Shopify Logistics: From the $2.1 Billion Deliverr Acquisition to the Strategic Flexport Partnership
Logistics that moves at the speed of your commerce is essential in the modern market. Delivery speed is a big differentiator for an online store, as expensive shipping fees or packages that take long to arrive could turn away many shoppers who are used to the fast shipping standards that Amazon has set. On May 5, Shopify announced its $2.1 billion acquisition of Deliverr, a San Francisco-based fulfillment technology startup. This move is the largest acquisition in Shopify’s history, and could allow the company to take its logistics and fulfillment capabilities to a whole new level.
The Port to Porch Experience
While at Shopify, the latest acquisitions, Deliverr and 6RS, came together to create a port to porch experience for merchants and warehouse operators. The partnership’s goal is to simplify and democratize the supply chain and fulfillment processes for merchants of all sizes, whether they’re on Shopify or not. This work is an encapsulation of a year's worth of sprints, late nights and endless collaboration with stakeholders to ensure that launching an ecommerce business with your own brand and identity has never been easier.
Fulfillment Solutions and Technology
Deliverr is a privately-held company that offers fulfillment solutions for ecommerce businesses. Founded in 2017, Deliverr has a proven track record as a fulfillment and logistics service provider and fulfills over a million monthly orders. Deliverr managed to power through logistics disruptions with its combination of advanced technology and an “asset-light” business model. They don’t own warehouses and don’t employ warehouse staff; instead, they contract warehouses and use the manpower and equipment of these warehouses.
To optimize efficiency, Deliverr uses a predictive analysis technology that spots product demand trends and customer preferences based on demographics and geography. Their software takes note of what sells well in a particular area and they make sure to stock more of those items on the warehouse shelves. This allows them to continue giving ecommerce merchants affordable, next-day delivery promises despite supply chain issues.
Logistics Network Capabilities
| Feature | Details |
|---|---|
| Warehouse Locations | Over 80 locations in the US, including Texas, Ohio, Missouri, California, and New Jersey |
| International Reach | Supports shipping to over 220 countries, including Canada and Mexico |
| Infrastructure | Two cross-docks, five sorting centers, and twelve carriers |
| Marketplace Integrations | Etsy, WooCommerce, Facebook Shops, Walmart, Google Shopping, eBay, Wish, Amazon, BigCommerce |
Visual Identity and Branding System
With the inception of this new organization, we first needed a logo and visual design system that represented the convergence of three different companies, but still felt like Shopify. I explored iterations for a logo system approach that represented Freight, Fulfillment and Technology services. I was inspired by the cube shape of our box mark and created versions of it that felt like complex systems working together to form a whole. Ultimately, it was decided to stick with one primary logo instead of a tiered approach.
The box mark felt the most appropriate because, like the Shopify bag, it's a simple way to represent the complexities of logistics. Our proprietary font, Shopify Sans, was used as the primary typeface. Next, I built out the brand system to see how it could grow through mockups, graphic treatments, iconography and merch. I created two different color palettes that each represent the merchant and the operator. When they come together, they form Shopify Logistics. Our primary Lime and Lapis are nods to the workers' vests, pick bins, and storage shelves.
Expansion through AnyLogi and Strategic Partnerships
Shopify merchants can also tap on AnyLogi for product management, payment confirmations, warehousing, storage, shipping and delivery management. Through the AnyLogi app on Shopify, merchants can easily manage products and send them to an AnyLogi-partnered warehouse. This platform allows users to centrally manage the logistics for multiple Shopify stores, greatly reducing the man-hours required for logistics management.
The Strategic Transition to Flexport
At the beginning of May 2023, Shopify sold the Logistics division to Flexport, concluding the work being done for the organization inside the Shopify ecosystem. Flexport, the leading tech-driven logistics platform, announced the acquisition of the assets of Shopify Logistics including Deliverr. Through the integration of Shopify Logistics, Flexport will strengthen its advanced AI-driven optimisation to streamline the full global supply chain, reducing costs and improving reliability for customers.
Flexport will also become the official Shopify Logistics partner and provider of Shop Promise for millions of Shopify merchants. Shop Promise enables transparent shipping timelines, including two-day and next-day delivery options to customers of Shopify merchants. This announcement will enable Flexport and Shopify to carry the merchant-centred logistics vision forward, and give more businesses access to a fast, flexible and affordable logistics network that seamlessly integrates with the Shopify tools they know and love.
