71lbs

71lbs is a logistics cost optimization platform that helps businesses recover refunds from late FedEx and UPS deliveries, negotiate better carrier rates, and access small business shipping discounts.

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Automatically recovers money from late FedEx/UPS deliveries and negotiates better shipping rates for businesses.

71lbs is a logistics cost optimization platform that helps businesses recover refunds from late FedEx and UPS deliveries, negotiate better carrier rates, and access small business shipping discounts. Founded in 2012 as part of Chicago's Excelerate Labs accelerator, the company has grown to serve over 5,000 clients, recovering more than $80 million in shipping refunds to date. Its model is contingency-based, charging clients only when savings are realized, which appeals to cost-conscious SMBs.

The company analyzes over $1 billion in annual shipping data to benchmark rates and identify refund opportunities, claiming average savings of 10-35% for clients. Recent expansions include third-party shipping insurance, typically priced 20-40% below carrier-offered declared value coverage. While headquartered in the U.S., the company does not disclose exact employee count or revenue figures. Its value proposition centers on automating the recovery of what it estimates is $2 billion annually in unclaimed late delivery refunds from major carriers.

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Who buys this

  • E-commerce businesses shipping physical goods
  • Small-to-medium manufacturers with regular outbound shipments
  • B2B distributors managing logistics costs
  • Subscription box services with time-sensitive deliveries
  • Healthcare/medical suppliers shipping perishable items

Publicly disclosed clients

  • BloomsyBox
  • MIA Shoes
  • KTA Corp

Strengths and what to watch

Strengths

  • Contingency pricing model (no upfront costs) lowers adoption barrier
  • Deep expertise in carrier contracts and refund policies
  • Automated tracking of thousands of shipments for late deliveries

Watch for

  • Dependence on carrier policies that could change unilaterally
  • Limited public data on client retention rates
  • Concentration risk with only two major carrier partners (FedEx/UPS)

Key Information

Founded
2012

Frequently Asked Questions

What does 71lbs do for businesses?

71lbs automatically recovers refunds for late FedEx/UPS deliveries and negotiates better shipping rates for businesses. The platform analyzes shipping data to identify savings opportunities, helping over 5,000 clients recover $80+ million since 2012. It works on contingency, charging only when savings are achieved.

How do I get refunds for late FedEx or UPS shipments?

71lbs automates late delivery refund claims by tracking shipments against carrier guarantees. The service handles documentation and filing, recovering an estimated $2 billion in unclaimed refunds annually. Businesses typically see 10-35% savings without upfront costs, as fees are contingency-based on successful recoveries.

Can small businesses negotiate better UPS shipping rates?

Yes, 71lbs specializes in negotiating improved UPS and FedEx rates for SMBs. By benchmarking $1 billion in annual shipping data, they secure volume discounts typically reserved for larger enterprises. Their contingency model means businesses pay only when better rates are successfully negotiated.

Is shipping insurance cheaper through third parties?

71lbs offers third-party shipping insurance priced 20-40% below carrier-declared value coverage. This complements their refund recovery service, particularly for e-commerce and healthcare shippers with time-sensitive deliveries. Insurance savings stack with their late delivery refunds and rate negotiation services.

What types of businesses use 71lbs?

E-commerce retailers, manufacturers, B2B distributors, subscription box services, and medical suppliers commonly use 71lbs. Clients like BloomsyBox and MIA Shoes benefit from automated refund recovery and rate optimization for time-sensitive or high-volume shipments where logistics costs impact profitability.

How does 71lbs make money?

71lbs operates on a contingency fee model, charging clients only when they successfully recover refunds or negotiate savings. Founded in 2012 through Chicago's Excelerate Labs, the company has grown by eliminating upfront costs while delivering verified shipping cost reductions for thousands of businesses.

Sources

  1. 71lbs.com — Core product offerings and client metrics
  2. 71lbs.com — Carrier rate negotiation methodology
  3. 71lbs.com — Insurance product details
  4. techcrunch.com — Accelerator background