E-commerce platform Shopify buys Deliverr for $2.1 billion

Last week, e-commerce platform Shopify announced their intention to acquire Delivery man, an e-commerce fulfillment provider, for $2.1 billion. The deal is the largest acquisition in Shopify’s history, providing end-to-end logistics solutions to better serve Shopify merchants of all sizes. Deliverr was founded in 2017 and currently delivers over one million orders per month for thousands of merchants across the country.

“From port to porch, we’ll manage a merchant’s inventory and get it where it needs to go,” Shopify said in a promotional YouTube video. “And we’ll get it there quickly with a two-day shipment. Together, we are transforming the future of fulfillment for all.

“Our goal is not only to level the playing field for independent businesses, but to tip them in their favor, turning their size and agility into their superpower,” says Tobi Lütke, founder and CEO of Shopify. “With Deliverr, Shopify Fulfillment Network will give millions of growing businesses access to a simple, powerful fulfillment platform that will keep their customers happy time and time again.”

Merchant Services

In Shopify’s May 5, 2022 announcement, the e-commerce platform outlined the ways Deliverr and the Shopify Fulfillment Network (SFN) will benefit merchants.

  • Simplified multi-channel inventory management. Merchants will have one place to ship their inventory from, regardless of the sales channel the sale originates from, including online stores, brick-and-mortar stores, online marketplaces, and social media platforms (eg. example, Facebook, Instagram and TikTok).
  • Placement of stocks according to demand. SFN and Deliverr systems can predict where customer orders are likely to come from and place products near that demand, so that products can be delivered from the closest location.
  • Reliable two-day and next-day delivery. From coast to coast, companies use a network of warehouse partners, carriers and last mile partners to provide the best service to merchants across the United States.
  • Flexible and independent logistics services. Merchants can choose the services they need, including warehousing, freight, stock preparation, and returns management.

“Our technology and expertise in inventory management, inventory placement, and demand chain combine perfectly with Shopify’s roadmap, now allowing us to build an end-to-end logistics platform together,” says Harish Abbott, co-founder and CEO of Deliverr. “Shopify is building the future of merchant-focused fulfillment solutions, and our team has a reputation for helping businesses of all sizes streamline their operations. We’re excited to join Shopify in their mission to improve commerce. for everyone while democratizing shipping and fulfillment for independent contractors.

Shop Promise

Shopify also unveiled its new Shop Promise, a new program that Shopify is testing in conjunction with its acquisition of Deliverr. This benefit allows Shopify merchants using the new logistics services to display an exclusive Shop Promise badge indicating fast, reliable shipping and easy returns and exchanges. Shop Promise’s goal is to help merchants build trust and increase sales with potential customers.

“Shop Promise guarantees merchants what no other commerce platform can: full ownership of their brand, business intelligence and customer data,” shopify said.

In Shop Promise’s explanation, the e-commerce platform said that using Shop Promise will not cost merchants or their customers anything. Merchants can apply to join the Shop Promise program online at Shopify.com.

The turnkey e-commerce platform solution

Shopify will combine its strengths with Deliverr and warehouse automation technology from 6 River Systems to provide end-to-end logistics solutions to merchants, regardless of size or stage of business.

“Our complete set of turnkey solutions will connect through Deliverr’s network technology, as well as Shopify’s integrated software and robotics inside Shopify and partner-operated warehouses. Together, we’re building a fast and reliable execution offering that gives independent traders everything measures the ability to meet customer expectations quickly and affordably,” Shopify said.

Insider grip

Since the start of the pandemic more than two years ago, supply chain disruptions and component and labor shortages have impacted traders, logistics companies and customers. This acquisition by the e-commerce platform may not solve all problems, but it is a step in the right direction for Shopify merchants who have little or no control over deliveries. By offering merchants affordable solutions starting at $29 per month, Shopify is making their subscription services even stickier and more appealing to merchants who want to focus on what they do well, leaving the rest to the experts.