Shopify Takes a big step Towards Ecommerce Order Fulfillment with a $1 Billion Investment

Two years ago, Shopify introduced its own fulfillment service known as the Shopify Fulfilment Network (SFN). Qualifying merchants in the US were allowed early access to the service with a dedicated network of fulfillment centers that will ensure timely deliveries, and lower shipping costs, for a superb customer experience.

Using smart inventory-allocation technology, powered by machine learning, SFN predicts the closest fulfillment centers and optimal inventory quantities per location to ensure fast, low-cost delivery to your customers. Shopify Fulfillment Network takes care of everything else; distributing products, storage, order preparation, delivery, returns, inspections and tracking.

After two year of testing, Shopify is now ready to take the next big step at helping small merchants like you to focus on running your business while they handle the heavy duty stuff.

SFN is moving from test mode to a full-blown service.

The company announced a $1 billion investment plan in capital expenditures in 2023 and 2024 to build out its Fulfillment Service. Shopify Fulfillment Network could help “deliver packages in two days or less to more than 90% of the U.S. population while minimizing the inventory investment for SFN merchants.”, according to Harley Finkelstein, President of `Shopify.

How Shopify Fulfillment Network works

Shopify Fulfillment Network (SFN) as a fulfillment service stores your inventory and fulfill orders.

  1. Customer makes an order for a product you sell on your website.
  2. SFN picks and packs your products and ships them to your customer within two days.
  3. Merchant manages shipment tracking, customer data, and inventory levels in a dashboard.
  4. SFN handles returns and restocks them for your next sale.

The relative simplicity of SFN would be one of the most enticing features for many small brands. It is simple yet a powerful service that will help small businesses streamline, grow and scale their ecommerce operations across the US and beyond.

How to get started with SFN

In order to know if SFN is a good fit for your business, you have to answer 3 simple questions:

  1. Does your business sell in the US?
  2. Do you ship 3 orders per day?
  3. Do you sell regulated or perishable products?

If you answered YES to questions 1 & 2 and NO to 3, then you can apply to join the program.