We know that Shopify is an e-commerce platform that allows sellers to sell their products online with the help of their own stores rather than one where they can list their products without having control over their listing and other benefits. For this, Shopify does charge their customers a flat fee and commission on the sales as well. However, it is still not a full-stop solution because of the logistics that need to be taken care of by the customer. But Shopify is doing things to solve that part and became a direct competition to Amazon.
Recently, Shopify announced a new department and its CEO. This new department inside Shopify is Shopify Logistics, and the company says they are working on something that the world has not seen yet. Aaron Brown, the CEO of Shopify Logistics, adds that they are trying to “liberate” sellers from the most significant pain point in the e-commerce industry, Logistics. This newly-formed department will have its recent acquisitions and services from its partnership with freight forwarder Flexport. Brown adds, “That liberation is what we believe will help a customer go from one sale a day to five sales a day to 100 sales a day,” suggesting that this service will be available to micro sellers and not just limited to the top sellers.
With their partnership with Flexport, Shopify says, sellers will get VIP access to container ships they couldn’t get earlier. Shopify says that the items will be shipped to their warehouses via a truck, and Deliverr will then spread the products across their network of warehouses. Note that Shopify acquired Deliverr in 2022 for $2.1 billion. It finally looks like Shopify is taking the one-stop e-commerce platform angle seriously and working to solve the logistics problem.
Brown added, “We now have one network, so every time a new merchant joins SFN or uses the Deliver app if they want, they’re going on to one common network,”. This is in direct competition with Amazon, providing everything from selling its products to shipping on its platform. This is why sellers who don’t want to tackle logistics prefer Amazon over other platforms due to its robust logistics network.