Tech-Driven Fulfillment to Match Marketplace Giants: Cubbo

Cubbo is a Latin American technology company that fulfills e-commerce orders for direct-to-consumer brands.

Q: What are the main benefits clients gain by using Cubbo instead of managing their own fulfillment operations?

A: As with any logistics company, the key advantage is economies of scale. When brands manage logistics in-house, it is usually not their core competency. It can be expensive and inefficient, leading to customer complaints. Working with Cubbo means leveraging our operational expertise. We are 100% specialized in e-commerce logistics. We offer two main benefits: service and potential cost savings. We sell a service that ensures everything that happens after the customer clicks “buy” works seamlessly.

Transparency, visibility, and trust are central to our fulfillment model. We work with over 200 clients, and our goal is to ensure their operations run efficiently. Service is the foundation of everything we do.

Q: What is Cubbo’s value proposition for businesses? 

A: Cubbo is a fulfillment company, a logistics operator specialized in e-commerce. What we do every day is level the playing field so that all retailers can access the same logistics infrastructure that large marketplaces use.

There is a gap between what a direct-to-consumer (D2C) business can offer versus what a marketplace can. What we aim to do is narrow that gap so that there is no difference in the shopping experience between the two. That way, the consumer retains the power to choose. About 90% of our sales are through D2C, where we also offer omnichannel inventory management. The remaining 10% comes from marketplaces.

Q: What logistics capabilities allow Cubbo to close that gap between marketplaces and D2C operations?

A: Consumers shop on marketplaces for many reasons. First, they tell them exactly when the order will arrive. Second, they provide visibility that allows them to easily track their order. Third, people return because they trust the platform. If something goes wrong, they will respond and resolve it.

Cubbo replicates that same experience for D2C brands. It all comes down to one thing: building trust. Trust through visibility, through tracking, through responsiveness. 

Q: How does Cubbo’s platform enhance visibility for its clients?

A: We serve over 200 clients, and they can monitor their operations through Cubbo’s proprietary technology. We enable clients to see the status of each order, process, and SKU in real time. Our Order Management System (OMS) integrates with all digital sales channels and orchestrates the entire order process, pulling in orders, pushing them into the fulfillment process, and managing inventory across every channel. These channels can include Amazon, Mercado Libre, Liverpool, Coppel, Elektra, TikTok Shops, and D2C platforms like Shopify or VTEX.

Apart from OMS, we have a Warehouse Management System (WMS) that handles everything inside the warehouse. We also have a robust Transportation Management System (TMS) that integrates with over 10 carriers across Mexico and uses an algorithm to optimize the best carrier for each delivery based on speed, reliability, and cost.

Q: What role does data play in Cubbo’s logistics and fulfillment planning?

A: We train our optimization algorithms using historical data from over 5 million orders. This allows us to improve routing, anticipate traffic conditions, and make our entire fulfillment chain more efficient. Planning based on data is critical for performance and cost control. To ensure reliable fulfillment at scale, we coordinate closely with both technology partners and logistics providers. This cooperation allows us to improve delivery consistency and plan ahead for volume fluctuations.

Q: What benefits will clients get from Cubbo’s recent collaboration with TikTok Shop?

A: TikTok Shop launched with Cubbo as its fulfillment partner. This partnership reflects a shift in how e-commerce is handled, as entire transactions now stay within the app. Consumers do not have to leave TikTok to make a purchase, which improves user experience and has led to higher conversion rates.

Q: How will Cubbo consolidate its presence in Latin America, and what are its main business goals for the rest of the year?

A: We operate in Mexico and Brazil. These two countries represent about 80% of the e-commerce market in Latin America. They are the largest and most developed markets, apart from Argentina. Expanding into more countries adds complexity, so our strategy is to focus on excelling in these two key markets rather than spreading ourselves too thin.

Our priority is to continue growing while remaining profitable. Unlike many tech companies, we do not depend on venture capital rounds. Our business is already profitable, and our strategy focuses on sustainable growth.