Shopify announced the largest acquisition in its history: Deliverr for $2.1B.
Deliverr is an end-to-end supply chain management solution for independent merchants. Shopify will integrate with its existing Shopify Fulfillment Network, and warehouse robotics arm into a whole new integrated Logistics division.
As a result, Shopify is already making strategic moves and bold announcements!
With Shopify Promise, they’re guaranteeing 2-day delivery for merchants that will be using their new Logistics solutions.
Is Shopify trying to become a logistics giant? Is this a direct response to Amazon’s jab, with the recent announcement of the “Buy with Prime” feature?
Who do you think is better positioned to dominate the SMB e-commerce logistics market?
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Amazon revealed yesterday a new service for merchants: “Buy with Prime”.
For the first time, merchants outside of the Amazon.com marketplace will be able to offer the same benefits to Prime customers as they get on Amazon. This includes free shipping, next-day delivery, and free returns!
To be eligible, members will need to be part of the “Fulfillment by Amazon” (FBA) program in which Amazon takes care of the warehousing, shipping, and returns.
Through this new service, Amazon clearly wants to accelerate with FBA and take on additional market share, especially with Direct to Consumer (DTC) and long-tail merchants.
That’s why many analysts see this move as a jab at Shopify’s business.
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