only on Amazon. The inventory restrictions imposed by Amazon FBA were difficult for my business," said Eli Miller, owner of Twinkle Toy. "Cahoot helped us grow by serving customers nationwide across multiple selling channels, including our own website. It's a whole new opportunity that I would never have had without Cahoot."
Cahoot's shipping volume increased five-fold year-over-year in 2020. Many merchants have found success through Cahoot:
- A chocolatier in Brooklyn, NY, added 34% more sales just by outsourcing fulfillment to 2 additional locations.
- A prominent battery merchant in the Midwest maintained their Amazon Seller Fulfilled Prime eligibility by expanding 1-day ground coverage to 45%+ of U.S. consumers.
- Another merchant selling big, bulky products saved 88% on two-day delivery costs and tripled sales in just three weeks.
Fast Company's editors and writers sought out the most groundbreaking businesses across the globe and industries. The World's Most Innovative Companies is Fast Company's signature franchise and one of its most highly anticipated editorial efforts of the year. It provides both a snapshot and a road map for the future of innovation across the most dynamic sectors of the economy.
Cahoot is available for merchants looking to expand their reach for one- and two-day delivery services across all popular selling channels, including Amazon, Walmart, eBay, Shopify, BigCommerce, and more. Merchants can reach a Cahoot fulfillment expert at cahoot.ai or connect with Cahoot on LinkedIn
Cahoot is the world's first peer-to-peer eCommerce fulfillment network that helps online businesses offer nationwide 1-day and 2-day deliveries. Cahoot offers drastically lower fulfillment fees because it enables merchants to store and ship the merchandise for each other. This novel business model also allows merchants to make extra money using their existing warehouse space and personnel.
ABOUT FAST COMPANY
Fast Company is the only media brand fully dedicated to the vital intersection of business, innovation, and design, engaging the most influential leaders, companies, and thinkers on the future of business. Fast Company's Most Innovative Companies issue (March/April 2021) is now available online here, on iTunes, and on newsstands beginning March 16, 2021
Michael McEvoy, Cahoot, +1 (475) 897-7101, [email protected]
Garima Kumar, Cahoot, 2036251111, [email protected]