ShipHero acquires Florida-based Cargo Cove Fulfillment

In an effort to tap into Florida’s retail supply chain, e-commerce fulfillment platform ShipHero on Friday announced the acquisition of Jacksonville-based Cargo Cove Fulfillment, a full-service logistics company. with over 50 partner e-commerce brands. These companies will now be part of the network of more than 5,000 ShipHero partner brands.

For ShipHero, the move is about growth. The company is now present in the most populous city in one of the most populous states, further expanding the reach of the New York-based service along the east coast. It will also open the state to faster service from the world’s largest e-commerce marketplace, Shopify (NYSE: SHOP), for which ShipHero is the official channel partner.

“[Cargo Cove Fulfillment CEO Robert McFaul] and his team are committed to providing great customer service, so it already feels like an incredibly natural integration, ”said Aaron Rubin, Founder and CEO of ShipHero. “On top of that, the location allows us to do even more for our customers. We will now have a dedicated team that can reach Florida and much of the Southeast the next business day. “

Cargo Cove Fulfillment was founded in 2017 and has since shipped over a million orders. The company offers a range of services, including picking and packing, order fulfillment, inventory management, product sourcing, assembly, picking and returns management. Cargo Cove Fulfillment customers will join ShipHero’s order fulfillment service.

The acquisition is ShipHero’s first since it raised $ 50 million in June in a funding round led by Riverwood Capital, which valued the company at around $ 225 million. This money came after ShipHero saw remarkable revenue growth of $ 30 million on a budget of just $ 435,000 raised by family and friends.

Read: ShipHero raises $ 50 million to expand its electronic communications processing network

To read: Ohi wins $ 19 million for delivery in less than 20 minutes

ShipHero’s two main value propositions are its Software as a Service (SaaS) and its e-commerce order fulfillment platform. The company’s SaaS offering consists of a TMS for e-commerce businesses that ship packages and a warehouse management system for customers who manage their own inventory. It is expected to handle nearly $ 10 billion in gross merchandise value this year. The service represents approximately $ 13 million of ShipHero’s annual revenue.

The company’s ecommerce execution platform works a little differently than the standard model. Customers deliver their products to a single ShipHero facility and pay a flat rate to have the company deliver anywhere in the United States within two days. It then moves inventory in small shipments to one of its nine facilities and fulfills orders from there. The execution side of the business represents annual revenue of approximately $ 20 million and the business continues to expand its warehouse network.

ShipHero’s customers include notable names like Mars, Universal Music Group, and Canadian Tire.

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