Shopify Fulfillment Network to compete with Amazon FBA

By Chris Dawson June 24, 2019 - 10:00 am

Shopify are launching the Shopify Fulfillment Network and investing $1 billion to build out their shipping and storage capabilities. This will in some ways directly compete with Amazon FBA but will largely be used for merchants selling through their Shopify webstore whereas FBA is still largely utilised for sales on Amazon.

Qualifying merchants in the US can now apply for early access to Shopify Fulfillment Network with a dedicated network of fulfillment centers that will ensure timely deliveries, and lower shipping costs, for a superb customer experience.

Shopify is known for having simplified the online shopping experience, and they say that they are now taking this one step further — making the fulfillment systems and technology that used to be reserved for the largest companies in the world accessible and affordable to every merchant, even those just starting to take off. All of this happens without requiring you to be a technical expert, so that you can focus on building lasting relationships with your customers.

Fulfillment is indeed the hardest part of ecommerce – with Shopify and competing platforms, just about anyone can source products, upload them to the web and get them sold. Smaller merchants have the challenge of higher carrier rates then large retailers combined with earlier cut off times and usually have to restrict themselves to a single courier plus a postal service due to lack of technology and pricing. By adding in Shopify Fufillment Network, Shopify can offer what should be better rates and a superior service.

Shopify are aiming to have US wide two-day shipping coverage by the end of the year and be able to offer Shopify Fulfillment Network to 100s of 1000s of merchants.

“We plan on spending over $1 billion to build and operate the Shopify Fulfillment Network over the next few years. So this is another example of how Shopify is democratizing commerce by taking the warehouse systems, machine learning and other technologies that used to be reserved for only the largest companies in the world, and making them accessible and affordable to all merchants including those that are just starting to take off.
– Craig Miller , chief product officer, Shopify

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