34% of startups fail due to lack of product-market fit. Learn how to avoid it for only $15!

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

This is Brought to You by:
Headway

We help startups launch new digital products through product strategy, design, and development.

This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

Subscribe to Our Newsletter!

Invite us into your inbox and get immense learning and 80+ deals on tools to help you scale your startup (worth up to $50,000)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Shipbeat

Shipping API for e-commerce companies

General Information
Category
e-Commerce
Country
Denmark
Started
In 2014
Business Failure
Business Outcome
Bankruptcy
Closed
By 2016
Cause of Failure
Multiple Reasons
Founders & Employees
Number of Founders
Two
Name of Founders
Joachim Rørbøl, Kenneth Svenningse
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
1
Total Funding Amount
€1.2M
Number of Investors
3
Description

Shipbeat was a location-based platform designed primarily as an aid to small to medium-sized e-commerce businesses. Shipbeat aimed to help companies deal with logistics issues while maintaining their services at the top of their game. The idea was derived from the need to have a modern and reliable service provider, which could, in turn, lead to greater savings and revenues for the online retailer. Shipbeat also wanted to make the process of delivering goods to customers more transparent and flexible.

Cause of Failure

In order to achieve a win-win situation for customers and online retailers while at the same time gain a margin profit that could cover the costs of service maintenance, few prerequisites had to be taken care of.

The major obstacle Shipbeat encountered was the unwillingness of the main shipping carriers in Denmark to cooperate with the e-commerce platform. In other words, there were few of them who maliciously tried to stop the intentions of Shipbeat to reduce the overall logistics costs by re-selling what they initially had to offer.

The other serious problem they had to face, was when Shipbeat tried to expand their logistic services in other market areas. They had difficulties while trying to integrate a new set of carriers into their operations since forming new partnerships was often a negation heavy and slow process and they had not enough influence or user base to gain the full attention of critical carriers in new regions.

Moreover, from the technological and logistic side, any big or minor change often created an additional hustle for all parties involved, from the carriers to the customers as well as potential warehouses.

After the idea of reaching out to a shipping broker as a possible solution failed, the company declared bankruptcy.

Go on Reading

Sunrise

Calendar app for mobile and desktop

Productivity
Acquired
$8.2M
Bad Business Model
Productivity
France
In 2012
By 2016
Two
Between 11 And 50
Between 1M 10M
Bad Business Model
Acquired
Theranos

Consumer healthcare technology company

Health
Shut Down
$1.4B
Legal Challenges
Health
United States
In 2003
By 2018
One
Between 11 And 50
More Than 50M
Legal Challenges
Shut Down
Zulily

Online retailer that offered daily deals

e-Commerce
Shut Down
$194.6M
Bad Marketing
e-Commerce
United States
In 2009
Active
Two
Between 1001 And 5000
More Than 50M
Bad Marketing
Shut Down
Rdio

Digital music service provider

Music
Bankruptcy
$125.7M
Competition
Music
United States
In 2008
By 2015
Three
Between 51 And 100
More Than 50M
Competition
Bankruptcy
Admazely

Easy-to-setup retargeting for web shops

Marketing
Bankruptcy
$600K
Lack of Funds
Marketing
Denmark
In 2011
By 2013
Four
Between 1 And 10
Less Than 1M
Lack of Funds
Bankruptcy
BitPass

Online payment system for digital content

Finances
Shut Down
$13.3M
Competition
Finances
United States
In 2002
By 2007
One
Between 51 And 100
Between 10M 50M
Competition
Shut Down
This is Brought to You by:
Headway
Headway

We help startups launch new digital products through product strategy, design, and development.

Acadium
Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!).

This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

Subscribe to Our Newsletter!

Invite us into your inbox and get immense learning and 80+ deals on tools to help you scale your startup (worth up to $50,000)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.