Shiprocket is the fast-growing e-commerce logistics startup. Shiprocket diversifies its revenue streams beyond the traditional shipping services. The company is looking to expand in new areas including marketing, financing, procurement and payments. It has made a strong entry into the shipping market. Praful Poddar, the vice president of products, integrates the strategic decisions taken by Shiprocket to increase profitability and to create value for online sellers.
The Shipping Foundation
In its first step, Shiprocket started with logistic services which are still its ‘mothership’. The company merges service providers like Indian Post, Delhivery, and Ecom Express at the backend to make the direct-to-consumer (D2C) brands send products to their consumers. In 10-15% of the e-commerce operating cost (SMB – small and medium-sized business), shipping costs are paramount to the e-commerce value chain.
Image Source: economictimes.indiatimes
Revenue Diversification
- Marketing Services
- Shiprocket understands marketing which is a game changer when it comes to being a successful online seller. Shiprocket seeks to leverage this approach by providing brand promotion services that are customized for D2C brands.
- The company has just launched a tool for resellers and small brands to implement an influencer marketing program. Influencers can be used by organizations as a way to approach their prospective customers successfully and thus, increase sales.
- Sourcing and Cost of Goods Sold (COGS)
- One of the essentials for ecommerce to grow is pricing quality products at competitive prices. In terms of COGS (20-25%), Shiprocket also works toward empowering sellers by designing the right sourcing strategy for them.
- Though it is inceptive, Shiprocket is mulling over the channels to add value in the process of sourcing and reduce the cost incurred by businesses.
- Payments and Lending
- The other business segment that the company is keen about is the financial services. Through the integration of payment solutions and perhaps a lending service as well, Shiprocket intends to create a comprehensive system for D2C brands.
- A good payment processing and cash availability is a necessity for businesses to develop. Through this entry into this field, Shiprocket is pursuing the mission of assisting sellers all throughout their growth path.
Zomato’s Backing and Growth Trajectory
Shiprocket’s journey over the years is reputed to reach $3 billion in gross merchandise value during 2023-24 fiscal year. The company’s platform comes with 100,000 active sellers on monthly basis with subcategories like beauty and personal care, fashion, apparel, and electronics.
Being a Zomato’s subsidiary, Shiprocket benefits from this strategic cooperation by exploring possible areas of complement and improvement. The access to Zomato knowledge and assets makes Shiprocket take a top position in the ecommerce market.
Conclusion
The moves of Shiprocket beyond shipping also commits the company’s active role in the growing logistics market. Through diversification of revenue channels, the company does not only increase its own profitability but also gives to the online sellers a wide range of services. As Shiprocket embarks on new phases, it keeps its promise of evolving challenges in the ecommerce sector and expanding sales.
The Shiprocket’s smart plan of creating diversified revenue sources shows its flexibility and dedication towards helping the D2C brands. Starting from shipping to marketing, sourcing, financing and all the way to services, Shiprocket is striving to build a comprehensive and all-encompassing ecommerce system.
