EP 439: $9m Raised, GoShippo Helps Little Guy Drop Ship 1,000,000+ Packages Per Month Already with CEO Laura Behrens Wu

SaaS Interviews with CEOs, Startups, Founders

Nathan Latka

Ceo, Entrepreneurs, Founders, Software, Business, Entrepreneurship, Saas, Startups

4.6 • 683 Ratings

🗓️ 6 October 2016

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Laura Behrens Wu, the co-founder and CEO of Shippo. Listen as Laura talks about how a laundry list of shipping obstacles with her previous e-commerce store birthed the idea for Shippo.

Famous Five:

Favorite Book? – The Hard Things About Hard Things
What CEO do you follow? – Patrick Collison
Favorite online tool? — Slack

Do you get 8 hours of sleep?— “I wish”
If you could let your 20 year old self know one thing, what would it be? – “Trust that things will turn out right”

Time Stamped Show Notes:

01:45 – Nathan introduces Laura to the show
02:13 – E-commerce business Laura had
- 02:27 – Started at Shopify
- 02:40 – Sourcing unique items from NGO
- 03:07 – Shipping problem
03:32 – Revenue with the e-commerce business
03:50 – Laura was 21 when she started her business
04:13 – Financing with Shippo
- 04:17 – Drop shipping
05:08 – Typical shipping pricing
05:30 – Shippo shipping rates
- 05:58 – Volume metric
- 06:07 – Doing millions of packages a month
06:30 – Negotiation with shipping providers
- 06:44 – Based on projected volumes
07:00 – Shippo is a pay-as-you-go; not SaaS
07:20 – Sample price per package shipped
- 07:30 – What if I’m shipping a 10 lbs. dumbbell?
- 07:44 – “We only provide the software”
08:06 – How Shippo works in an e-commerce website
- 08:10 – Will compare different shipping providers
- 08:30 – Not a standard shipping rate
- 08:47 – How the shipping providers get the package from the seller
09:07 – Why clients use Shippo’s service
09:37 – Shipping providers are not tech company
09:55 – Number of unique customers
10:12 – Average shipping volume per month
10:29 – Memebox
- 11:10 – Nathan’s proposed deal for Shippo and Memebox
11:54 – They raised $9M in 2014
12:20 – Team size
12:50 – Use of the extra money
13:23 – Minimum monthly revenue
13:33 – Upselling
- 13:50 – Shipping insurance
- 14:11 – Tracking as a product
15:28 – Bigger revenue stream
15:37 – $ 7 million in series A round, March 2016
16:00 – How to keep the balance when you have a big account
16:38 – Travel expenses last month
17:25 – Will you sell the business for $ 47 million?
- 17:45 – Ideal exit assuming there’s a good fit
18:03 – Built an app on top of Shopify
18:11 – Connect with Laura through her Twitter, LinkedIn and email
20:00 - The Famous Five

3 Key Points:

Keep your customers updated and excited.
Spend money on the right things and appreciate what you have.
Don’t get upset on your first try – everything falls into place given patience and time.

Resources Mentioned:

Toptal – Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal developers.
Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
Freshbooks – The site Nathan uses to manage his invoices and accounts.
Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
@LauraBehrensWu – Laura’s Twitter handle
LinkedIn – Laura’s LinkedIn account
[email protected] – Laura’s email address
Show Notes provided by Mallard Creatives

Transcript

Click on a timestamp to play from that location

0:00.0	This is the top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.
0:09.0	You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have.
0:16.0	I'm now at $20,000 per talk.
0:18.0	Five and six million.
0:19.0	He is hell-bent on global domination. We just broke our 100,000 unit sold mark Five and six million. He is hell bent on global domination.
0:21.2	We just broke our 100,000 unit soul mark.
0:23.9	And I'm your host, Nathan Latka.
0:28.2	Okay, Top Tribe.
0:29.4	This week's winner of the 100 bucks is Rhett Gillins.
0:33.2	He's in the restaurant industry and he feels stuck.
0:36.2	He wants to start his own software business.
0:37.9	So congratulations, Rhett, for your guys' chance to win $100 every Monday morning.
0:43.2	Simply subscribe to the podcast on iTunes now in order to enter and then text the word Nathan to 3344 to prove that you subscribed.
0:52.6	Folks, many of you heard I made a big league acquisition of a business.
0:56.2	Nathanlaka.com forward slash send later is the name of the business.
1:00.1	And I didn't want to give up equity to a developer because I'm a business guy.
1:03.5	So what I did is I used a website to find a guy named Hee Shaming.
1:08.1	I've paid He over $12,000 to help me build send later and the site that i am using
1:13.8	now is called top do at nathanlaka dot com forward slash t o p t a l i will build send later and do a big
1:21.5	business and i will take it public by the time i turn 30 i'll tell you more later on in the episode
1:25.9	nathan latka here coming up tomorrow morning you're going to learn from Sean Howell.
1:31.0	He did 700 grand in revenue last month via 100,000 people paying him $7 per month.
	...

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