Shopify just introduced Shopify Fulfillment Network, a new service to help merchants get their goods to customers easily and quickly. They are able to do so by setting up a network of fulfillment centers across the U.S. and Canada that are powered by AI, resulting in quick deliveries and lower shipping costs.
Shopify has invested $1 billion to expand its delivery network. In comparison, Amazon recently invested over $800 million in the second quarter of 2019 alone to bring 1-day shipping to Prime members. Not willing to sit on their heels while Amazon continues to win the shipping war, Walmart and Target expanded their delivery operations as well, offering their customers 1-day shipping options.
$1 billion may seem like a drop in the bucket compared to Amazon, but Shopify is growing rapidly. Their new network will help merchants lower their fulfillment costs as well as present an alternative to Amazon's anti-competitive pricing, giving small businesses a chance to compete with big retailers. Merchants are also growing tired of retail giants, particularly Amazon, who increasingly look to private label products and knock merchants out of the competitive market.
Shopify currently has over 800,000 businesses selling on its platform and as reported by CNBC, analysts believe they can really compete
A real contender?
Do you think Shopify can give Amazon a run for its money? Will merchants look to Shopify as a better alternative and opt out of the Amazon ecosystem? Will consumers embrace Shopify like they did Amazon? Share your thoughts with us! Email us: firstname.lastname@example.org or give us a call: (303) 536-5505.