Shopify to Build $1B US Fulfillment Network
This week, Canadian company Shopify announced that they would invest $1 billion to build a new fulfillment network in many ways similar to Amazon.com's Fulfillment by Amazon (FBA) service. The move will go a step further toward making Shopify a true 1-stop shop for DTC merchants who are looking to scale their businesses.
Interestingly, the company had already made it simple to use Amazon's FBA as a fulfillment solution for Shopify storefronts with a built-in integration. Other Shopify enhancements (plugins) have allowed merchants to sync their content and pricing with Amazon, eBay, and other marketplaces.
Much like Amazon's service, Shopify may pool shipments from different storefronts together to help defray shipping and packaging costs. The company will also use AI to predict demand and to move inventory closest to anticipated sales. The news is just the latest in a string of shipping-related announcements as retail titans Walmart and Amazon up the ante with new options like 1-day shipping.
Shopify's stock was up on the news and has more than doubled this year to date.