Shopify Beefs Up Fulfillment by Acquiring Deliverr for $2.1B
Reported as a rumor in mid-April by Bloomberg, but now confirmed, Shopify is expanding its fulfillment service by acquiring fulfillment technology provider Deliverr for $2.1 billion.
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This is the largest acquisition in Shopify’s history and will create an end-to-end logistics platform to unlock fast and easy fulfillment for millions of merchants.
Founded in 2017, Deliverr’s hassle-free logistics network now delivers more than a million orders per month for thousands of merchants across the US.
Deliverr Strengthens Shopify Fulfillment Network
- Shopify Fulfillment Network (SFN) and Deliverr are combining to remove supply chain complexity for merchants of all sizes, on and off Shopify, democratizing access to end-to-end logistics for independent brands for the first time.
- Deliverr’s technology strengthens SFN’s ability to manage merchant inventory from port to porch as it travels to the warehouse network, gets distributed across sales channels, and ultimately arrives at the consumer’s doorstep.
- SFN and Deliverr will power Shop Promise, a new service that offers consumers two-day and next-day delivery options with the merchants they love.
Fast, reliable shipping is now expected by consumers and a deciding factor when shopping online.
However, recent global shipping delays and increasingly complex supply chains have made meeting these expectations as challenging as ever—merchants aren’t able to fulfill orders as quickly as they need to stay competitive.
Shopify is doubling down on logistics to help merchants adapt and thrive in the face of these changes.
With the addition of Deliverr’s world-class software, talent, data, and scale, SFN aims to become the most robust end-to-end logistics platform that gives merchants greater control of their inventory across all sales channels.
Together, SFN and Deliverr will handle all of the complicated stuff so merchants can focus on running their business and satisfying customers.
With Deliverr and SFN, merchants, whether or not they’re using Shopify, will be able to reduce logistics costs and eliminate the hassle of managing complex supply chains. Specifically, they’ll gain access to:
- Simplified multichannel inventory management with a single place for merchants to ship their inventory for different sales channels. These include a merchant’s online store, brick-and-mortar locations, wholesale customers, marketplaces including Amazon, eBay, Etsy, and Walmart, and platforms like Google, Facebook, Instagram, and TikTok.
- Demand-driven inventory placement that predicts where customer orders are likely to come from and positions inventory near that demand, so orders can be fulfilled from the closest possible location. We’ll get all of a merchant’s inventory and orders where they need to go, and fast!
- Reliable two-day and next-day delivery from coast to coast with an expanded network of warehouse partners, carriers, and last-mile partners so that merchants always get the best service possible, no matter where they’re shipping to across the U.S.
- Flexible, independent logistics services that can be mixed and matched based on merchants’ unique needs as they scale their businesses. This includes new services for storage, freight, inventory preparation, and returns, which will be available to merchants whether or not they use SFN for fulfillment.
Consumers can expect some exciting changes, too! Soon, when shopping online for their favorite brands, consumers will see a new badge on products they browse: Shop Promise.
Merchants using SFN or Deliverr will have access to Shop Promise, a new benefit in early access that displays two-day and next-day delivery promises on merchants’ online stores and other channels.
This delivery promise extends beyond the online store across surfaces like Google, Facebook, Instagram, and the Shop app, helping merchants improve trust and increase sales with billions of potential customers by meeting them where they like to shop.
Most importantly, Shop Promise guarantees merchants what no other commerce platform can: full ownership of their brand, business intelligence, and customer data.
By combining Shopify’s strengths with Deliverr’s, SFN will offer merchants a one-stop-shop for their logistics needs, from initial receipt of inventory to smart distribution through fast delivery and easy returns.
Shopify plans to integrate Deliverr with SFN’s direct-to-consumer fulfillment operations and 6 River Systems’ leading warehouse automation technology.
The full set of turnkey solutions will connect through Deliverr’s network technology, as well as Shopify’s embedded software and robotics inside both Shopify and partner-operated warehouses.
Altogether, the company is building a fast and reliable fulfillment offering that gives independent merchants of all sizes the ability to meet customer expectations quickly and affordably.
“Our goal is to not only level the playing field for independent businesses, but tilt it in their favor—turning their size and agility into their superpower.”Tobi Lütke, founder and CEO of Shopify
“Together with Deliverr, Shopify Fulfillment Network will give millions of growing businesses access to a simple, powerful logistics platform that will allow them to make their customers happy over and over again,” added Lütke.
“Our technology and expertise in inventory management, inventory placement, and demand chain combines perfectly with Shopify’s roadmap, enabling us to now build an end-to-end logistics platform together,” said Harish Abbott, co-founder and CEO of Deliverr.
“Shopify has been building the future of merchant-first fulfillment solutions, and our team has a track record of helping businesses of all sizes streamline their operations. We’re excited to join Shopify in their mission to make commerce better for everyone while democratizing shipping and fulfillment for independent entrepreneurs,” added Abbott.
Shopify Fulfillment Network, 6 River Systems, and Deliverr will collectively form a broader logistics unit within Shopify under the group’s newly appointed CEO, Aaron Brown, who has led Shopify Fulfillment Network since 2020.
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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.