Allpacka: Aiming To Revolutionize The Parcel Delivery World

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Allpacka is already present in three Eastern European countries, proving their business model is scalable. Colin Snead explains how he came up with the comparison platform for shipping prices and how the startup plans to expand:

Describe in 50 words or less.

Allpacka is an online platform allowing users to compare shipping prices from global courier companies, users can save up to 70% on their shipping!

How did you discover the need for the online parcel service? What problem are you solving?

At my first startup we specialized in the sale and distribution of spare parts for commercial vehicles like buses and trucks. Not very sexy for sure, but as the company grew rapidly, and our shipping volumes got higher, we started to get bigger and bigger discounts from the courier companies we worked with. Our prices got so good, it wasn’t long before some of our customers and suppliers asked if they could use our account number to ship their own packages. This added to the shipping volume, we got even higher discounts and BAM… we realized that this was a standalone business model.

So the problem we solve is really simple, we make premium parcel delivery with global couriers affordable for small and medium sized businesses that don’t have a large enough shipping volume to get big discounts directly from the courier companies.

In what ways do you measure your success and how do you make sure you don’t lose track?

For us it is important to create a sustainable business! We’re not just purely focused on user number, but also on the revenue and gross margin. The cost of entry into this market is quite low, and as a result we have to innovate using the latest technologies to ensure that we are one step ahead of competition. I would say we’re as much a technology company as we are an e-commerce platform.

Bootstrapped or financed: What fuels Allpacka now and what will in the future?

We bootstrapped the hell out of the business to begin with, and launched the company on just 1800 Dollars. With the rapid increase in orders, we quickly realized that we were going to need more cash for development, so I sold my previous startup, and used the money to fund the next stage of growth. In July 2015 we received 750.000 Dollars to expand into the surrounding countries and we’re now present in Hungary, Romania, Slovakia and we’re planning a big launch in the Czech Republic soon.

With ferocious competition and a booming trend to build new companies: How do you make sure you don’t get lost in the shuffle?

This is a very good question; launching a startup is very in vogue at the moment, and I think the trend will continue. At Allpacka we’re really focused on what we’re doing, our value proposition, and the feedback we receive from our users. We try not to get sucked into the startup scene too much, there’s so much going on, it is really easy to get swept away by it all, and lose focus on what really counts, which at Allpacka, is to offer a service that people really want to use, and can benefit from.

Allpacka: Aiming To Revolutionize The Parcel Delivery WorldWhat do you look for in team members?

This is an easy question. Priority number one has got to be general enthusiasm for life. If the personality and vibe is right, and the individual has that skill set we’re looking for, then they’re the right fit for us. In the startup world, employees have got to be prepared to adapt quickly to the changing environment, having the right team behind you plays a big part in whether the business will succeed or fail.

Why would a talent join your team?

You can always incentivize people with share options, nice salaries and a funky work space, but what I think really matters, is when an employee really gets to contribute to our service offering, we’re an environment of idea lovers and experimenters, and we provide a playground for our employees to personally make a difference and contribute directly to how we evolve our services and as a company.

When the going gets tough, what do you do for stress relief?

You can’t beat a good old party session with your mates, it’s really easy to get caught up in the day-to-day madness of the startup world and sometimes you really need to let go of it all and get on the banter wagon with your friends. You’d be surprised how quickly they can pull you back into reality, and put everything back into perspective for you. I’d recommend at least 1 mega party per month to all startup founders out there, there’s no better therapy on the market!

What was your most memorable moment so far?

There have been so many, but the one that sticks in my mind the most is when we received the first order for Romania. It was our first new market, and when that order came in, the whole team was literally buzzing with excitement, it was validation that our business model was truly scalable, and it set the tone for our expansion into the new markets – we felt unstoppable, and we still do. The great thing is, that we’ve got so many awesome memories still to create!

What were the biggest challenges you faced building your startup?

We basically faced the same challenges that all startups encounter when starting out, but I think our biggest issue was that we were convinced our customers wanted one thing, when actually, they wanted a variation of what we were offering.

One thing we learned very quickly was that you need to listen to your customers, I think this is fundamental to making your startup a success. The biggest challenge we face now, is recruitment, finding the right people is always a challenge!

7 years from now: How did your startup change the world?

I’d like to think that Allpacka revolutionized the parcel delivery world, made parcel delivery affordable for small businesses and startups so that they could compete with the big players when it came to the cost of delivery.

I think in 7 years, we’ll still be pioneers in this industry, as we continue to innovate, by using the latest technologies to deliver the ultimate transparent, real-time online shipping solutions for our customers.

What advice would you give fellow founders for their startup?

Be prepared to adapt and mold your idea based on your users, what you often start off with is far from what your customers really want. Take advice, in fact seek advice from people that have not just launched and exited successful startups, but to those that failed, understand why, make sure you don’t make the same mistakes. Know your market, don’t lose focus on the problem you’re trying to solve, and perhaps last but not least, read, read, read… There’s so much great material out there.



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