Wayflyer was founded to help eCommerce businesses grow and break through the barriers they face as they scale. We started with our Funder product, offering flexible funding to eCommerce founders at the best rates.
But we’re all too aware that access to funding isn’t the only challenge causing headaches and keeping founders up at night.
Freight costs have skyrocketed in recent years, and financially eCommerce brands are feeling the pinch.
Data from Drewry shows that the price of a 40ft container has risen from under $2,000 in November 2019 to more than $7,500 in June 2022. (Prices peaked at over $10,000 in September 2021.)
This rise can be explained quite simply: eCommerce has taken over the world.
In 2021, eCommerce accounted for an estimated 19.6 percent of retail sales worldwide, up from 13.6% in 2019, and forecasts indicate that by 2025, eCommerce could make up close to a quarter of global retail sales.
With more consumers buying more products, demand for sea freight is outpacing shipping container availability causing this steep rise in costs. For growing eCommerce businesses, the cost of freight has a significant impact on cash flows and margins.
The next step in our mission is to help eCommerce brands solve the freight challenges that are slowing down growth and rescuing margins. To do this, we’re launching Wayflyer Shipper — a new product offering we’re currently testing with a range of eCommerce brands.
In the messy world of eCommerce supply chains, Wayflyer Shipper exists to simplify inventory shipments and reduce costs for fast-growing businesses.
We’ve created a network of reliable, best-in-class freight forwarders that we work with to source shipping prices for our customers. By negotiating rates on behalf of our customers as a whole, we can leverage our network and the aggregated volume of goods to unlock more affordable prices that individual brands would be unable to negotiate on their own.
Wayflyer Shipper customers will also have access to our tracking dashboard enabling complete visibility of every part of the freight process — from delivery at origin port and its journey at sea, all the way to destination delivery and delivery to your warehouse. This reduces headaches and time spent chasing up shipments, giving you more time to focus on growth.
“Before using Wayflyer Shipper our approach to Freight shipping was disjointed and there were too many players involved in the process."
“Before using Wayflyer Shipper our approach to Freight shipping was disjointed and there were too many players involved in the process,” explains Oliver Shurville, Founder and CEO of TentBox, an early Shipper customer.
Freight remittance terms aren’t friendly for eCommerce brands – even if you manage to negotiate and get a great deal from your freight forwarder, you’ll still have to pay freight costs in full before your inventory is in your warehouse ready to sell.
With Wayflyer, you can combine our Shipper and Funder products to lower the impact freight orders have on your cash flow. So instead of paying for 100% of your freight costs upfront, you can use revenue-based financing to boost your cash flows, leaving more of your existing cash available to fuel growth.
“The fact that we can streamline our freight shipping process and avail of Wayflyer’s extended remittance terms adds immense value.”
This approach has already helped TentBox to free up its cash flow. “Typically, we send around 50 containers/year, and with increased freight costs, this is over half a million dollars in additional cash flow we needed to find,” says Oliver Shurville. “The fact that we can streamline our freight shipping process and avail of Wayflyer’s extended remittance terms adds immense value.”
The core of our mission has always been to help eCommerce businesses scale more effectively and Shipper is another step in our journey. If you are an eCommerce business looking to reduce freight costs and admin time, let’s chat about how we can help.