Shopify Outsources Logistics to Flexport

Introduction

In a significant move, Shopify has sold its Logistics unit to Flexport, a renowned international supply chain technology company. This sale comes on the heels of Shopify’s previous strategies to build its own logistics and delivery operations. Notably, Shopify made a bold investment of $ 2.1 billion in the acquisition of Deliver, a last-mile delivery company, as part of this endeavor.

The partnership between Shopify and Flexport will enable Shopify merchants to access Flexport’s freight services, enhancing their shipping capabilities. Flexport’s CEO, Dave Clark, expressed confidence that this collaboration will not only scale the shipping services offered by both companies but also better cater to merchants regardless of whether they utilize platforms like Amazon, Walmart, or Shopify itself.

Under this new arrangement, Shopify will retain its Shop Fulfillment Network app. Furthermore, it will serve as Flexport's official logistics provider and the preferred partner for the Shop Promise badge, creating a streamlined logistical offering for its users.

Keywords

Shopify
Flexport
Logistics
Supply Chain
Delivery Operations
Last Mile Delivery
Partnership
Freight Services
Shop Fulfillment Network
Shop Promise Badge

FAQ

Q1: Why did Shopify sell its logistics unit?
A1: Shopify sold its logistics unit to streamline operations and partner with Flexport to enhance shipping capabilities for merchants.

Q2: How much did Shopify invest in Deliver?
A2: Shopify invested $ 2.1 billion in acquiring Deliver, a last-mile delivery company.

Q3: What are the benefits of the partnership between Shopify and Flexport?
A3: The partnership allows Shopify merchants to access Flexport's freight services, improving shipping capabilities and offering better service regardless of the platform used.

Q4: Will Shopify continue to have its own logistics services?
A4: Yes, Shopify will retain its Shop Fulfillment Network app and act as Flexport's official logistics provider.

Q5: What is the Shop Promise badge?
A5: The Shop Promise badge is a designation that signifies reliable delivery and service, and Shopify will now serve as Flexport's preferred partner for this badge.