– Case Study –

SPS Commerce & ShipStation: A Success Story

  • Company Type:
    Solution Provider
  • Industry:
    Shipping / E-commerce
  • Headquarters:
    Austin, TX
  • SPS Product:
  • Partner Since:

Executive Summary

E-commerce merchants’ multi-channel strategies start with an online store and expand into marketplaces. Eventually, their products are noticed by established retailers. Many of ShipStation’s customers operating at this scale asked for EDI capabilities to drop ship with retailers like Walmart. ShipStation considered building an app to deliver the EDI functionality—but found the complexities daunting. Instead, they partnered with SPS Commerce in 2017. This was after several retailers kept recommending them as their preferred drop-ship EDI provider. Today, the joint solution is helping merchants fulfill millions of orders with ease.


The Challenge:

Support merchants with multi-channel strategies, especially drop shippers.


The Solution:

Integrate ShipStation and SPS Commerce Fulfillment for EDI compliance.


The Results:

Completing millions of e-commerce orders and shipments on behalf of customers.


Increasing Customer Value

Merchants are always looking for new retail trading relationships. This is especially true for large retailers like Target and Walmart. Once merchants form these relationships, they want to act quickly to start selling and shipping. ShipStation, the shipping software of choice for e-commerce retailers, wanted to help its customers quickly comply with one of the primary trading requirements of retailers: EDI. They began looking for an EDI solution that could integrate with ShipStation. Keeping the user experience streamlined while providing the retailer connections needed was necessary.

ShipStation’s criteria for an EDI partner started with finding a well-known and respected provider in the industry. They also wanted a solution provider that had retail expertise. Luckily, SPS Commerce has relationships with hundreds of retailers. Lastly, ShipStation wanted their customers to only connect to the EDI solution once. And adding a new retailer would be almost as simple as flipping a switch.

“Our customers wanted an EDI partner that knew retail and had ongoing retailer relationships so they could be confident about compliance,” said Kevin Kline, Channel Account Manager at ShipStation. “SPS Commerce exceeded all of our criteria and allows our customers to say ‘yes’ when retailers ask them if they do EDI. This relationship has been a big win for our customers and ShipStation.”

Automating E-Commerce

E-commerce requires moving order and shipping data across companies at top speed with no impediments. When deliveries are expected either same-day, next-day, or two-day, there is no time for delays.

ShipStation and SPS created a seamless integration between their EDI and shipping solutions. The SPS technology team developed the connection using published APIs and technical documentation from ShipStation.

“The system automation built by SPS to integrate with ShipStation was done by a team of talented experts who were fully self-reliant,” said Kline. “The work was completed in a short period of time and our customers have been delighted with the results ever since.”

As soon as they entered our partner ecosystem, SPS Commerce has been a great partner! The relationship has only grown through our joint efforts to incorporate EDI into the shipping and logistics space to help merchants fill the gap of scaling their fulfillment processes. They’ve been great to work with and we’ve done a lot of great things together.
– John Kinny, GM, ShipStation 

Driving New Drop-Ship Business

The ShipStation and SPS partnership goes well beyond integrating technologies. Teams from both organizations have delivered informative webinars, presented at industry events, and attracted new customers. Suppliers see the value in using automated solutions, especially drop shippers.

“Our sales and marketing teams have worked together to bring the joint solution to many new manufacturers and worked diligently to showcase the value to a customer,” said Kline. “SPS brings the retailer relationships and ShipStation brings the carrier relationships, it’s a complete package that can automate drop-ship and traditional order processes to support multiple retail channels.”

Drop ship is one of the fastest-growing e-commerce trends. However, it requires many parties to work together and share data for small package orders. This market is ideal for the automation brought by the SPS and ShipStation solutions.

“Drop-ship suppliers need to receive orders, pick and pack products, and ship small orders in record time while keeping the retailer apprised of progress,” said Chrissy Mathison, Vice President of Sales at SPS Commerce. “Without EDI and shipping solutions that talk to one another, this process is ripe with risk. Our partnership with ShipStation offers drop shippers a solution built for their fast-paced environment where speed is essential and errors are not tolerated.”

Related Content:

Related Content:

Looking to streamline your e-commerce operations? ShipStation and SPS Commerce's integrated solutions make it easy.

Learn More