Online retailers neglect the fulfillment side of the business at their own risk. According to surveys, 38% of customers abandon their order if delivery is expected to take longer than a week, and 69% of consumers are less likely to shop with a retailer if a previous purchase was not delivered within two days of the promised date. That’s where companies like Deliverr come in — they handle shipping logistics for ecommerce businesses around the U.S.
After raising $40 million in venture capital across series A and B funding rounds, Deliverr is setting the stage for growth with $40 million in a series C round led by Activant Capital. The round included participation from 8VC, GLP, and Flexport founder and CEO Ryan Petersen and brings Deliverr’s total capital raised to over $70 million. It comes after a year in which the company increased its customer base by 11 times to “thousands” of merchants and expanded its warehouse footprint by 4 times. Deliverr says half of U.S. residents now live within 100 miles of one of its fulfillment locations.
With the newfound capital, Deliverr plans to advance its AI and machine learning capabilities and build out new shipping programs as it scales its workforce across offices in San Francisco, Chicago, and Toronto. “Fast, affordable delivery requires well-placed fulfillment centers spanning the country, carefully orchestrated logistics, and complex enterprise technology,” wrote the company in a press release. “Amazon has changed the way people shop online. There’s a growing expectation that orders should always arrive at the doorstep in just a few days. While Amazon has excelled at the science behind two-day and next-day delivery, the rest of online retail … has struggled to keep up.”
Deliverr, which was cofounded by former Symphony Commerce colleagues Harish Abbott and Michael Krakaris in 2017, boasts a platform that integrates with retailers’ listing tools and lets managers explore cost previews for each SKU in their catalog. They pick the items they wish to send and follow guides that instruct them on how to ship to Deliverr, which syncs with sales channels so that future orders flow in automatically.
Deliverr’s rates are all-inclusive and ostensibly “competitive” with Amazon’s multi-channel fulfillment — for instance, storing 50 9.2-pound espresso machines would cost around $30.30 a month, and shipping them would be $15.18 per unit. Deliverr says it “intelligently” distributes inventory across locations, ensuring at least 95% of buyers on Walmart, eBay, Amazon, and elsewhere see item listings with fast shipping tags.
Deliverr supports existing ecommerce selling platforms, including ChannelAdvisor, Sellbrite, Zentail, GeekSeller, SellerActive, Shopify, Skubana, Listing Mirror, eComdash, and SellerCloud.
“We created Deliverr to bring Amazon-like fulfillment capabilities to online retailers of any size, helping them meet the high expectations of today’s shopper and better compete with other retailers,” continued Deliverr. “While we still have a lot of work to do, we’re excited about the early progress we’ve made and hope you’ll stay tuned for what comes next.”
The ecommerce logistics market is crammed with companies specializing in every step of the fulfillment process, from freight management and delivery to payment processing. There’s Bringg and Roadie, which recently raised tens of millions of dollars for last-mile shipping services, and well-funded microfulfillment startups like Chaldal, Fabric, and Attobotics. That’s not to mention companies like Convoy, Transfix, and Loadsmart, which are raking in dough for products that juggle long-haul delivery planning.