How Endicia Understood Shipping Pain Points and Thrived by Providing a Solution -- With Amine Khechfe
December 29, 2015 78 min read
At the beginning of online shopping, when companies appeared and vanished, there was the simple choice of going with your local Post office for shipping. However as technology advanced, online shopping became less of a chore and more intuitive, consumers wanted better experiences. From this, we’ve witnessed pain points arise in terms of cost for sellers. So to combat that, sellers hurt the consumer’s experience by increasing shipping times, and other nuisances. Endicia looks to resolve the cost pain point so that sellers don’t have to cut corners and consumers could still be happy with the businesses they purchase from.
In the Fifteenth episode of Skubana’s E-Commerce Mastery Series where we invite experts of their respected fields to share their best practices for success, our host, Dr. Jeremy Weisz of InspiredInsider.com interviews Amine Khechfe of Endicia.
What this interview covers:
- The story of Endicia and how it grew to one of the top shipping providers in the United States.
- The importance of being customer-centric and resolving pain points.
- How Endicia identified trends from shipping habits and what to expect in the future of E-commerce.
- How the trend of returns doesn't have to harm your business
- The conferences you may attend to help you learn more about your industry and how to ship smart for your industry.
Raw Transcript: Amine Khechfe of Endicia
[00:04:33] We like to be very customer centric. Let's take an example of a partner that may be integrating us. If we have a joint customer, that customer will speak loudly why they selected that partner, for example, versus another. And that's usually what builds the relationship because now it's a differentiation, or it's an innovation, or it solves a problem. And we keep track of that, and then we'll work with them, because a lot of times a customer will come to us and say, "I use this marketplace, or this accounting system, who do you recommend?" We usually will have three or four partners that may fit that.
[00:16:46] We found that, for the first time, we might be able to influence it, by going in there and saying, "What are the shipping problems? Can we bypass those and create a new in between product?" Given the fact that, as you mentioned, we now have the size of 605 million parcels last year, and we go and bring the economies to scale for our 100,000 merchants or 85,000 merchants, and bring them something that only the 10 largest companies in the US could have done. So that's an interesting...
[00:23:32] So we looked at that, and us being engineers, we said, "That's the problem." As much as we got for 10 years, we're all excited about postage. We realized that the importance was really the solution around the postage. Within about 12 months of us launching our products, we automated those three items. We integrated the tracking with the postage and address, we had the customs forms, and we got online insurance.
[00:57:03] I think now as the industries gone, I use eBay more directionally from the sense, in 2000, that was a little bit of where it started, but really the whole e-commerce ecosystem has grown. If you look at the metrics on the growth of the market, Amazon is probably the largest, of course, and that's whose name comes in. But we saw earlier this year with Alibaba's IPO, for me, at least, and what I read, there was a lot of discussions about that. A lot of those market places that are no longer just domestic, they're international. And so you see those trends, those are driving the whole e-commerce ecosystem is driving businesses up.
[01:05:29] I think people revert back, and I see these email chains on something, or social media, or we get removed from the people we work with, and we create obstacles sometimes. A nice friendly phone call, or go break bread with somebody, resolves things very easily. And so that's one I always take, I always remind myself when I'm sitting on my desk, I've got my 200 emails or 500 emails today. Get up, walk over to the person and talk to them.
Be sure to utilize this real insight from a real marketing expert to help your e-commerce business grow and succeed. Stay tuned - this will be an ongoing weekly series featuring a variety of e-commerce experts looking to provide you with hard-won knowledge free of charge.
Checkout out our previous E-Commerce Mastery Series episode featuring Steve Chou of My Wife Quit Her Job / BumbleBee Linens as he discusses how he balances work & life while running two six-figure businesses.
Work Smart. Sell More.
Written By Chad Rubin