Stamps.com has recently acquired ShipWorks for $22 million in cash.
It’s not surprising that the El Segundo based postage giant chose to invest in the St. Louis-based e-commerce shipping software firm.
According to InternetRetailer.com, U.S. e-commerce grew 13% in 2013 to $262 billion (out of $1.25 trillion globally) and a projection from Forrester Research Inc. claims that In 2017, online spending will reach $370 billion, which represents a nearly 10% compound annual growth rate from 2012.
China’s e-commerce market is growing at a rate of 130% a year.
E commerce shipping is an essential part of the supply chain of e commerce, yet, few e commerce platforms actually get it right.
E commerce platforms are designed to help you sell, not ship, leaving a gap in the supply chain ShipWorks has aimed to fill.
ShipWorks is able to connect to most of the platforms and marketplaces on the market, essentially making the software a one stop shop for online merchants that need to track and ship all sales in a single location.
Companies like SolidCommerce do the same thing, but, require you to sign up for extra services in order to benefit from a shipping suite.
"The acquisition of ShipWorks represents another strategic investment in our high volume and e-commerce shipping business," Ken McBride, Stamps.com's chairman and CEO, said in a statement.
"E-commerce driven package shipping is a very attractive segment within the mailing and shipping space and this acquisition further leverages our ability to accelerate our growth in this area."
What does this acquisition of ShipWorks means for online merchants?
Expect to see a wider offering from both companies.
There might be some discounted postage rates offered by ShipWorks other shipping solutions won’t be able to offer.
I believe this acquisition represents a strategic shift by traditional shipping providers.
More e commerce investments are likely to happen in the near future and bridging the gap between online platforms and the rest of the traditional supply chain will create more investment opportunities for shipping and consolidation providers.
