OTW Shipping
About the Company
OTW Shipping is an eCommerce fulfillment center based in Salt Lake City, Utah. The company specializes in storing inventory for online sellers and handling the packing and shipping of their orders. It is similar to how Amazon warehouses operate but with a personal touch for smaller eCommerce brands. OTW Shipping offers tailored fulfillment services, focusing on customer care and flexibility, which differentiates it from other competitors in the crowded market.
The company’s mission is to provide best-in-class fulfillment while maintaining a personalized feel, acting as an extension of its customers’ businesses. Starting with minimal resources, OTW Shipping has expanded to occupy 20,000 square feet and employs 20 people. Despite their rapid growth, Nick and Parker maintain a strong focus on their core values of excellent customer service and operational transparency.
Idea Behind Company
The idea for OTW Shipping stemmed from Parker's experience working in a warehouse for a towel company, where he realized the simplicity of the fulfillment process. Both Nick and Parker had been friends since childhood, and though they didn't initially plan to venture into logistics, they were determined to start a business together. With Nick’s background in marketing and Parker’s experience in biomedical engineering, they brought complementary skills to the table.
After doing market research, they found that the fulfillment sector was saturated but lacked differentiation. They identified a niche market for small eCommerce businesses that often struggled with high minimums and insufficient support. By offering flexible services without these high minimums and ensuring a focus on customer service, they saw an opportunity to carve out their own space in the industry.
Creating the Company
Nick and Parker launched OTW Shipping from scratch in Parker’s garage. The initial stage involved a lot of research into fulfillment services, pricing models, and customer needs. With very little money, they couldn’t lease warehouse space right away, so they had to secure clients before they had even secured a proper workspace. Through cold emailing, social media outreach, and grassroots networking, they signed their first few clients, including a local Kickstarter and a German map company.
With those first clients on board, they managed to find a small warehouse space that already had racking and a forklift, saving them startup costs. They spent around $5,000 on legal fees, packaging materials, and software, and by staying resourceful and frugal, they managed to get the business off the ground.
Launching the Business
Once they moved into their first warehouse, Nick and Parker quickly realized the challenges of running a fulfillment center. To keep costs down, they worked with basic tools, using Parker's laptop to print labels and making their own storage bins. Their first big hurdle came when they had to front shipping costs for a large client, but a short-term loan from their families helped them manage that.
After the initial setup, they focused on refining their processes to ensure smooth operations and attract more clients. They also documented their procedures early on, recognizing that this would help them scale more efficiently in the future. Despite operating during a challenging time with COVID-19 restrictions, they were able to successfully navigate the holiday rush and began planning for future expansion.
Earnings
In their first 12 months of operation, OTW Shipping reached $1 million in revenue, shipping out over 120,000 packages. Currently, they are generating approximately $400,000 in monthly revenue, servicing over 30 clients, and preparing for further expansion. The company has invested in a larger warehouse and is hiring more employees to support its growing operations.
Nick and Parker have taken a grassroots approach to marketing, leveraging platforms like Reddit and LinkedIn to generate leads organically. By focusing on customer retention and offering personalized service, they’ve been able to maintain steady growth. Moving forward, they plan to expand into paid advertising and SEO to continue scaling their business.
