Why Shopify Acquired Deliverr for a Heavy Amount of $2.1B?

Shopify has acquired a last-mile technology company Deliverr. Shopify acquired California, San Francisco-based e-commerce fulfillment startup, for $2.1 billion in cash and stock.

It is the biggest acquisition in the history of Shopify. Before starting, It is essential to know about Deliverr.

What is Deliverr? 

A Deliverr offers management software to manage and control deliveries via an asset-light warehouse network. Deliverr allows merchants to fulfill their marketplace and shopping cart orders. satisfy their buyers with fast, reliable, predictable, and affordable order fulfillment.

Shopify’s CEO Tobi Lautke states that it will help Shopify to make an end-to-end logistics medium for many merchants. 

Fulfilling Shopify’s vision

 Deliverr technology and specialization in inventory management, order fulfillment, and demand chain connect perfectly with Shopify’s roadmap, helping Shopify to make an excellent logistics platform.” 

The Shopify and Deliverr services together will benefit eCommerce businesses through:

  • Organize multichannel stock management that makes a single resource among eCommerce, brick-and-mortar, wholesale, marketplaces, and media including Facebook, Google, Instagram, and TikTok.
  • Flexibility in organizing logistics: Vendors can add services for storage, freight, stock, and returns according to their business needs to grow in the business. 
  • Predictive stock arrangement: It predicts the source of customer orders and places stocks around the demand.
  • Next-day and two-day delivery: It aims for next-day delivery across the U.S. through an extended network of storehouses, transports, and last-mile partners.
  • A tool named Shop promise shows next-day and two-day delivery on vendors’ channels, enabling them to develop shipping assurances across platforms like Facebook Instagram, and Google while maintaining their branding, product, business, and customer data.

Pandemic has impacted the supply chain, as more retailers switched online to run their businesses after Covid. Digital shops require fast delivery to fulfill their customer’s demands, and the requirement for fast shipping is increasing day by day. Sellers need automation as a solution to meet the gaps in fast shipping. Deliverr offers supply chain management services to assure fast delivery.

A 2021 poll shows that 41% of buyers are willing to pay a premium for same-day delivery. On the flip side, only 20% of customers were generous to forgive retailers for delivery disturbances due to supply chain problems in 2021, emphasizing the pressure on merchants to deliver.

Statics indicates that the supply chain management could boost worth $30.91 billion by 2026, up from $19.58 billion in 2022. Venture firms invested more than $11 billion in the sector last year, according to Crunchbase data

Data indicates that the supply chain management system could boost worth $30.91 billion by 2026, Some firms last year invested more than $ 11 billion in this sector. Source.

Vendors were able to fulfill the demands of delivery, but the problem increased when the vendors switched to digital after the pandemic hit up and demands for fast delivery increased. There is an aggressive competition taking place between Amazon and Shopify, 

Shopify definitely wants to take a larger portion of the online retail market, especially with Amazon recently intruding on its territory through Buy With Prime, according to Gartner analyst Matt Moorut, who spoke with TechCrunch via email.

Also Read: SEO Tips To Increase The Visibility of Your Shopify Website

The Deliverr Shopify tie-up promises to add value to retailers that are already using Shopify to power their stores. If Shopify combine Deliverr’s offering into their existing platform, 

it swears to give the benefits of more security to online merchants that they’ll be able to continue selling, whatever further troubles lie ahead.

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