Shopify to follow Amazon’s lead with US fulfilment centres
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Shopify to follow Amazon’s lead with US fulfilment centres

Blockbuster ecommerce specialist Shopify, the company that provides the online retail platform and associated tools for a number of businesses (most notably, perhaps, millennial influencer Kylie Jenner’s cosmetics sales) is taking a leaf out of Amazon’s book. The company recently announced it would be adding to the efficiency of its platform by creating a US fulfilment centre network, giving it the kind of logistical clout to help its clients achieve a first-rate online retail service in the country.

Shopify’s share price has appreciated by an incredible 145% year to date!

Shopify June 24

Source: Yahoo Finance

The company will spend $1 billion in setting up the network, which, it’s hoping, will give merchants on its platform the ability to deliver goods with greater speed at lesser cost. This is a strategy that ecommerce titan Amazon has pioneered over the last decade, and its fruits are clear for all to see.

Craig Miller, Shopify’s chief product officer, told listeners at the company’s annual develop conference in Toronto that “a large number of orders are lost in the final stages due to complex shipping costs.” With a network of fulfilment centres around the US, that could be avoided. Miller said that the system will use machine learning to predict demand and pinpoint fulfilment centres close to the merchant in question, enabling maximum efficiency in the business’s logistics arm.

The move is part of a wider expansion by the company, which has also announced a plethora of new features including 3D modelling for products, a better user interface, the ability to edit orders, 11 new language capabilities, a multi-currency payments system, and more. The next big shake up on the company’s platform is likely to be a new point of sale system, which will be unveiled later this year.

Disclosure

Dominion holds Shopify in its Global Trends Ecommerce Fund.


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