Flexport, a global logistics platform, has announced its acquisition of the assets of Shopify Logistics, including Deliverr. This move aims to enhance Flexport’s capabilities in technology-driven solutions throughout the entire product life cycle, spanning manufacturing, transportation, ports, fulfilment, and customer delivery.
The acquisition aims to level the playing field for small businesses. In the United States, where the e-commerce market is projected to surpass $8 trillion by 2026, a significant portion of small businesses, around 1 in 4, do not have an online store. This represents a substantial number of companies that have yet to tap into the potential of e-commerce. Flexport intends to focus on this target market, and carry these businesses into the e-commerce ecosystem and provide them with comprehensive supply chain support.
Fast and cost-effective fulfilment operations have a significant impact on the success of small businesses. Research shows that 48% of online shoppers abandon their carts due to additional fees, such as shipping costs, and 22% cite slow delivery as a reason. Flexport aims to address these pain points by bringing its ocean, air, trucking, and middle-mile services to clients. Thus acquisition of Shopify Logistics aims to further bolster their capabilities in e-commerce fulfilment and last-mile delivery.
As part of this acquisition, Flexport becomes the primary provider of Shop Promise for Shopify merchants. This collaboration enables Shopify clients to access Flexport’s shipping timelines, including two-day and next-day delivery options. These services will be integrated into the Shopify Fulfilment Network app, which aims to offer merchants a seamless logistics experience within the Shopify platform.
Harish Abbott, Co-Founder and CEO of Deliverr,is joining Flexport and reporting directly to the leadership team. This transition aims to ensure a smooth integration and enable customers to access Deliverr’s capabilities as quickly as possible.