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EasyPost Insider: Introducing Luma, the Ultimate AI Advisor With Joe Dieter From EasyPost
Episode 5525th February 2025 • Unboxing Logistics • EasyPost
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Coming up on today's episode

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... It's the ultimate AI advisor at your fingertips that has been trained on

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billions of historical shipments.

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Keep in mind, it's seen every scenario.

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It's like if you had a consultant walk into your office and say, yes, I have seen every kind of

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possible shipment that has gone out the door across every possible carrier and service level.

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And so I know your situation.

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I know you more than you know you, and here's how you're going to do a better job tomorrow.

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Welcome back to Unboxing Logistics.

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So glad to see our Unboxing Logistics family again.

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Today is a fun special episode.

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You know them, you love them.

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It's one of our EasyPost Insider episodes.

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And this one, okay, you all know me and I get way excited about things.

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But I am so freaking excited about today's episode.

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We just recently launched the best, most amazing, exciting new tool, EasyPost Luma.

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And I have brought on Joe Dieter, our amazing product marketing manager here, to give

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you all the insider info on what Luma is.

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But I wanted to start, since this is all about a product, I wanted to dive straight

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into, Joe, can you tell us, what is EasyPost Luma, why should people care, high level,

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and then we'll get into the details later.

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So Luma is three things.

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Luma will give you the best and actionable insights on how you're shipping.

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So you want to know how your different carriers and service levels are performing.

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How, what is the cost per package?

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What is the average time in transit?

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Why are shipments delayed?

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Why are shipments not showing up where they should be showing up?

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It's going to give you a look at how things are going today.

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How are you performing today in your shipping operation?

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The second thing Luma does though, is it looks at how to be better tomorrow.

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It gives you a better version of shipping tomorrow by making really specific recommendations.

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Looking at how you've been shipping recently, you could save up to 20 percent on your

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shipping costs if you made a switch over to this carrier or this service level.

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You could actually save time in transit if you made a switch and this way.

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So really clear recommendations through this like AI advisor at your fingertips.

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The third thing Luma does is it takes those recommendations and that playbook

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for better shipping and then automatically purchases shipping labels according to that

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playbook, according to those recommendations.

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And most systems don't do the second thing I mentioned.

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Most don't do the third.

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And the third is really saying, we're going to create rules based off your

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preferred time in transit, your preferred budget, your preferred carriers.

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We're going to look at the situation that's going to be the best fit for you.

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That's going to be the most cost effective, that's going to be the fastest.

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And we're going to make sure you never miss out on the best label for that.

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And this has major implications and how much you're going to spend on shipping and how much

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of a headache shipping is going to be for you.

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So we're excited.

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I'm going to stop you right there because we are talking about this amazing, highly

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anticipated, our customers have been chomping at the bit for this new product

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that has just launched at Manifest.

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If you were there at Manifest and you came and talked to us about it, you know, shout out to you.

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But, everyone was buzzing about it.

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This is EasyPost Luma.

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So, exactly what Joe's saying.

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We took all of that data.

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We had so much data.

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Oh, everyone knows how much data there is in this industry.

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There is so much information.

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And actually made it usable.

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I hear so often from people there's so much data, but I don't really know what to do with it.

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So introducing Luma.

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So Joe, let's back up a little bit.

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What is Luma?

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The first thing it is, is the most approachable shipping analytics

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platform that's ever been built.

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Now that's intense.

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That's, that's saying a lot.

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But what it does is it tells you how you're performing today when it comes to shipping.

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It allows you to hold the carriers and the service levels you depend on accountable

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by looking at really how they're doing.

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Are they delivering in the time you thought they were going to deliver?

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Are they delivering within budget?

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Are they adding new funds to price surcharges?

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The first part of Luma is called Luma Insights, and it gives you insight, it

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gives you clarity on how things are going today with how you're choosing to ship.

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So Luma Insights.

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There's another part of Luma Insights that's called Peer Shipper Benchmarking.

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This is my favorite, like, pet part of all of Luma.

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I don't know.

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I love this one.

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There's no shipping analytics or shipping insights product that's been out in this

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industry that allows you to not just say how am I doing, but how am I doing in comparison

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to people like me, to shippers like me.

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Okay, stop.

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I'm gonna say it again.

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How am I doing in comparison to shippers like me?

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Boom.

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That is the question that everybody wants to know.

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It's great to know I did 7, 8, 3, 2.

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But did my neighbor do 5, 6, 7, 8?

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You know, we've got to have something to compare our data to.

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And I freaking love that.

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So, sorry Joe, go ahead.

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I'm now the geeking out one.

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We're nerding out.

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We are nerding out a little bit here today, Joe.

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Love you guys.

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You're the best.

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That's right.

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You know, the peer shipper benchmarking thing.

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My competitors, companies of my exact size, companies doing my kind of volume.

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How much are they spending on shipping?

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What carriers and service levels are they choosing?

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How do they ship?

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Do they have some best practices I should be thinking about?

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This sort of thing just doesn't exist.

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It seems pretty basic, doesn't exist, it's powerful.

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So that's the first thing is how am I, that's it.

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Luma Insights.

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How am I shipping today?

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Now there's a second part to Luma and it's called Luma Advisor.

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And just as any good advisor would, it says, okay, we see how you're doing today.

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We have recommendations on how to do it better tomorrow.

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If we were to simulate a better future of shipping for your company, if we were to simulate more

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cost savings, better decisions, and how you get a package out the door to a happy customer,

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here's some recommendations we would make.

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So that second part, Luma Advisor is going to say, hey, based on your current data, you could

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save 20 percent on shipping if you made a switch from this type of carrier and service level

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over to this type of carrier and service level.

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Do you know you could save a couple of days in time in transit, actually,

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if you made a switch in xyz way.

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So talk about actionable insights.

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This.

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It's a simulator that helps you just kind of look at different potential scenarios.

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It's the ultimate AI advisor at your fingertips that has been trained on

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billions of historical shipments.

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Keep in mind.

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It's seen every scenario.

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It's like if you had a consultant walk into your office and say, yes, I have seen every kind of

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possible shipment that has gone out the door across every possible carrier and service level.

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And so I know your situation.

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I know you more than you know you, and here's how you're going to do a better job tomorrow.

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I love it.

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You're going to be like, okay, I need to go talk to my consultant.

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I need to be advised.

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And then you can come back and say, okay, I've, yeah, it really is

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like your own personal consultant.

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I was just reading a study.

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I love my consultants.

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I love you out there, I promise.

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But I was reading consultancy is one area where AI can kind of make some inroads because it really

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can advise you on what the best scenarios are.

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So cool.

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Simulator.

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What's, what's our third part?

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The third part is, okay, great.

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I have a expert take on how I could be doing shipping better tomorrow.

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Can I have an AI tool that just automatically ships better tomorrow?

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So in other words, could I have an AI tool, this is the third part of, of Luma.

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It's called Luma Select.

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That's going to select the best label according to my preferences, according to my needs.

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So for example, if Luma Advisor says, we recommend you make the switch over to this carrier for this

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type of shipment, Luma Select will automatically abide by that advice and purchase the right

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label every time, according to that rule.

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So with Luma Select, you can say, I want this sort of time in transit.

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I want to work with these sort of carriers.

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I want to work within this sort of budget.

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I don't want to go over this cost per label.

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And I want this degree of delivery confidence that the thing is going

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to arrive when I want it to arrive.

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And then our system, based on billions of past historical shipments, can say based on

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everything we've seen recently and in the past, we think here's going to be the right label.

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I love that because something we don't think about, one of those sort of really

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cool, interesting things we've learned and having so much data at our fingertips is

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that, you know, a carrier may give you a certain service level and say, oh, it'll

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probably be three to five business days.

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Well, billions of records show that 97 percent of the time, maybe it's in two days.

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Right?

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So then you can make that call, like, hey.

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I need to get this there in two days and there's a super high chance that it's

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going to, but I can pay this lower rate.

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So is that right, Joe?

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Am I explaining that well?

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Yes, absolutely.

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It's going to be able to look at how carriers and service levels have been doing, and it's

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going to look at what you need out of a carrier and service level and make that perfect match.

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And it's going to help you generate and choose the best label every

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time, according to your needs, right?

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That's Luma Select.

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And this is called Luma.

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In shipping, we tend to call products, very literal names, like EasyPost or "Ship" blank.

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There's a lot of.

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A lot of "Ship" something.

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Why would someone come out with a new cool AI shipping tool and call it Luma?

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Well, because right now, and this has always been the case as you know, to ship anything

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out the door, it's never been more costly.

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Shipping prices went up by over 8 percent on average last year.

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There's never been a bigger demand for speed.

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One out of two consumers expects faster delivery times than they had last year.

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You have North American major metro market consumers that expect same day

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delivery for certain types of goods.

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And the point is this, is that it's never been harder to ship.

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There's never been more darkness in the road ahead of how am I going to ship and

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not lose a ton of money and not like have a huge cost center in my shipping operation.

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Any company of any size, any seller of any size.

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3PLs of any size face this.

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Shipping is daunting.

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It's expensive.

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It's feels very manual.

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In an ever increasingly modern and tech advanced world, it still feels in some ways, archaic.

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And what Luma does is it casts light into that darkness of uncertainty.

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You finally have a clear, visible path, an illuminated path to cost savings,

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to a more efficient shipping operation.

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And by the way, like, people are going to think, did they just rehearse a really intense pitch?

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This is actually how you and I would be talking

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... I was just thinking that, Joe.

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I was just thinking, okay, you know me.

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I am not a pitcher of products.

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I am not a salesperson at all at heart.

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I love education.

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I like things that bring value to you.

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I freaking love this product.

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Joe and I can sit there and talk for hours and be like, this is so so needed and so affordable.

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Again, I feel like I'm a commercial sometimes, but so let's talk, who do you feel like

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would be the perfect audience for this?

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As we talked before, we have a vast range of shippers.

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Is there somebody who's more ideal, less ideal if they're listening today?

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Yeah, so we're looking from SMB to enterprises, you know, we work with

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12,000 shippers across the globe.

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We work with.

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The largest ones in the world.

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Every shipper of every size.

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But tiny ones, too.

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So, yeah, everybody.

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But one of the things to your question about Luma is it's approachable.

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It's, it's the, it's the best and actionable insights and automated rate selection and the

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best AI shopping tool for shippers of all sizes.

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We think from small shippers all the way up to upper mid market, even enterprise

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shippers, they're going to need this product.

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We know that there have been tools that forecast a future of how you ship more efficiently that

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had been released over the past few years.

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And we've actually seen a ton of interest in this from some of the biggest shippers in the world.

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We also see questions about this sort of experience, from mid

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market shippers and SMB shippers.

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So, I don't know if that's a clear answer.

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Probably our very smallest customers.

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If you're shipping one thing every month, you know, you probably don't need

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an AI tool to look at what's going on.

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But once you're getting to any sort of scale, it's super affordable.

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It's not expensive at all.

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And there are different tiers.

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So there are different levels.

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And if you are massive, you know, we've got even more where it could be customized and there could,

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you know, so it's not just the out of the box.

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So yeah, I would agree with that, Joe.

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And the inside baseball answer is that, listen, we know our customer.

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As I said earlier, we're very specific, you know, we're going to mid market to

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enterprise current customers that do a lot of volume through our core APIs.

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We're showing them some of the initial testing numbers.

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And to be candid, it's that over the past several weeks, had Luma already been out there,

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our core customers, we call them, or the users of our, our flagship APIs would have saved

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over 10 million dollars if they had Luma.

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EasyPost customers.

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My people, my EasyPost customers, you would have saved 10 million dollars in the last few weeks,

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the last month, if it had rolled out earlier.

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That's it's just so such a great way to take advantage of the knowledge

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we have, actually make AI usable.

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I hear that so much Joe.

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People say I, AI's really cool, but it just feels like I don't even know how to use it,

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and I don't even know what to do with it.

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And it's, that's what I love about this.

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It's really, really usable.

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It delivers.

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Those kinds of savings means it's actually an intelligent AI.

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We know intelligence is in the, is in, you know, the name AI, but most AI shipping tools,

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I don't know if they're really intelligent.

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Are they save me that much money and time?

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AI, artificial intelligence that is actually intelligent.

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And people much smarter than me who aren't marketers and salespeople,

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but are actual talented engineers.

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And, and folks that are working on machine learning, they know it's been said that

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your AI is as good as the data that fed it.

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Yeah, yeah, yeah, yeah, yeah.

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When you have the data of billions of past historical shipments,

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that means you have a good AI.

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A lot of the AI shipping tools out there haven't processed billions of shipments.

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The companies haven't either been around long enough, or they had, didn't have the most

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reliable APIs that were doing this much volume.

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And so, as we come into 2025, we're looking at everything the market did with AI

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shipping up to this point, and we respect it.

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But we also realize we had to come out with something because we had

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the most reliable shipping system.

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We had so much data.

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I love, it's like a quote, I'm gonna put up Joe Dieter.

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Your AI is only as good as the data that you have trained it on.

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I probably messed that up a little bit, but you get the idea.

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Lots of people can be like, oh, here's AI, I trained it on the last two days.

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That, that's not going to do anything.

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So yeah, those billions of shipments.

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I know I, we're going to keep geeking out.

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So I'm going to, I'm going to, I'm going to rein us in Joe.

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Let's let's dive into each one a little bit more at depth because

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I think we could geek out forever.

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Luma Insights.

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That's the first layer.

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Obviously insights makes me think visibility, parcel visibility here, that kind of thing.

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Is that what it is?

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What, what is Luma Insights?

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Give me a real world scenario.

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Shipper out there.

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What would they be doing?

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If they want to look at carrier performance today or, or up to this point, how have the carriers I

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purchased labels through, the carriers I rely on?

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How have they been doing?

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What is the average cost per package?

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What is the average time in transit?

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If I want to look at a map of the United States and see different zones of how the

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carriers and service levels I rely on, how do they perform those different zones?

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Even package level detail, all the attributes of an individual parcel package that goes out

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the door on weight and all the other factors.

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How am I performing?

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In other words, when do things go wrong?

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When do things not go as planned?

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I thought I was getting two day express shipping.

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It showed up not in two days.

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The customer is very unhappy.

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That's what we mean.

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We talk about visibility into performance or insights.

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How are you doing today?

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It's really, how are all the decisions you made in terms of who's shipping that package

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out there and the quality at which it got into the hands of your precious end customer?

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How did it perform?

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Was it up to expectations?

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Did you get bang for your buck?

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Or are you paying for expedited mythical expedited service levels, we like to call it.

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So in other words, we even work with really large shippers that have been for

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years committing to certain expedited service levels with great carriers.

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But because of their situation, all of a sudden it's revealed they have been

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overpaying for not expedited performance.

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This is very common, and this is something that Luma illuminates.

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So, with Luma Insights then, it will give you the insights into your own, I guess, how is it,

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what, how is it different than Luma Advisor?

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Let's make sure that everybody can understand.

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And then they come together.

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So in tier one, if you got a tier one package, it would include both Luma

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Insights and Luma Advisor, correct?

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Can they get Luma Insights on their own?

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Tier one is Luma Insights and Luma Select.

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Oh, and Luma Select.

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Okay, perfect.

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And the Luma Insights you get is just looking at your current shipping

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performance, how things are going.

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And there's just baseline insights, we call them.

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Really helpful insights to look at.

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How are you doing with shipping?

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Where are you losing money?

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Where are there failed shipments?

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Where are there delays?

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Looking at your carrier mix, what carriers you tend to buy labels through.

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And then you're getting that Luma Select, that ability to set rules and automatically

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purchase the right label according to your needs, according to your budget.

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But not the simulation.

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Gotcha.

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Luma tier two to your question includes Luma Advisor, those proactive recommendations.

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Hey, here's some changes we think you could make based on current data to save time and money.

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Luma tier two includes that advisor on past 30 days of shipment behavior, past 30 days of data.

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It also includes within Insights that Peer Shipper Benchmarking, you were excited about?

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Yeah, yeah, yeah, I love the Benchmarking.

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Okay, I know how I'm performing, but what does that mean?

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Like am I, am I being smart about this compared to companies like me and other, my competition?

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If I'm a seller, is the competing seller that keeps me up at night, are

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they like retaining way more profits?

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They have way more efficient shipping.

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And this is one of the main reasons sellers lose lots of money and stuff is

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that their shipping just isn't smart.

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And so this is huge.

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Peer Shipper Benchmarking, all of a sudden I have a cheat sheet.

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I know best practices for folks like me, the right way to ship.

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That's the vision with this.

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And in tier two, you get that, you get the Advisor, you get the Select.

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Luma tier three is not going to be available until this spring.

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The first two are available in early February, but Luma tier three is interesting because we're

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adding in, into Insights, warehouse insights.

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Lori, we've done some tours of warehouses.

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Oh my word, they blow my mind!

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You are amazing!

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Every time I step into a warehouse, I'm like, what is happening?

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Every warehouse is a snowflake.

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It's insane.

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Every warehouse has their exceptions and is different and it's such a, it's such a

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brave thing to oversee a warehouse because there's a million things go wrong and there's.

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But the point is this, is that there haven't been a lot of shipping analytics tools that say let's

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look at everything going on in your warehouse.

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Everything that comes into the warehouse, everything that goes out of the warehouse.

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How much you're spending on every facet of what it takes to run your warehouse.

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And let's see where we can get more efficient.

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So it's everything we did for carrier performance or, or the label.

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And it's saying, now let's look at kind of the pick and pack process of what's actually going

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on within the walls of, of where fulfillment started to happen within the warehouse.

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That's an Insights tier three.

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When, when are we thinking tier three?

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It's in the spring.

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Okay.

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Is, is what we want to communicate now.

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It's coming.

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The other part of tier three is that Select where you have a tool

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that gets the best label every time.

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It's going to have a little, speaking of ChatGPT, it's going to have your

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little ChatGPT of shipping, right?

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So an LLM, all that means is I have that trusted AI advisor that I

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can kind of have a text chat with.

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I can message back and forth in lifetime.

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I can work together with a really great AI advisor to find the best rules.

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Yes.

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Oh, great.

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I can ask questions, I can pose scenarios.

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I can say, here's just shifted.

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We have a, a new foreseen major volume coming up this peak season.

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Here's our new situation.

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We're adding in these products.

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Whatever the situation is, our vision is that you have this trusted AI advisor that you can

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have a lifetime conversation with through text, and then you together, you create the best

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rules to truly get the best label every time.

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So that's going to be in tier three.

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And there's so many different ways people talk in the world of shipping

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and even how they make decisions.

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And we think that having an LLM that starts to understand all the ways all the great

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shippers out there of all sizes talk about how they need to ship, it's going to allow

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us to really start to understand the nuanced segment of different types of shippers and

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then just even get them the more precise rules that are going to give major savings.

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It goes back to your point earlier that, you know, there are just such a diverse number of shippers.

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All of you are, are so unique.

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And what you need from, you know, an AI tool, may be slightly different.

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I love that idea of the kind of ChatGPT, chatting back and forth.

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Because again, figuring out what rules to do and what even queries to make is a huge part of AI.

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In most industries, the right query to ask ChatGPT or whatever tool you're

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using is pretty set in standard.

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There's a common language.

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Something, especially you would know because you talk with so many shipping

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and logistics veterans and experts

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... Heroes, I call you.

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Is there's a hundred different languages in the shipping industry.

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For like, even describe the five steps it takes to get an order out the door to your end customer.

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The words they use are vastly different.

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Boy, and when you start getting international and I mean, it is complex.

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So to like create a ChatGPT for shipping, one of the reasons it's been a slow journey is

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because this industry is very special and unique in that there hasn't been a common language.

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And everyone has, honestly, it's the wild west where everyone has, oh, with this

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sort of package going to this country, we apply these five extra labels.

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And then we put it in a, in this corner of the warehouse over here, and then it only goes out

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if Tim is here on Tuesday morning by this time.

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Like I'm being a little bit dramatic, but that unique nature of each individual shipper,

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you have to have an AI system that has empathy to understand, ah, I'm, I'm drawing

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commonalities in how these hundred different languages are talking the same language.

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And then we can talk with any sort of shipper and quickly understand the rules

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they need to get the best label every time.

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I get this question a lot, Joe.

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Do you need to be an EasyPost customer in order to use Luma?

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Yes.

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Well, it's interesting.

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You need to be a core API customer.

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Core API customer.

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Our flagship product, all that means is the product we are known by, the product that

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changed shipping forever, the product that our fearless founder invented when he invented

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the first restful API for shipping and gave you access to the biggest carrier network.

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All these pitch points, that product is the one you want to be a customer

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of to get Luma in the beginning.

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And, but you can be a brand new customer to us, obviously, and sign up with

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us because you want access to Luma.

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You'll just be technically also enjoying all the benefits of our core API suite as you discover

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those different APIs, and you enjoy those as well.

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That sounds perfect.

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So down the road, maybe other products expand past our flagship.

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EasyPost offers more than what we call our APIs.

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We offer enterprise grade products for highly complex shipping situations and for

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true enterprise shippers who are doing high volumes and have lots of unique use cases.

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We have SMB products.

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We have all sorts of products.

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And Luma will be accessible through some of those other products over time.

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In the beginning, it's the core API suite.

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You EasyPost customers, core API, I love you.

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This is for you.

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Awesome.

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I, you know, we've geeked out.

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We've talked about this at length, but I want to ask you, how do you see Luma really just

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sort of impacting logistics professionals.

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Is it going to change the nature of the way they work?

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Is it going to, do you see it more as a money saver, as an efficiency builder?

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You know, where do you feel like its best benefits are?

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What we know is that nine out of 10 business leaders say, I need AI to stay competitive, and

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I need AI to help with things like cost saving.

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To help with things like how long it takes to do basic tasks in my shipping and supply chain.

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We know there's credible consulting firms saying that AI and supply chain management or I'm sorry,

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AI is going to impact logistics and supply chain management by 40 billion in savings per year.

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Okay, this is something that's been floating out there.

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So to answer your question, we know the real impact is I'm going to get smarter

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about the shipping decisions I make.

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And because of that, shipping will be less of a cost center.

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I will see over time, I'm spending less of my budget on shipping.

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I'm spending less of my time on fulfilling orders and fulfilling the shipment process.

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I'm spending less of my time negotiating rates with carriers.

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I'm spending less of my time wondering why I have so many angry end customers

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because of the shipping decisions I was making, they weren't delivering as promised.

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All of the friction, in other words, all of the things that give you a little bit

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of a headache throughout your day as you.

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That turn into a massive migraine by night, Joe, come on.

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If you are one of those brave people managing a warehouse on this planet, if you're one of

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those brave people responsible for choosing what carriers your company is going to commit to and

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what service levels you're going to commit to.

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If you're one of those brave people that has to respond to a disgruntled customer

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on why their shipment isn't there yet.

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All of those points are things that product people call friction.

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Of things that just don't make life way more easier and peaceful.

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That's the reality of what a tool like Luma alleviates.

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It removes friction it.

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And before you know it, after using tools like this, you're going to turn around in

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a few weeks and realize the things that gave me a headache last month are no longer

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even a part of my nine to five job anymore.

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Yeah, that's amazing.

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We'll have new headaches.

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I'm sorry, that's how life is.

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I can't, you know, say you're never going to use ibuprofen again.

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All right, Joe.

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So for people who are really excited about Luma, where can they learn more?

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What's the next steps?

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Yeah.

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Well, if you're a current core API customer reach out to your CSM.

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So reach out to customer success.

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We are starting to talk to some of our current customers about this and we have

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a number of them that are super excited.

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And obviously if you're brand new to EasyPost a number of ways you can reach out to us, right?

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Yeah, we got links in the show notes.

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Come to our website.

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I mean, you'll be able to find it.

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You can email me.

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Hey, I always love to chat.

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You can talk to anybody really at EasyPost and they will get you in the right

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direction to figure out, you know, if Luma works for you, what tier might be best.

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Yeah, any of those.

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So it should be pretty easy to find.

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Awesome.

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And so thank you so much, Joe, for being here.

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It's so it's like having family here when I get to have my own EasyPost coworkers on.

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That's really extra special.

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So thank you to the audience.

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You hang in there the whole time.

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You are my favorites.

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So.

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Again, Luma, EasyPost Luma.

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It's incredible.

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I am so excited about this product launch.

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You are going to love it.

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Joe, if anyone wants to connect with you specifically, are you on LinkedIn?

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How could they connect with you?

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Yeah.

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LinkedIn.

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Absolutely.

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Great.

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And we'll throw his email in if you want to email Joe.

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He is smart when it comes to product.

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Maybe you just have a question around product marketing.

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He loves to nerd out on that stuff.

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So thanks again and we'll see you all next time.

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