A weekly podcast with the latest e-commerce news and events. Episode 166 is an interview from eTail West with Shipsi CEO and Co-Founder, Chelsie Lee.
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Chelsie Lee (@ChelsieAnnLee) is the CEO and Co-Founder of Shipsi, a software solution for aggregating and managing last mile delivery services.
In this interview, we cover a wide range of topics including last mile solutions, curbside pickup versus delivery, changing customer behaviors, and the Amazon effect.
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Episode 166 of the Jason & Scot show was recorded on Wednesday, February 20, 2019 from the eTail West tradeshow in Palm Desert, CA.
Join your hosts Jason “Retailgeek” Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
Transcript
Jason:
[0:24] Welcome to the Jason and Scott show this episode is being recorded on Wednesday February 20th 2019 live from the etail West Trade Show here in sunny Palm Desert,
I’m your host Jason retailgeek Goldberg and unfortunately due to travel issues Scott didn’t make it to the show so you get twice the Jason for half the usual cost,
but to make up for that we have a great guest listening to the show will know that one of the topics we spent a lot of time talking about his last mile delivery so we’re particularly excited to have on the show Chelsea Lee and co-founder and CEO of shipsi,
a company that helps retailers saw that exact challenge Chelsea who welcome to the show.
Chelsie:
[1:04] Thank you so much happy to be here.
Jason:
[1:08] Chelsie as a long time listener of the show you’ll know we always like to think that getting started by having to listen to get a little bit of background about how you came to your world so can you tell us a little bit about your background.
Chelsie:
[1:19] Absolutely I am a proud Minnesota native.
I grew up hunting and fishing with five uncle’s which is probably not as common as most founders.
Spend some time in Europe New York now reside in LA,
and spend a lot of time in corporate retail and then working in technology and Technology Consulting anyting EDI Erp and VI point-of-sale analytics was.
Was my passion for a long time and then,
I think it all started though actually my grandfather’s gun shop supply and demand and the fact that you can negotiate anything he wanted during gun season was was also really entertaining for me.
Jason:
[2:01] That’s awesome I’m a big family of a big fan of a family retail business as I can from a retail family as well I’m sorry I forgot that he missed you because he died r p e p o s are some of his favorite acronyms,
and his listeners will know I sort of think of Minnesota as their retail capital of the us having.
And a lot of time at Target in Best Buy a lot of lot of great retail in a lot of great retail people come from that region,
so what’s taking the ship see a little bit can you tell us how you came up with the idea.
Chelsie:
[2:37] So it originated because I was getting really frustrated that any brand that I was working with from Bob’s Bait shop and Nike everything in between they always have his big big Dark Cloud of Amazon.
So maybe not New York recently but yeah yeah.
It really stem from this frustration so I wanted to figure out how I could solve for it so I considered working for a private Equity Firm.
So I called my friend and a mentor of mine been who is now my co-founder and said what do you think you think I would like it.
And he’s a Serial entrepreneur angel investor and said,
I think you would like it fine but I think you should look at the side project I’m working on and it’s it’s called the shipsi and I said it sounds like Logistics I’m not into that you don’t want me and,
a solution that was originally made for traditional Logistics I looked at it and,
the Ben what are you doing this is the front of a nanny cam so we flipped it inside out and upside down and that’s Gypsy today.
Jason:
[3:46] Very cool give us a like what is the bullet like how does shipsi work.
Chelsie:
[3:52] Yeah so when I was speaking with Ben originally and we started toying around with this idea Banda Manatee cam,
I called every friends and old client in my retail networking and said,
if you could deliver within a couple of hours without changing any of your existing business systems and not pay for shipping,
is that something that you would find Value in would you invest in something like that would not fall in line with your priorities this year,
and it was really hard to find someone who said no.
Jason:
[4:27] It’s always a good problem for incubating a good thing to happen when you’re getting a new idea and so in my mind.
Unlocking all this inventory that a retailer had an individual store that can only serve visitors of that store and essentially turning that inventory into e-commerce in the far is it can be.
Chelsie:
[4:49] So we’re in a great an additional shipping option or add an additional option at checkout in any existing e-comm website,
and then we aggregate multiple last mile delivery networks on the back end so that the consumer is completely dazzled and gets the best price for it,
and then we also utilize existing infrastructure as you mentioned of stores warehouses distribution centers to basically open up an instant shipping option in whatever City those things are in.
Jason:
[5:19] Great and so I’m going to dive into the details in just a second but before I do I mention we’re etail West you were just on a panel that you tell West calls a tech tank and it was kind of like
you each got the picture businesses in the audience voted on the the business they would most likely want to adopt,
and how did you do.
Chelsie:
[5:42] Well it was an amazing thank you for all of my voters I swept it I would say so that the question or the what they were judging and I believe it was something like.
Which of these companies would you invest in within the next 12 to 24 months or seriously Implement within your business and I had over half of the votes in the entire room out of the the panels.
It’s definitely top-of-mind as you know we come in last my alarms are only a Hot Topic.
Jason:
[6:10] For sure for sure tank so congratulations on that wear with the inaugural Tech tank.
Chelsie:
[6:15] Yes thank you thank you.
Jason:
[6:17] Very exciting.
Chelsie:
[6:18] I plan to that so that I we could finish that before coming on here.
Jason:
[6:21] Yeah I didn’t want to spoil it but like I would have only invited you on the show because I knew for a fact that you are going to win.
Chelsie:
[6:27] I knew it yeah so where’s my tiara do I get a tiara crown or some kind of trucker hat Maybe.
Jason:
[6:34] So you know it said I was going to bring it to Yara and some of your people said that you just ordinarily wear a tiara and so it seemed like it would be redundant.
Chelsie:
[6:43] Depends on the day multiple hats yes.
Jason:
[6:46] That is that the job of a Founder rarely is one of those hats that Tiara but yeah.
So let’s dive into it a little bit so you’re solving Last Mile I think.
You know what I just heard that I would imagine you either hiring a bunch of people to deliver packages or maybe you’re on demand system where you’re using like gig workers to deliver packages is that what you’re doing.
Chelsie:
[7:10] No so we have the beauty of learning from a lot of other mistakes that last mile networks who are very successful now have already made,
so because they figured out a lot of heavy lifting I think for us in the beginning we partner with last mile delivery Network so a big piece of it is,
we don’t own the car is the warehouse is the merchandise nor employee kind of anyone within that,
we just you know basically are the master aggregator Wrangler coordinator.
And a really critical piece in that is that we set up different business rules are parameters to make the option up here or not appear so we don’t touch the traditional Logistics,
but let’s say a driver isn’t available or the merchandise isn’t available we build all of these profile and business rules or what we call a PBR,
behind the scenes so that the consumer sees the option and we can ensure that they get what they need.
Jason:
[8:04] God you you have to be careful cuz there’s a lot of hunting stores a PBR mean something totally different.
Chelsie:
[8:07] Yes.
Jason:
[8:10] So so let me make sure I have this right so I’m I’m a hunting dog, I have a website and I ship stuff out of my warehouse via UPS or the mail and maybe I have a store then my loyal customers come in and Shop.
You add the option to my website to say deliver same-day and then the customer pics that and then.
Chelsie:
[8:32] I’m going to make a slight correction on that it’s generally within an hour or two hours at most.
Jason:
[8:38] Even better okay so deliver in an hour as I’m about to go on a hunting trip and you’ve got that new training collar I need for my hunting dog,
so I clicked on that one hour delivery and then your software is deciding who the best,
Last Mile fulfillment partner is in you’re going to send that order to that fulfillment partner,
they’re going to fill that order you’re going to collect all the data about about delivery and all that stuff and feed that back into the Retailer’s.
Chelsie:
[9:06] Exactly and that’s a big piece of it that often.
You know it’s cool that we can ship something within an hour from point A to point B but the real value that I see especially in a couple years is having that,
Predictive Analytics on the on-demand market and to be able to feed that back to our Retail Partners so that they can in turn feed that into the rest of their supply chain.
Jason:
[9:29] So you’re sort of the middle layer between the last mile companies in the retailer and are there any particular last-mile companies that you tend to partner with other that westerners would be familiar with.
Chelsie:
[9:40] Oh yeah you know it ranges some of them are small Courier Services some of them are the Postmates of the world and it’s it’s just been amazing to see
us fueling every party involved with with more Revenue we will be making a big announcement in the upcoming months about another,
why is my old partner on major one as well today we’ve accessed over 500 cities across the US and by the end of the year we anticipate having,
over a million drivers through those driver networks to be available for shipsi deliveries.
Jason:
[10:12] That’s awesome so so pretty much a national reach at this point the are there any particular categories that you’re finding our are lending themselves to one hour delivery like what kind of retailer is best suited for the service.
Chelsie:
[10:25] Haha that’s a good question I wish the data skewed one way or the other would help our sales team know what to go after a little bit more but.
It’s really diverse I would say the younger women demographic.
Works a little bit is very slightly skewed some of the luxuries skewed but then there’s also things like a phone charger and birthday candles which has been really interesting to see there’s not a clearly defined,
category or vertical,
I should I’m not surprised anymore by our new customers because our first time customers were a men’s clothing women’s clothing footwear apparel accessories a sex toy company I mean.
Everything so to answer your question no we haven’t seen as a friend or vertical yet.
Jason:
[11:21] Awesome. You can’t go wrong with a vices I feel like everyone you know once devices delivered more quickly in.
Chelsie:
[11:27] Absolutely.
Jason:
[11:28] So chocolate in in alcohol might be good although there’s some complexities in the alcohol one.
So one of the topic categories we talked a lot and last mile delivery lately is around grocery are you doing anything in grocery or is that something you’re you’re thinking about.
Chelsie:
[11:46] So we have a little bit and grocery some more specialty gift food items such as edible which is a delicious edible cookie dough if you haven’t tried it,
and we.
Jason:
[11:56] Speaking of vices.
Chelsie:
[11:57] Yes he has absolutely so we are really focused on retail we’re actually really.
Making it a point to stick away from grocery but if you look at some of the trends that’s happening in grocery right now it is,
is amazing I think something like a Business Insider just recently published a report on 35% growth in grocery and that,
consumers wanted you know 69% of them wanted home delivery versus 31 or curbside and pick up.
So I see those Trends and Retail is is trying to catch up but we need to go fast.
Jason:
[12:38] Yeah I know for sure I should have asked you a question earlier but this will open up to my next set of questions,
so you’re you’re helping collect that order in your you’re getting that last mile person to show up in the store in in your model is the the retailer most responsible for picking the order in the store and having it ready for the,
the delivery person or the delivery person like going into the store and picking stuff off the shelf.
Chelsie:
[13:04] I have a delivery person is not picking things off of the Shelf,
the retailer either picks it up or there’s a dedicated place for shipsi delivery is just like there would be for a 7 to 10 day or two to four day whatever might be in the warehouse,
and then with some of our larger Brands we have a shipsi person that we have hired to say,
we will get you guys set up if it’s if the demand is so high or maybe in the first couple months will send someone from the ships that you to go work with your team in the store Warehouse to get them familiar and then we also have a,
customer service layer that is absolutely critical so that we can be one point of contact for the consumer for the retailer for the warehouse for the driver so that.
The retailer doesn’t have to deal with some of those things in the consumer gets what they need and feel confident about it.
Someone last week actually referred to us as The Wizard of Oz because they didn’t even know is a retail customer of ours and.
So many things that we do the retailer doesn’t know about it so every 10 seconds word checking in order to make sure that everything is okay and when it’s not we catch it.
99.5% of the time before the retailer or the consumer even know.
Jason:
[14:18] Got an internet metaphor they didn’t want to even know what’s behind the curtain they just wanted to see the magic so.
The whole curbside versus delivery thing like I feel like there is in the abstract there’s a consumer preference.
But I do like price also comes into play in that so like presumably the more you have to charge for home delivery,
the more likely a customer is to opt for the convenience of curbside pickup versus delivery so I would assume if you can get the price low enough or at least the price as perceived by the consumer,
then do every it heavily skewed towards delivery but in places where the unit economics don’t work for that like it might for a real grocery store,
side becomes more popular.
Chelsie:
[15:05] Absolutely there’s actually two points for our business and why that matters one is because we’re aggregating multiple Last Mile networks and Courier Services,
we’ve seen really drastic scenarios where maybe one specific last-mile Network says that it’s going to be $51 and then another one picks it up for maybe $6 is a really really bad,
differences in that so one piece of it is the aggregation and the our ability to do that II is that,
the retailer is no longer responsible to pay 12 bucks to drop it off to FedEx or USPS because the consumer sees exactly how much it is,
so we have a couple of retailers right now that we’re playing with the pricing and they say well I already have $12 allocated in my p&l for FedEx,
what if I throw 10 to the consumer well in many cases it ends up to be a dollar for the consumer to get it now and obviously there he comes sales skyrocketed,
they’re doing silly Facebook videos and so that’s been really really exciting and we’re finding out a lot about,
really what the consumer is willing to pay for but especially when the brand allocates a couple bucks towards it a lot of times it’s a dollar or dollar is $5 you know ten bucks and we’re just been really exciting to see him.
Jason:
[16:21] Yeah it is you know pricing consumer pricing is one of the interesting things here because,
because we’ve sort of overwhelming data that in general consumer don’t like paying for shipping right inside you know the the Dirty Little Secret is something like 68% of all e-commerce.
Is sold with free shipping like that in that free shipping is of course never free to the retailer.
Readers are being forced to pass to absorb those costs rather than pass them on so I’ll call it a premium delivery service it’s doing 1 hour.
Like it’s interesting like our consumers more willing to pay for shipping for that one hour premium and they perceived that that’s that’s okay or do they have sort of the same attitude that they do with regular shipping they feel like they shouldn’t have to pay for it.
Chelsie:
[17:10] I cannot wait until a more data behind it I will say we have a brand right now that 68% of their consumers last month pick the ships the option when it was available to them which is,
phenomenal right I was thinking well if we have 10% 20% growth that’s amazing you know who knows what we’ll find,
what does to have one that 68% of their consumers are picking the ships the option and,
as a Founder it is so exciting to have this I want to color a team camaraderie with a lot of our retail clients because I’ll get a call that says child’s we just broke a record this week,
and I said quiet so did we because we just seen a consistent growth every single retailer has had,
higher shopping cart more dollars in the every in their shopping cart collectively and also Maury come orders so it’s just so exciting to see that that growth with those brands.
Jason:
[18:08] That that’s awesome I do feel like you’re benefiting from the sort of rapidly changing consumer expectations as well.
Chelsie:
[18:14] Yes yes.
Jason:
[18:15] I had a number of clients that sort of piloted not even one hour delivery but piloted same day delivery.
A number of years ago before I would argue before like in particular Amazon have,
had like set that expectation and back then there was this really interesting learning the same day delivery was considerably more expensive than the other delivery options,
and it wasn’t selected by very many consumers back then again they didn’t have the perception that that that was the the expected time frame and so it looks like this premium option,
even back then what it did when you added this really expensive same-day option it dramatically increase the number of consumers that would select the two day shipping option versus the slow shipping option so we started that price anchor.
[19:02] The the middle shipping options seem more appealing and you know fast forward,
we’re getting benefit from it even though there wasn’t really high consumer adoption and now you fast forward 5 years and it seems like that’s completely changed and per your experience when you throw that,
getting an hour button on it sounds like at least in some cases,
the majority of customers are now picking that option so that’s that’s a key lesson I think in this whole industry is.
You can’t just learn something once and assume that’s how it’s it’s going to work like the customer expectations are changing really quickly and what wasn’t a requirement for your business last year may well become a requirement.
Chelsie:
[19:49] And it’s interesting to see the price Dynamics I’m part of a woman’s group and we were working with some younger women who were in a,
I can’t quite work all the the name of their group but they were you know Middle School elementary school women who we were going to have to work with Friday,
someone had raised their hand after I was explaining shipsi and I I had an example where the ships the option was less expensive than the overnight option and so I think the girl must have been seven or eight and she stood up and said well.
Why would anyone pick the more expensive overnight option if I can get it in an hour for less less money and it was just,
that’s stuck out to me it because and I think my response was something like,
what is a really good question I don’t know why would someone pick them or extensive longer option but examples like that and and when children maybe point that out it’s fun to see that.
Jason:
[20:44] Yeah it’s always a good time when your business model can survive are you smarter than a 4th.
Chelsie:
[20:48] Yeah.
Jason:
[20:49] For sure so it wouldn’t be a Jason and Scott show if we didn’t mention Amazon and sewing in Scott’s absence I’m going to try to channel my my inner inner.
Chelsie:
[21:00] Okay let’s hear it.
Jason:
[21:02] It does feel like this is a major area of emphasis for an Amazon and they’re building out this Flex network of their own drivers the buying tens of thousands of their own delivery trucks,
and,
in the most recent earnings statement they did an interesting thing you know that they wished the the competitors that they that you should be worried about any added a new phrase to their competitor list shipping and logistics companies,
which I find very interesting so the fact that they’re winning so much into this is that,
competitive threat is that an opportunity how do you feel about about Amazon vs shipsi.
Chelsie:
[21:43] I actually think that it works to our benefit because I don’t know Jeff Bezos personally but I would say that he.
Jason:
[21:52] I’ll probably call you after a year.
Chelsie:
[21:53] Absolutely I would say that it would be shocking if Amazon didn’t take a big brother approach,
the things and I love the fact that we humbly sit in the background and support our retailers and that they are the hero they get the credit at the end of the day,
so I actually have seen the the expectation that Amazon has set on consumer expectations work to our benefit,
because any other retailer needs to figure out how to keep up and that’s when hopefully I got a call from them and they work with shipsi.
Jason:
[22:29] Yeah I would totally agree it seems like,
Amazon has like super access to Super inexpensive capital and lots of it so they build out this big infrastructure and that raises the expectations,
for all those consumers and tell every other retailer that needs you to figure out a more cost-effective way to deliver that same capability that I am.
Chelsie:
[22:49] Yes yes.
Jason:
[22:50] Best it in so you can only see that Dynamic playing out in your space are there any sort of case studies or initial clients that you can tell us about.
Chelsie:
[22:59] Yeah absolutely I said we’re working on a release that’s going out within the next couple of weeks so a few of them will be mention there but Atlanta vinyl is a really hot one for us right now edible who I mentioned,
there’s it’s really every shape and size and small and large and we cater to kind of their volume that they’re doing,
we also have a partnership with Oracle as part of a woman’s Founders program so that will essentially give us access and,
I’ll be able to cater to any any retailer that is currently running on that but yeah it has been so fine like I said,
one of the best parts about being a CEO is when we get calls or I got to call and I think it might be a customer service issue or or maybe something bad when someone on my team does they really want to talk to you right now right now right now,
we broke another record thank you I guess it’s just so so much fun.
Jason:
[23:53] Yeah for sure in general it’s it’s usually not a good thing when the retailer calls and demands to speak with you so it’s fun when it it’s it’s been when it’s happy news.
Chelsie:
[23:59] Yeah right right straight the other does another interesting one and they’re kind of in this younger women demographic so yeah it’s it’s been really exciting to see to see the progress.
Jason:
[24:13] Very cool you imagine the partnership with Oracle are there any particular software platforms that retailers run that you like a prickly well like that you have pre-existing Integrations with or you’re particularly well suited for.
Chelsie:
[24:26] So the way that we work as we would partner with our we do partner with the demand where is the netsuite or the I’ll call him that sweet forever because of my background but,
Shopify so we do a prebuilt integration,
if we have that pre-built integration it can be a couple of minutes until someone’s up and running and live with shipsi or I can be a couple hours,
of course we do some tests orders that we initiate or if we initiate with them,
and if it’s one that we’re not currently connected to our average time is anywhere from 6 to 12 months to finish that pre pre built in a gracian,
so we’re not not necessarily limited it’s just some of them are in a matter of minutes and some might be you know a month or two months yeah absolutely.
Jason:
[25:11] Got you but that’s a mean it’s big chunks of marketing Shopify alone you mentioned that sweet which is a quartz nail in my Oracle with that stuff to get used to it ain’t even tougher our friends at Salesforce want us to start calling demandware.
Salesforce Commerce cloud.
Chelsie:
[25:25] Commerce Cloud I will never and sweet Cloud it’s a yes.
Jason:
[25:29] Yeah the consolidation and name changes are up I do want to dive into what like are often perceived as some of the challenges with this model so you know one of the the challenges with using as on demand delivery services are the,
the drivers don’t work for the retailer right and so the retailer can’t make the driver deliver something like the reader can merely,
offer a deliver delivery in the driver can decide to accept it or not.
The majority of the time that works great and it’s a great career for you know this gig economy,
but there is this challenge with Pete demands right so everybody wants to deliver on Valentine’s Day and everyone wants to deliver the day before Christmas and a lot of those gig economy guys are working for multiple services and they.
You know might be making more money doing Uber deliveries then postmate deliveries on those peak days and so I think one of the perceived challenges with on-demand delivery drivers is,
shoot on the day I most need to promise the consumer I’ll absolutely get the package to them.
It’s the day that’s most risky that the gig economy drivers actually going to deliver that pack.
Chelsie:
[26:38] Yes yes.
Jason:
[26:39] Do I have that right and how do we solve that problem.
Chelsie:
[26:41] Yes absolutely so there are so many things that go into working with multiple last-mile networks one is the size weight and dimensions of whatever we’re sending soap just because someone has a specific type of car,
maybe that’s why we’re aligning them,
and we also have very strict criteria on The Last Mile networks that we work with because we want to always dad’s all the consumer expectations so maybe,
it’s a certain peak time that we don’t even pull from that last mile Network maybe it is,
specific merchandise or not during food hour is if it’s a food-related one so we have a last-mile Network that has just over 90% accuracy,
when they’re on their own but we build all of these blocks if you will blockers so that they have to deliver within that,
and we’ve gotten ones that are on 90% on their own up to a 98.5% delivery,
accuracy because we building a lot of those blocks and parameters.
Jason:
[27:42] That toy makes sense and I also Imagine because you work with multiple delivery networks you have the ability to sort of spread that risk around more than someone that’s working with a single delivery Network.
Chelsie:
[27:55] And automatically fill someone else in and yes absolutely.
Jason:
[27:59] So then the other thing that’s scary is there’s a lot of points of integration where data is flowing through the system,
Ecommerce is flowing through this way super Antiquated point-of-sale system that’s keeping the inventory and you have to get data from those systems and they have to send data to this wide variety of different,
delivery networks and get it sounds like a lot of real-time data back from them about the status of those deliveries in those are two things,
I feel like we’ve all been at a a restaurant that’s like struggling to do all their their various food deliveries and you see the printer jammed up in like,
everything goes off the rails like there’s there’s some fear that there’s a lot of fragile point of integration in this.
Chelsie:
[28:44] Is a lot there is a lot and something that was really critical and important to us when building the business,
is it’s not our reputation that is at stake it is the retailer with their consumer which is why it makes all these complicated systems even more important that we don’t screw it up,
because it’s not our reputation at risk it’s really the retailers which is why we have that customer service and the real-time tracking but something else that.
Is that an investor pointed out to me actually was probably almost 2 years ago.
And we had been working with a couple hundred Alpha and beta customers at the time and he said this is just too messy and complicated you can’t do this and if anyone who first and only remember you professionally knows me.
Jason:
[29:28] The wrong thing to say or the right thing to say.
Chelsie:
[29:30] Are you yes yes it let another fire under my ass off I know you don’t think so great watch me and I delivered something to him within 21 minutes and had him initiate the order,
and yes it is complicated but you know we have an amazing Tech Team and I think my CTO all day long that they finish things before I even really know they were a problem so thank you been,
and it’s just been amazing to see it come alive.
Jason:
[30:00] One thing we failed to bring up earlier the economic model for your Retail Partners do they pay you a fee per delivery is there something like is it a red sheer like what’s the,
I am not looking for the actual price but like what’s the basic model that a retailer buys into.
Chelsie:
[30:15] Yeah the basic model is the based on four different tears so it’s based on the size of the volume of orders that the retailer is doing so that we can cater to the Bob bait shops of the world and also the Nikes so it’s a monthly subscription,
and then a small portion of the delivery fee but keep in mind the retailer isn’t paying for shipping,
so we have seen that actually we should we charge about 10 times more than we are but we really like retailers and we’re on boarding as many as way we can right now so we’re just going to keep rolling with it it’s fun to see them breaking records and US breaking records as well.
Jason:
[30:51] Yeah I feel like there’s some hidden costs that are saved in last mile delivery that people sometimes forget about.
Packing cost to make something UPS a bowl can often be a lot higher than the poly bag that you might.
Deliver in until there are some places to take costs out of the system when you do this kind of delay.
Chelsie:
[31:12] Yes and we’re working on some cool case studies right now with some of that because people that have to pay a lot for the packaging like if it’s dry ice or if it’s fragile or things like this we one of our tears of retailers we actually offer a,
like a matte black bag so that the driver picks it up instead of a sexy matte black bag or a box because the retailer doesn’t have to,
packaging and some kind of fragile packaging and yeah there’s also saving money on the packaging and the materials as well.
Jason:
[31:41] Yeah but in the end we talked a little bit about the the price that is offered to the consumer at it sounds like,
researchers are testing different price points are there any best practices that have emerged so far like like what where do you recommend retailer start in terms of pricing 1 hour delivery.
Chelsie:
[31:57] So we either we have a couple different options option one is just a display what the exactly what that price is we are completely transparent about that cost and filter it through directly from The Last Mile Network we don’t want to mark that,
up or down because we wanted to be as low what we want to do is low for the consumer as possible so that they pick up more.
The second option is if the retailer subsidizes a portion of that,
we’ve seen Jurassic success even if they only put 3/4 or box towards whatever that might be,
and it’s easy if you already have something like that built in European L and I already have a line item for that just throw that into the shipping cost so,
I should know we haven’t seen any crazy you know they always pick it up at the dollar that’s easy to say or try not to use always and never but.
Very very very very often when it’s a dollar or I would say under 5 is kind of a no-brainer for consumers,
it’ll be interesting when you asked me that question in a year looking forward to to finding out more about that.
Jason:
[33:04] Well we will take you up on that offer to come back in a year and share some of that data
and that’s going to be a good place to leave it because it’s happen again we’ve used up all our a lot of time as always it was nice have a burning question for Chelsea feel free to jump on Facebook and we’ll continue the conversation there
if you enjoyed the show we sure would appreciate that five star review on iTunes Chelsea of listeners want to learn more about shipsi,
where should they find you guys.
Chelsie:
[33:30] Yeah I would say probably the first guess is a hello at shipsi. Com otherwise feel free to reach out on LinkedIn.
Jason:
[33:38] So we’ll put those links in the show notes for folks that are driving please don’t stop and write that down but it is a ship SI.
Chelsie:
[33:48] Phi PSI.
Jason:
[33:49] Yeah on a podcast you might be imagining that your ship.
Chelsie:
[33:52] Yes.
Jason:
[33:53] In the letter c so wanted to highlight that Chelsea really enjoyed chatting with you thanks for being on the show.
Chelsie:
[33:59] It was a pleasure thank you so much.
Jason:
[34:01] Until next time happy conversing.
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