Sustainability Analysis: Shippit's Business Model

Shippit, a start-up company, aims to provide excellent customer service by offering both online and offline platforms for easy access. The company uses various channels to deliver its postal services to retailers, with a focus on building good customer relationships. Shippit's revenue streams come from the provision of packing and shipping services, while its cost structure is based on fixed and variable costs. The company has identified sustainability factors such as designing an accessible internet platform, creating engaging content, and reducing external issues. Success factors include investment in R&D, partnerships with retail giants, and customer orientation and retention. To improve its business conditions, Shippit can focus on improving its digital platform, creating attractive e-commerce contents, and providing real-time tracking of shipments.

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Business Evaluation: Shippit 1
Exceutive Summary
The report evaluates the business structure and the sustainability factors of Shippit
company, a start-up business in Australia. In addition the business model of the comny has been
represented using the Osterwalder & Pigneur Canvas. The report focus on 9 major blocks of
blocks business model canvas models along with an in depth analysis of the interrelationships
among these blocks.

Business Evaluation: Shippit 2
Table of Contents
Introduction..........................................................................................................................1
Business Description...........................................................................................................1
Osterwalder & Pigneur Canvas...........................................................................................1
Key Partners.....................................................................................................................1
Key Activities..................................................................................................................2
Key Resources.................................................................................................................2
Value Propositions...........................................................................................................3
Customer Relationship.....................................................................................................3
Channels..........................................................................................................................3
Customer Segments.........................................................................................................3
Revenue Streams.............................................................................................................3
Cost Structure..................................................................................................................4
Interrelationship of Nine Blocks of Osterwalder & Pigneur Canvas..................................4
Sustainability Factors of Shippit..........................................................................................5
Success Factors....................................................................................................................5
Investment in R&D..........................................................................................................5
Partnership with Retail Giants.........................................................................................6
Customer Orientation and Retention...............................................................................6
Recommend Changes..........................................................................................................6

Business Evaluation: Shippit 3
Improvement in Digital Platform.....................................................................................6
Content Creation- E-commerce platform........................................................................7
Cloud-based Tracking Service.........................................................................................7
Conclusion...........................................................................................................................7
References............................................................................................................................8

Business Evaluation: Shippit 4
Introduction
This research report involves a complete evaluation of the business model of Shippit, a
web-based logistics platform in Australia. The report focus on 9 major blocks of blocks business
model canvas models along with an in depth analysis of the interrelationships among these
blocks such as the revenue stream, key activities, key partners, key resources, customer segments
cost structure, value propositions, customer relationships, and the suppliers.
Business Description
Headquartered in New South Wales, Australia, Shippit is a web-based logistic platform
that provides parcel delivery service for retailers (Business Insider Australia, 2016). The
company has hold in a deal with the Australian Post to add the largest delivery service of the
nation to its network. In addition to this, the company has partnered with retailers to offer
flexibility in the delivery option they can offer,. The co-founder of the company is Robert
Hango-Zada, who aims to add an “‘Uber-like” experience for the clients (Business Insider
Australia, 2016).
Shippit offers both standard and express post delivery service thereby making it easier as
well as safer for the clients to use the services offered by the organization both online and in-
store which is highly backed by advanced cyber proficiencies. The company aims to provide
excellent postal service to its clients with excellence in power based cloud shipping.
Osterwalder & Pigneur Canvas
Key Partners
The key partners of the company are the major retailers (Owler, 2019). These are:

Business Evaluation: Shippit 5
 Sephora
 Temple Webster
 Kathmandu
 General Pants Co.
 CUE
 Cotton: On
 Magento
 Neto
Key Activities
In terms of key activities, the company aims to provide excellent shipping service with
centralized tracking service as well as provide a platform for retailers to make smarter decisions
that helps save time and money. The online postal services transform the way people send their
parcels with superior shipping platform along with exceptional carrier allocation technology.
Key Resources
It is an evident fact that a business becomes burden without key resources. Zott and Amit
(2010) emphasized that key resources are generally those resource which helps in functioning of
the business. In Shippit there are several key resources namely:
 Internal Stakeholders such as the employees, and managerial team
 The Human Resource Managers
 Website Developers
 External Stakeholders such as the suppliers of services, retailers
 Networking sites

Business Evaluation: Shippit 6
 E-commerce platforms
Value Propositions
In terms of value proposition Shippit aims to ensure that the clients are provided with the best
postal service experience (Shippit, 2019). In addition to this the organization also focuses on
maintaining quality of service at reasonable price. The primary aim of the business is to satisfy
its customers with maximum benefits.
Customer Relationship
Customers are considered as one of the most significant stakeholders (Stone, 2003).
Organizations aim to value customers the most so as to generate business and improve revenue
streams. Shippit aims to provide excellent customer service by providing both online and offline
platform for easy access. This will also help in building good customer relation as well.
Channels
The company uses both online and off-line channels for providing better postal services
to the client base (Shippit, 2019).
Customer Segments
The customer segments of the company include the retailers who generally ship their
products from one place to another(Shippit, 2019). The company provides powers delivery
service for numerous retailers throughout Australia with thousands of deliveries each month.
Revenue Streams
The main revenue stream of the business is through the provision of packing and shipping
service (Shippit, 2019). The web-based business has captured huge market in the Australian
territory and aims to generate revenues from every corner of the nation.

Business Evaluation: Shippit 7
Cost Structure
The management team aims to keep the prices of service as low so as to maintain a
competitive edge in the market. However, cost is based on summation of both fixed and variable
costs so as not to face loss in business.
Interrelationship of Nine Blocks of Osterwalder & Pigneur Canvas
The nine blocks as coined by Osterwalder & Pigneur, helps in evaluating the business
structure and model adopted by an organization. Each of these nine blocks is interrelated to each
other in one of more ways (Osterwalder & Pigneur, 2010). For Shippit, it can be said that the
objective of the organization is to increase digital experience by means of providing packing and
shipping services to the retailers. Moreover, the organization, being a start-up has set the pricing
structure in such a manner that is appropriate for penetrating the market as well as to gain
competitive advantage. Though the prices are kept below the market level, however, the quality
proposition of the services have been awarded many a times.
The above strategy would help the management to ensure long term sustainability in the
industry, despite the fact that there are already string competitors in the market. In addition to
this, these nine blocks helps in bringing together the key aspects that must be taken into account
before making any business decisions, which as result leads towards business sustainability as
well as growth of the company. The revenue streams have been well identified so that it becomes
easier to maintain a balance between the cost structure and revenues.
On the part of customer’s segmentation, it can be said that Shippit company aims to offer
its services to different retailers so as to increase their revenue, without compromising with the
quality. This ensures value proposition as well as help maintain good customer relation.

Business Evaluation: Shippit 8
Therefore, it is proven that the nine blocks of Osterwalder & Pigneur helps in understanding the
business model and structure of an organization (Osterwalder & Pigneur, 2010).
Sustainability Factors of Shippit
It is essential for a business to identify the sustainability factors what would affect the
present as well as the future business prospects (Tur-Porcar et al, 2018). The sustainability factors
that must be taken into consideration by the management team of Shippit are as follows:
Designing- it involves designing the internet in the right way that is accessible, efficient, future-
friendly, as well as powered by renewables.
Content Creation- The contents should enable the customers to easily approach the services of
Shippit.
Reducing External Issues- The organization must also take into consideration the environmental
factors which would be in loved in packaging and shipping of the items through different
channels.
Success Factors
The factors that would help the company reach its target objectives have been described
below:
Investment in R&D
It is an evident fact that most of the businesses all around the world are operatizing in a
perfectly competitive market. There are a number of rival company’s providing similar services

Business Evaluation: Shippit 9
as Shippit. Thus, investing is research and development programs for denying the opportunities
that would shape the business prospects in the long term would be essential for the business.
Partnership with Retail Giants
Higher the number of retailers approaching the company more would be the demand of
the business. This in turn would increase the revenue streams as well as the bottom line of
Shippit.
Customer Orientation and Retention
Better the quality of service at reasonable price, the higher would be the chances to attract
and retain the customers. The higher the number of clients, the greater would be the business for
the organization.
Recommend Changes
The company, being a start-up, has been able to establish its business in the Australian
territory in an effective manner. However, there are few changes that would be suggested to the
management so as to improve its business conditions and ensure sustainability in the long run.
Improvement in Digital Platform
The digital platform of Shippit is no doubt a good one, however changes with regard to
the appearance of the major services and its accessibility must be improved so as to attract more
clients

Business Evaluation: Shippit 10
Content Creation- E-commerce platform
The company has put forward the required number of blogs and testimonials, but then
again, it would be essential for the management to create more attractive e-commerce based
contents that is lucrative to the customers.
Cloud-based Tracking Service
As the company provides packing and shipping services to the retail customers, it would
be crucial for the customers to easily track their parcels and the time of delivery. Though the
company has cloud based service for tracking and navigation, it would be essential to provide
real-time tracking of the items dispatched and delivered.
Conclusion
The report evaluates the sustainability actors, critical success factors as well as the
business structure of Shippit. From the above analysis it can be understood that the company
follows a basic model of e-commerce digital postal services by providing both online and offline
business to the retailers. The business model canvas has been prepared based on the structure,
along with few recommendations for successful attainment of objectives.

Business Evaluation: Shippit 11
References
Business Insider Australia (2016). This startup wants to fix Australia Post's biggest problem.
Retrieved from https://www.businessinsider.com.au/this-startup-wants-to-fix-australia-
posts-biggest-problem-2016-3.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. New Jersey:John Wiley & Sons.
Owler (2019). Shippit. Retrieved from https://www.owler.com/company/shippit.
Shippit (2019). About us. Retrieved from https://www.shippit.com/about-us/
Stone, M. (2003). SME e-business and supplier-customer relations. Journal of Small Business
and Enterprise Development, 10(3), 345-353.
Tur-Porcar, A., Roig-Tierno, N., & Llorca Mestre, A. (2018). Factors affecting entrepreneurship
and business sustainability. Sustainability, 10(2), 452.
Zott, C., & Amit, R. (2010). Business model design: an activity system perspective. Long Range
Planning, 43(2-3), 216-226.

Business Evaluation: Shippit 12
Appendix 1
Appendix 1: Nine blocks of Osterwalder & Pigneur
Key
Partners
1. Sephora
2. Temple
Webster
3. Kathmandu
4. General
Pants Co.
5. CUE
6. Cotton: On
7. Magento
8. Neto
Key
Activities
 Online and
offline postal
service to the
people of
Australia
Value
propositio
ns
 Ensuring
high
quality
postal
 service
Custo
mer
relationships
 online
and
offline
services
Customer
Segments
 Retailers
Key
Resources
 Employees
 Managers
 Stakeholders
 Suppliers
Channel
 Own
channels
Cost Structure
 Penetration cost structure
Revenue Streams
 Services of Packaging and
Shipping