eBay and Newell Rubbermaid are the newest investors in Shipwire, an order fulfillment service, the companies announced Wednesday.
Shipwire offers its services in the U.S., Canada and Europe, but officials say the added capital will help Shipwire expand its network of storage and fulfillment warehouses into new countries. Officials add the deal will give more small businesses access to shipping and fulfillment tools that will help them reduce their costs and increase their bottom lines.
"Shipwire built a logistics technology platform that gives any seller access to storage and shipping tools in domestic and international markets, previously only available to the largest merchants," notes Jean-Francois Van Kerckhove, eBay's vice president and the head of Corporate Strategy. "Shipwire's innovative fulfillment solutions will be a boost to growing merchants as they seek new ways to meet the shipping and customer service needs of buyers."
As part of the investment, Van Kerckhove and Amine Khechfe, the founder and general manager of Rubbermaid's DYMO Endicia, will become part of Shipwire's board of directors to represent their respective companies.
Partnering with these companies will help Shipwire increase its prominent position in order fulfillment, notes Damon Schechter, Shipwire's founder and CEO.
"Our new strategic partners bring technology, connections and future marketing channels to help evangelize outsourced shipping, and reinforce Shipwire's position as the leading provider of outsourced shipping services to growing businesses," he says.
This is the second move eBay has made this year regarding order fulfillment. In June, the company announced it would pilot a fulfillment program later this year. It remains to be seen whether the program will leverage Shipwire's services, or be positioned as a competitor.
Terms of the Shipwire investment were not disclosed.
Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.
Other Entries by this Author