Shopify Fulfillment Network to Cut Number of Locations
In this article
Late last week, Business Insider reported that Shopify Fulfillment Network is cutting contracts at several warehouses and fulfillment centers in the US, marking a potential shift in their strategy.
Today, they attempted to clarify the impending cuts by stating, “We will be making changes to the SFN (Shopify Fulfillment Network) to help merchants compete with big-box retailers, such as prioritizing two-day shipping at affordable prices and access to easy returns for U.S. shoppers.”
The company is expected to update sellers and the market on their strategic shift during its earnings call next month, but in the meantime, merchants are confused.
How does scaling down the number of SFN fulfillment locations in the US help merchants using SFN access affordable two-day shipping, as they attest?
Wedbush analyst Ygal Arounian sums up Shopify’s challenge well: “Shopify is nowhere close to building a type of fulfillment operation at the scale of Amazon, and investors should not expect anything like that in the near term”. Investors have taken notice of Shopify’s recent struggles – the stock is down nearly 50% from its November high of 1,690.60.
We’d assert that this change is more important for merchants than investors, as it reveals that Shopify Fulfillment Network isn’t an FBA alternative, and instead is moving in the opposite direction.
Merchants that want to power their sales with affordable, reliable fast shipping will need to look elsewhere for a fulfillment solution.
Shopify Fulfillment Network’s Pros & Cons
Like Amazon FBA, Shopify is building its own logistics solution for eCommerce sellers, Shopify Fulfillment Network.
It combines seamlessly with a merchant’s Shopify account, making it an easy way to start fulfilling eCommerce orders for someone with a new DTC store. It also comes with software that helps merchants with order and inventory management, and it boasts a dedicated customer service team that helps merchants overcome operational challenges.
Unfortunately for merchants with big growth ambitions, it’s focused on fulfilling Shopify orders and not orders from other channels. On top of that, it doesn’t offer fast shipping by default. Merchants that want to win on multiple channels will likely need an additional 3PL for their other orders. More importantly, they won’t be positioned to offer affordable fast shipping to their customers. With Amazon and other national fulfillment services setting the bar at 1- and 2-day free shipping, merchants that rely on SFN will be left at a significant disadvantage.
Cahoot: The Best Shopify 3PL
If you need a fulfillment solution that keeps up with Amazon FBA at always-affordable prices, give us a call.
Unlike Shopify Fulfillment Network, Cahoot’s fulfillment network has no trouble keeping up with FBA. We’ll help you level the playing field with marketplaces and delight your customers with a stellar, Amazon-like delivery experience – right on your Shopify store.
It sounds expensive, but our innovative peer-to-peer model offers low-cost fast fulfillment by design. As a result, our pricing is typically lower than that of other top providers, but we can beat them on fulfillment speed and reliability.
And of course, we don’t stop there. We have pre-built integrations with major marketplaces to fuel your multi-channel growth.
If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how Shopify fulfillment was meant to be.
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FedEx Announces 2019 General Rate Increase
In this article
FedEx Express and FedEx Ground will increase shipping rates effective Jan. 7, 2019 by an average of 4.9 percent, while FedEx Freight will increase by an average of 5.9 percent.
The change will impact the following: Express package and freight standard list rates for U.S., U.S. export and U.S. import services. In addition, there will be changes to FedEx surcharges and minimums also effective on Jan. 7
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Fast Company Recognizes Cahoot in the 2020 World Changing Ideas Awards
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New York, April 28, 2020 — The winners of Fast Company’s 2020 World Changing Ideas Awards were announced today, honoring the businesses, policies, projects, and concepts that are actively engaged and deeply committed to flattening the curve when it comes to the climate crisis, social injustice, or economic inequality.
New York, April 28, 2020 — The winners of Fast Company’s 2020 World Changing Ideas Awards were announced today, honoring the businesses, policies, projects, and concepts that are actively engaged and deeply committed to flattening the curve when it comes to the climate crisis, social injustice, or economic inequality.
Cahoot is an eCommerce order fulfillment network that helps online businesses offer nationwide free 1-day and 2-day delivery to its customers at no additional costs. It cuts down the distance packages need to travel by having nearby businesses store and ship products for each other. So instead of flying packages by air long-distance to customers, merchants can ship via economical and greener ground shipping. In 2019 alone, Cahoot has cut down more than 2 million miles of carbon emissions for its network members. Also, Cahoot’s peer-to-peer model allows merchants to offset storage and fulfillment costs by fulfilling orders for each other. Therefore, every merchant on the platform can ship locally and beat fast shipping standards with better margins. This year, Cahoot is awarded Honorable Mentions for The Best World Changing Idea in North America and the Experimental category.
Now in its fourth year, the World Changing Ideas Awards showcase 26 winners, more than 200 finalists, and more than 500 honorable mentions—with Health and Wellness, Corporate Social Responsibility, and AI and Data among the most popular categories. A panel of eminent judges selected winners and finalists from a pool of more than 3,000 entries across transportation, education, food, politics, technology, and more. The 2020 awards feature entries from across the globe, from Vancouver to Singapore to Tel Aviv.
Illustrating how some of the world’s most inventive entrepreneurs and companies are addressing grave global challenges, Fast Company’s May/June issue celebrates, among others, an electric engine for airplanes that eliminates emissions from flights—and expensive fuel from the tricky financial calculus of the airline industry; a solar-powered refrigerator that finally frees people in remote villages from daily treks to distant markets, transforming the economics of those households; an online marketplace that connects food companies with farms to buy ugly and surplus produce to fight waste; and an initiative to offset all of the carbon costs of shipping, creating a new model for e-commerce sustainability.
Cahoot aims to continue making the world a greener place while leveling the playing field in eCommerce. “The key to sustainable one-day delivery is having fulfillment centers close to customers and shipping them cheaply using ground services,” says Manish Chowdhary, founder and CEO of Cahoot. “It is near impossible for smaller brands to build a distribution network to compete on a level playing field. We need to change the game. We can’t work in siloes building our own facilities trying to compete against Amazon. The only way forward is to work together.”
“There seems no better time to recognize organizations that are using their ingenuity, resources, and, in some cases, their scale to tackle society’s biggest problems,” says Stephanie Mehta, editor-in-chief of Fast Company. “Our journalists, under the leadership of senior editor Morgan Clendaniel, have uncovered some of the smartest and most inspiring projects of the year.”
About the World Changing Ideas Awards: World Changing Ideas is one of Fast Company’s major annual awards programs and is focused on social good, seeking to elevate finished products and brave concepts that make the world better. A panel of judges from across sectors choose winners, finalists, and honorable mentions based on feasibility and the potential for impact. With a goal of awarding ingenuity and fostering innovation, Fast Company draws attention to ideas with great potential and helps them expand their reach to inspire more people to start working on solving the problems that affect us all.
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2019 General Rate Increase (GRI) for USPS, FedEx and UPS
In this article
2 minutes
USPS
USPS announced its GRI will take effect January 27, 2019.
The Details:
– Priority Mail Express will increase 3.9%
– Priority Mail will increase 5.9%.
– Mailing Services product prices will increase 2.5%
– First-Class Package Service will move to zone-based pricing
– First-Class Mail Forever stamps will increase from $.50 to $.55
USPS’ dimensional weight (DIM) pricing is also increasing substantially. Currently, the Postal Service only uses DIM pricing for Zones 5-9 Priority Mail. In Q2 2019, expect USPS to implement DIM pricing for all Priority Mail, Priority Mail Express and Parcel Select packages that are larger than one cubic foot. Furthermore, the DIM will be reduced from 194 to 166—a small change that can have a big impact on parcel shipping costs. https://about.usps.com/news/national-releases/2018/pr18_086.htm
FedEx
FedEx announced its GRI will take effect January 7, 2019.
The Details:
– FedEx Express and FedEx Ground will increase by an average of 4.9%
– FedEx Freight will increase by an average of 5.9%.
– Look out for changes to FedEx surcharges and minimums
– FedEx Express and Ground minimum increases will range from 3.5% to 5.4%.
Remember, increases will not be implemented across the board. While FedEx Express and Ground report that “on average” rates are going up 4.9%, some categories will experience hikes as high as 8.2%. For example, Surcharges and Fees will be increasing in most cases upwards of 5%, and the Print return labels pricing is doubling. Be aware of how you send packages and take action if necessary to soften the blow of the increases. https://www.fedex.com/en-us/shipping/current-rates.html
UPS
Most of UPS’ GRIs take effect December 26, 2018.
The Details:
– The rates for UPS Ground, Air and International services will increase an average 4.9%.
– Fuel surcharges will apply to Additional Handling, Over Maximum Limits, Signature Required and Adult Signature Required accessorials.
– A $2.00 processing fee per package will be charged when Package Level Detail (PLD) is not provided to UPS prior to delivery.
– The rates for certain value-added services and other charges will increase. https://www.ups.com/us/en/shipping/rates-update.page?WT.mc_id=VAN701700
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Cahoot Partners with Walmart Marketplace to Enable Online Retailers to Offer Nationwide 1-Day and 2-Day Delivery
Marketplace Sellers Leverage Peer-to-Peer Fulfillment to Grow Sales with Affordable Nationwide Fast Shipping.
BRIDGEPORT, CT (August 30, 2021) – Cahoot, the world’s first peer-to-peer eCommerce fulfillment network, announced its partnership and integration with Walmart (NYSE: WMT). Cahoot is now a certified shipping and fulfillment solution for Walmart’s marketplace sellers.
Cahoot’s revolutionary peer-to-peer fulfillment model enables brands and online retailers to affordably provide one-day and two-day delivery nationwide. With its rapidly growing network of eCommerce order fulfillment centers coast-to-coast, Cahoot is quickly becoming the fulfillment provider of choice for high-volume sellers on marketplaces such as Walmart, Amazon, and eBay and eCommerce platforms such as Shopify, BigCommerce, and Magento.
“We’re excited to integrate with Walmart ahead of the record-breaking holiday season just around the corner,” said Cahoot Founder and CEO Manish Chowdhary. “The industry’s rapid growth has fulfillment capacity bursting at the seams. Our novel peer-to-peer model solves this problem by unlocking thousands of eCommerce merchants’ excess warehouse space and fulfillment capacity. Collectively, the Cahoot network is doing for eCommerce fulfillment what Airbnb did for lodging.”
A Reliable Solution for Walmart’s Free 2-Day Delivery Program
Cahoot’s Walmart Marketplace Integration enables approved sellers to participate in Walmart’s 2-Day delivery program and display the Free 2-day shipping badge on their marketplace listings. Walmart has observed that sellers with this badge enjoy an up to 50% increase in conversion, making it one of the most powerful ways sellers can grow their sales. To help merchants delight their customers with exceptional delivery experience, Cahoot provides affordable same-day fulfillment 6 to 7 days a week and maintains a strict service level agreement of 99.95% on-time fulfillment and 99.9% order accuracy.
Flexible Across Channels & Works Seamlessly with In-House Operations
The patented Cahoot eCommerce order fulfillment platform provides eCommerce merchants with unsurpassed ease of use and complete visibility into inventory, orders, fulfillment performance, and package tracking – across all sales channels. Unlike traditional 3PL networks, the Cahoot network can seamlessly integrate with existing merchant fulfillment, which upgrades their strategy without introducing more complexity. With Cahoot, orders automatically flow to the optimal shipping point, whether it’s a Cahoot fulfillment center or the merchant’s own warehouse.
Cahoot has really helped us grow our multi-channel sales. We use Cahoot to fulfill our Walmart 2-Day orders and our Amazon standard and SFP orders. In addition to saving us money, we really like that their software and their fulfillment network work seamlessly with our own in-house fulfillment operations. Our old 3PL couldn’t do that.
Kris Koesema
Battery Jack
The Power of Many
Like the Airbnb marketplace of homeowners and travelers, the patented Cahoot order fulfillment network brings together the collective power of SMBs and their warehouses to fulfill orders, thus reducing fulfillment costs and expediting delivery.
Cahoot is available for merchants looking to expand their reach for one- and two-day delivery services across all selling channels, including Amazon, Walmart, eBay, Shopify, BigCommerce, and more. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai.
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Cahoot is the world’s first peer-to-peer eCommerce fulfillment network. It helps online businesses offer nationwide 1-day and 2-day deliveries. In addition, Cahoot’s model is the lowest cost by design because it enables merchants to store and ship merchandise for each other. This novel business model also allows merchants to make extra money using their existing warehouse space and personnel.
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Shippers Beware: New USPS Dimensional Pricing Coming June 23
In this article
The second phase of the United States Postal Service changes kicks in on June 23, 2019. USPS is changing the way it charges for boxes shipped via Priority Mail, Priority Mail Express as well as new international weight limitations. Currently, USPS applies a dimensional divisor (DIM) of 194 for boxes that exceed one cubic foot in volume, and DIM only applies to zones 5 and above. Starting June 23, 2019, the DIM divisor will be reduced to 166 and will apply to ALL zones (local and 1-9) for Priority Mail, Priority Mail Express and Parcel Select.
The second phase of the United States Postal Service changes kicks in on June 23, 2019. USPS is changing the way it charges for boxes shipped via Priority Mail, Priority Mail Express as well as new international weight limitations. Currently, USPS applies a dimensional divisor (DIM) of 194 for boxes that exceed one cubic foot in volume, and DIM only applies to zones 5 and above. Starting June 23, 2019, the DIM divisor will be reduced to 166 and will apply to ALL zones (local and 1-9) for Priority Mail, Priority Mail Express and Parcel Select.
The first phase of USPS rate hike went into effect in January earlier this year.
Retailers doing order fulfillment must also provide dimensions when the package cubic volume measures over one cubic foot (1,728 inches) while generating labels. Shippers are also encouraged to provide dimensions for all packages and allow for configurable dim divisors to support future changes. Negotiated Service Agreements (NSAs) will be allowed to have a configurable dim divisor for each Zone at this present time.
If you are a USPS shipper, this will impact you. Let’s see this via the following example.
|
Dimensions |
Old Price |
New Price (effective June 23) |
Price Increase |
|---|---|---|---|
|
15 x 12 x 10 |
10 Pounds (194 DIM) = $26.85* |
11 Pounds (166 DIM) = $29.00* |
$2.15 (8% INCREASE) |
*Priority Mail Retail Rates to Zone 5
While the DIM change from 194 to 166 will certainly impact some postal shippers, it’s important to know that the Postal Service will continue to apply actual weight for packages that don’t exceed one cubic foot in volume. That is, if the cubic volume of a box doesn’t exceed 1728 inches, the charge will continue to be based on the actual weight (not DIM weight).
That’s not all. The Postal Service will also revise the weight limitation for First-Class Mail International (FCMI) flat pieces to 15.994 oz. to more closely align the definition of FCMI large envelopes (flats) with that of the Universal Postal Union Conventions.
For FCMI flats that are over 15.994 oz., USPS will not process those as FCMI starting June 23, instead, you will need to classify and mail those pieces under First-Class Package International Service (FCPIS).
You could alternatively elect to use another class of mail such as Priority Mail Express International or Priority Mail International, if the mail piece meets the requirements for those mail classes.
Below are few strategies for offsetting the impact of the new DIM billing:
1. Move package volume from USPS to FedEx/UPS or other parcel carriers. High-volume shippers can negotiate deeper discounts and more favorable DIM divisors. Many regional carriers offer shipper-friendly DIM divisors compared to the large national carriers. The large national carriers right now may be more open to offering special incentives to shippers as they try to offset the loss of business from Amazon.
2. Try to get commercial base pricing (CBP) or commercial plus pricing (CPP). Most Cahoot merchants qualify for special CBP and CPP pricing; please contact us if you are not enjoying these rates already. High-volume shippers can get even deeper discounts by pursuing a negotiated services agreement (NSA) with the Postal Service or through authorized postal resellers. These discounts could offset DIM increases, at least in the short-term.
3. Improve packaging. By reducing excess box dimensions and minimizing fill, shippers can reduce the impact of dimensional pricing, reduce corrugated and packing material costs, and reduce carbon emissions.
4. Optimize via Cahoot. By joining Cahoot’s innovative peer-to-peer ecommerce order fulfillment networkTM, you can convert say a zone 8 shipment to a zone 2 shipment. You save big which more than makes up for any DIM billing increase, plus the packages get delivered to your customers faster.
If you haven’t yet considered the impact of the upcoming June 23 changes, you could be looking at an 8 percent-plus increase on some or more of your USPS packages. Please contact a Cahoot Expert, if you need help or would like to learn more.
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Cahoot Named to Fast Company’s Prestigious List of the World’s Most Innovative Companies for 2021
In this article
BRIDGEPORT, CT (April 14, 2021) – Cahoot, the world’s first peer-to-peer eCommerce fulfillment network, announced that it has been named on the Fast Company’s Prestigious List of the World’s Most Innovative Companies for 2021. Cahoot enables brands and online retailers to affordably provide one-day and two-day delivery nationwide by storing and fulfilling goods for each other.
Fast Company’s Most Innovative Companies (MIC) list honors the businesses that have not only found a way to be resilient in the past year but also turned those challenges into impact-making processes. These companies did more than just survive; they thrived—making an impact on their industries and culture as a whole. This year’s list features 463 businesses from 29 countries.
“We are honored to be named one of the World’s Most Innovative Companies and recognized for our work. We are enabling businesses of any size to affordably offer their customers the same superfast delivery experience as Amazon” said Manish Chowdhary, Founder and CEO of Cahoot.
Like the Airbnb marketplace of homeowners and travelers, the patented Cahoot fulfillment network brings together the collective power of many SMBs and their warehouses to fulfill orders, thus reducing fulfillment costs and expediting delivery. Cahoot’s optimization algorithm further analyzes all combinations of warehouses, carriers, and shipping services to find the most affordable and efficient way to deliver orders fast.
With consumers flocking to online shopping in 2020 due to COVID, eCommerce grew an unprecedented 44% year-over-year, nearly three times the historical annual growth. At the height of the pandemic, even Amazon’s fulfillment services faltered. Customer orders took almost a month to arrive as warehouses struggled to fulfill orders. Amazon stopped accepting non-essential goods in its warehouses and prioritized its direct sales over those of its marketplace sellers, leaving hundreds of thousands of sellers that rely on its popular fulfillment service (FBA) scrambling for alternatives. Such incidents have caused merchants to always be prepared with a backup provider when they need it.
This eCommerce explosion has led to a shortage in warehouse space, well-priced and available labor, and carrier capacity. Warehouse vacancies reached an all-time low in Q3 2020 while rents were at an all-time high. LinkedIn also reported a surge of 73% job openings for fulfillment workers, the highest among all categories, and wages began creeping up. Moreover, all major carriers, including USPS, increased rates and added surcharges to handle the unprecedented increase in demand. All of this has resulted in much higher operational costs for retailers. And, at a time when most consumers are struggling financially, raising prices is not an option for merchants.
“Traditional solutions do not meet the needs of SMBs – unlike large corporations that have the power to negotiate aggressively with landlords and carriers to stay competitive. With Amazon pushing its popular prime membership program to transition from 2-day free delivery to now 1-day, even the largest retailers are facing logistical challenges. But Cahoot changes all that by intelligently aggregating the power of many,” said Chowdhary.
By unlocking previously unavailable warehouse capacity from tens of thousands of merchants across the U.S., Cahoot is transforming eCommerce fulfillment into a new collaborative model that’s more efficient. Cahoot’s fulfillment model is also environmentally friendly besides scaling up to meet the rising consumer expectations of free and fast delivery. And for the first time, online merchants can monetize their existing warehouse space and labor in a way previously not imagined or possible. “Before Cahoot, we didn’t really know how to leverage our extra space and fulfillment capacity. Becoming a Cahoot Fulfillment Partner has been a great way to make extra money without the hassle of becoming a full 3PL. Onboarding was fast and easy; Cahoot software is so efficient that we pick Cahoot orders before our own!” said Robert Hill, CEO of Seismic Audio Speakers.
With Cahoot, merchants can expand to regions previously too far for fast ground shipping and too expensive for expedited air shipping. “My customers now expect free 1-day and 2-day delivery, which is very expensive and difficult to provide. But with Cahoot, I can now offer 1-day delivery in both the East and the West with ground shipping, in addition to my home state of Kentucky,” said Darren Somerville of Impact Battery.
By providing fulfillment as a utility-like service as opposed to a competitive advantage previously available only to the largest and highly capitalized corporations, Cahoot aims to fuel even greater innovation – sure to benefit consumers around the world.
“Before Cahoot, we were selling only on Amazon. The inventory restrictions imposed by Amazon FBA were difficult for my business,” said Eli Miller, owner of Twinkle Toy. “Cahoot helped us grow by serving customers nationwide across multiple selling channels, including our own website. It’s a whole new opportunity that I would never have had without Cahoot.”
Cahoot’s shipping volume increased five-fold year-over-year in 2020. Many merchants have found success through Cahoot:
- A chocolatier in Brooklyn, NY, added 34% more sales just by outsourcing fulfillment to 2 additional locations.
- A prominent battery merchant in the Midwest maintained their Amazon Seller Fulfilled Prime eligibility by expanding 1-day ground coverage to 45%+ of U.S. consumers.
- Another merchant selling big, bulky products saved 88% on two-day delivery costs and tripled sales in just three weeks.
Fast Company’s editors and writers sought out the most groundbreaking businesses across the globe and industries. The World’s Most Innovative Companies is Fast Company’s signature franchise and one of its most highly anticipated editorial efforts of the year. It provides both a snapshot and a road map for the future of innovation across the most dynamic sectors of the economy.
Cahoot is available for merchants looking to expand their reach for one- and two-day delivery services across all popular selling channels, including Amazon, Walmart, eBay, Shopify, BigCommerce, and more. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai
ABOUT CAHOOT
Cahoot is the world’s first peer-to-peer eCommerce fulfillment network that helps online businesses offer nationwide 1-day and 2-day deliveries. Cahoot offers drastically lower fulfillment fees because it enables merchants to store and ship the merchandise for each other. This novel business model also enables merchants to make extra money using their existing warehouse space and personnel.
ABOUT FAST COMPANY
Fast Company is the only media brand fully dedicated to the vital intersection of business, innovation, and design, engaging the most influential leaders, companies, and thinkers on the future of business. Fast Company’s Most Innovative Companies issue (March/April 2021) is now available online here, on iTunes, and on newsstands beginning March 16, 2021
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Amazon and Apple Get Co-Opetitive
In this article
More Apple products are getting the stamp of approval from Amazon, which will officially enable the sale of a range of new devices on-site from the tech brand.
Amazon is approving the sale of the latest iPad Pro, iPhone and Apple Watch models by authorized resellers rather than just through the third-party marketplace, according to TechCrunch. Independent sellers will, in fact, have their listings removed. Amazon already allows the official sale of some products, such as laptops and Beats headphones.
The change in the trade partner relationship raises questions about the extent to which Amazon considers Apple to be a competitor and what Amazon’s long-term plan might be for the device market. The two companies have been involved in an ongoing push/pull over their competitive devices, with Amazon sometimes removing Apple products from its site or Apple refusing to play ball with Amazon in some other manner.
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Amazon Officially Calls Out UPS and FedEx as Competitors
In this article
Amazon has long downplayed its delivery ambitions, claiming its own shipping and delivery services are only intended to “supplement” existing partners such as UPS and FedEx, saying it just wanted to address capacity shortfalls. Until now, that is.
Amazon has long downplayed its delivery ambitions, claiming its own shipping and delivery services are only intended to “supplement” existing partners such as UPS and FedEx, saying it just wanted to address capacity shortfalls. Until now, that is.
In its 2018 10K filing, Amazon for the first time listed “transportation and logistics services” as a competitive sector in the boilerplate “risk factors” section, along with the existing list of categories including “physical, ecommerce, and omnichannel retail, ecommerce services, digital content and electronic devices, web and infrastructure computing services.”
Amazon clearly needs to get a handle on the growth of its shipping spend, which hit $27.7 billion in 2018, up 31% from $21.1 billion in 2017 and up a whopping 72% from $16.2 billion in 2016. For 2018, fulfillment represented 14.6% of Amazon’s net sales. Analysts see the company’s many and growing logistics initiatives as a way to offset some of that cost.
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Shipsurance Partners with Cahoot to Offer Discounted Shipping Insurance to eCommerce Merchants
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WOODLAND HILLS, CA (June 9, 2021) –
The Cahoot eCommerce fulfillment network has announced a partnership with the Shipsurance by Assurant (NYSE: AIZ) to offer discounted all-risk shipping insurance to merchants who use the Cahoot platform. With Shipsurance, Cahoot merchant partners have full, integrated access to insure their parcels for loss and damage while in transit.
Cahoot is the world’s first peer-to-peer eCommerce order fulfillment network. It enables online retailers and brands to affordably provide one- and two-day delivery nationwide by storing and shipping merchandise for each other. With its rapidly growing network of over one hundred eCommerce merchants coast-to-coast, Cahoot is quickly becoming the fulfillment choice of high-volume sellers on ecommerce platforms such as Shopify, Magento, and BigCommerce and marketplaces such as Amazon, Walmart, and eBay.
Shipsurance provides small to medium-sized businesses and enterprise eCommerce shippers alike with low-cost shipping insurance for packages shipped with major US and International carriers such as FedEx, USPS, DHL, and UPS. Shipsurance provides all-risk insurance with fast and easy claims processing, making it an affordable and convenient alternative to the declared value coverage offered by carriers.
Merchants who work with Cahoot now have access to worldwide shipping insurance powered by Shipsurance. Offering package protection to all Cahoot merchants adds another layer of protection to the fulfillment process. It can also save shippers thousands of dollars in shipping fees when compared to the carriers’ offerings. The shipping carriers offer declared value protection that is often costly, and the coverage is contingent on proving they are at fault if a package is lost or damaged. The insurance product offered through Cahoot provides coverage for packages in transit, often at a fraction of what the carriers charge. Shipping claims are typically paid within a week with multiple payment options, in sharp contrast to declared value claims with carriers that can take months.
Some of the benefits of using Cahoot’s insurance offering are:
- Low-Cost Coverage – Save up to 90% over the carrier declared value costs
- Broader Coverage – Coverage is all-risk with easy-to-read and understand coverage rules with clear and concise coverage terms
- Actual Insurance – This is not declared value coverage and does not require proof of negligence
- Paperless Claims – The claims process usually takes less than one week. A personal claims agent is available to you that is courteous and helpful throughout the process
“Our novel business model and patented software enable Cahoot to offer the highest fulfillment standards in the industry at drastically lower pricing. Partnering with Shipsurance to reduce the cost of insuring packages during transit helps make our service even better and more affordable,” said Cahoot Founder and CEO Manish Chowdhary.
Shipsurance’s all-risk coverage is broader and more robust than declared value coverage. For example, Shipsurance covers a lost package even if the carrier generated a delivery scan if it was mis-delivered. The declared value coverage provided by carriers does not. Shipsurance covers a situation where a package was delivered to the incorrect address.
“Fast and free shipping is essential to delivering a great customer experience. However, most importantly, the buyer must receive their items in good order. Shipsurance’s coverage, rapid-claims processing, and dedicated claims agent bridge this gap – making it a great addition to Cahoot’s fulfillment services,” states Ariel Shmorak, Vice President of Operations for Shipsurance.
Shipsurance is available for all merchants using the Cahoot platform. It’s an excellent combination for merchants looking to expand their reach for one- and two-day delivery services and lower shipping insurance costs. Merchants that signup for Shipsurance via Cahoot by September 15th, 2021, can enjoy an additional 10% discount over the already low rates. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai
ABOUT CAHOOT
Cahoot is the world’s first peer-to-peer eCommerce fulfillment network that helps online businesses offer nationwide 1-day and 2-day deliveries. Cahoot offers drastically lower fulfillment fees because it enables merchants to store and ship the merchandise for each other. This novel business model also enables merchants to make extra money using their existing warehouse space and personnel.
ABOUT SHIPSURANCE BY ASSURANT
Shipsurance Insurance Services, Inc., an Assurant, Inc. company (NYSE: AIZ), is a shipping insurance provider that offers all-risk shipping coverage for shipments sent via the major shipping carriers at rates often more than 90% less than the carrier rates. Shipsurance provides rapid, online claims processing, with most claims paid within a week. Shipsurance has been insuring eCommerce businesses for over eighteen years, and coverage is underwritten by an ‘A’-rated insurance company.
Offer 1-day and 2-day shipping at ground rates or less.
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