Shopify will adjust its logistics business to enhance the competitiveness of platform sellers


Author:Wu Shuai
Source: ennews

Introduction:Shopify will increase investment in logistics business?


SHopifystayStatement issued on January 24th,takeTo itsLogistics businesscarry outadjustmentThis will help merchants on their e-commerce platforms better compete with large retailers, andThe company's delivery capacity will not be affected.


The company stated on Monday:We will evaluate SFNShopify Fulfillment Networkcarry outadjustmentTo help businesses compete with large retailers, such as prioritizing affordable pricesTwo day deliveryServing and serving American shoppersProvide convenientReturnservice.


It is understood that,Shopify launched SFN in 2019, which was a new logistics method at that time. SFN uses artificial intelligence driven "intelligent allocation technology" to determine the nearest logistics center and determine the inventory level of each logistics center, ensuring timely delivery by merchants and reducing transportation costs.


Cross border Shopify will adjust its logistics business to enhance the competitiveness of platform sellers


Meanwhile,Shopify stated that it has notified warehouse partners and merchants,warehouseCapacity will notBecause of this adjustmentAnd reduce,It has sufficient capacity to meet usage requirementsSFN merchants'logisticsRequirements.We estimate that the merchant'sLogistics deliveryWill not be disturbed.”ShopifySaid in the statement.


Last week, there were reports that,Shopify is terminating or reducing its contracts with warehouse partners, causing the company's stock price to drop by nearly 9%. However, after Shopify's latest statement, the company's stock price rose by 7%.


As we all know,ShopifymainbyOnline sellersprovideVarious technical tools to help sellers build and operate online websites. Income alsomainDerived fromsubscriptionincomeAnd merchant service revenue.


Therefore, there are investorsworry,SHopifyThe latest plan forMay meanThe company needs torightLogistics businessMake significant investments and invest lightlyyieldMode shift hasOwnDistribution center,And regarding thisRaise doubts.


IndustryAnalysts say:Shopify is far from establishing Amazon scalelogisticsThe business is still far away, and investors should not expect such things in the short term.


Shopify is currently ranked third among the most valuable companies in Canada, second only toRoyal Bank of CanadaandDaoming Bank(TD Bank).The company stated that it will be in its fourth quarterFinancial reportProvide information on itsLogistics businessMore details.

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