71lbs

71lbs is a shipping cost management company that assists small and medium-sized businesses in minimizing shipping expenses through various services designed to secure refunds and negotiate better rates with carriers. 71lbs, headquartered in Fort Lauderdale, US, specializes in shipping cost management for small and medium-sized businesses. Founded by Jose Li, the company has pivoted towards maximizing savings for its clients. In June 2014, 71lbs raised USD 2.

000 mn in an Angel funding round from IDEA Fund Partners and Tamiami Angel Fund, marking its first significant investment. 71lbs specializes in providing shipping cost management services, primarily targeting small and medium-sized businesses (SMBs). Their core offerings include Late Delivery Refunds, Contract Negotiations, Shipping Insurance, Lost & Damaged Claims, and Discounted Shipping. These services help customers achieve savings of 10% to 35% on shipping costs by leveraging insights from over USD 1 billion in shipping data to negotiate better agreements with carriers such as FedEx and UPS.

Their services are primarily available in the United States, addressing challenges SMBs face in securing favorable shipping rates. The revenue model for 71lbs is contingency-based, meaning they charge a percentage of the savings generated for their clients rather than upfront fees. This structure aligns the interests of the company with its clients since 71lbs earns revenue only when it successfully identifies and recovers owed refunds or negotiates cost savings. Clients typically consist of businesses that regularly utilize shipping services, focusing on identifying and filing claims for late deliveries and disputes over lost or damaged items, particularly in the SMB sector.

In the near term, 71lbs plans to expand its service offerings by developing new products that enhance shipping cost management capabilities for its clients. The company is also targeting geographic expansion into additional markets in North America and intends to fully utilize the USD 2. 000 mn raised in Angel funding to support these initiatives. The funding will be instrumental in enhancing their technological capabilities and marketing efforts aimed at reaching a broader audience by the end of 2015.