Logistics leader Veho and shipping platform Shippo have expanded their partnership to provide 2-5 day premium delivery to over 300,000 e-commerce brands, empowering businesses to compete with Amazon-level service while reducing costs. The collaboration, announced today, is projected to handle 3.4 million annual Shippo orders through Veho’s network—equivalent to 65,000 weekly deliveries—and targets mid-sized brands seeking affordable, reliable alternatives to traditional carriers like FedEx and UPS.
Key Features and Benefits
The new Premium Economy service, launched by Veho in January 2025, complements its existing two-day delivery offering. Key advantages include:
- 99% on-time delivery rate and 4.9/5 customer satisfaction score
- 71% fewer delivery-related refunds and 41% increase in customer lifetime value
- Simplified label creation, address validation, and hassle-free returns via Shippo’s platform
- Competitive pricing for 2-5 day shipping across Veho’s 50 U.S. markets, serving 113 million Americans
“E-commerce brands care most about delivery cost, reliability, and experience,” said Deborah Surrette, Veho’s…
Chief Commercial Officer. “Our network was built to provide the best results for businesses, turning shipping from a cost center into a value driver.” Strategic Impact on E-Commerce The partnership addresses a critical pain point: 30% of consumers abandon carts due to poor delivery options (2024 Baymard Institute Study).
By integrating Veho’s logistics into Shippo’s platform, brands gain access to: Real-time shipping rates and automated international paperwork Proactive tracking updates to reduce customer service inquiries Seamless carrier management, eliminating technical complexities Laura Behrens Wu, Shippo’s CEO and co-founder, emphasized the broader vision: “This collaboration gives our clients a competitive edge.
It’s about enabling them to meet modern consumer expectations while focusing on growth, not logistics.” Market Context and Growth Trajectory Veho’s expansion with Shippo builds on its partnerships with major retailers like Sephora, Zara, and Lululemon, while Shippo’s platform already processes 200 million parcels annually.
The move aligns with the $1.2 trillion global e-commerce market, where delivery experience directly impacts brand loyalty. Analysts note that…
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