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Why Shopify has bought Deliverr for 2,000 million euros

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2,100 million dollars (2,000 million euros) has been the figure for which Shopify has bought Deliverr, the last mile company. This has been the largest acquisition in the history of Shopify, a bet with which it plans to create a logistics platform that millions of its sellers can manage their shipments.

Shopify buys Deliverr to power its fulfillment service

“Our goal is not just to level the game changer for independent businesses, but to tilt it in their favor, making their agility and size their superpower,” said Tobi Lütke, founder and CEO of Shopify in his statement. «With Deliverr, Shopify’s fulfillment service will give millions of growing businesses access to a simple and powerful logistics platformthat allows them to make their customers happy again and again.”

This means that Deliverr will merge with the fulfillment service “Shopify fulfillment Network” (SFN), that sellers can use to store their inventory and ship their orders. With Deliverr, inventory management capabilities will be strengthened, as well as Shop Promise will be boosteda new service that will provide customers deliveries in two days and the next day, as well as more options to store, transport and prepare inventory as well as to manage returns.

The American company Deliverr was created in 2017, and its intelligent system is able to predict the places where consumers might be interested in purchasing products, to later use the information to previously “position” the items in their warehouses according to demand, determining the best delivery method for shipment to the end customer.

Before your purchase by Shopify, Deliverr had raised around 490 million dollars (more than 460 million euros) in capital, and its latest Series F round raked in $240 million (€227 million), giving it a valuation of €2 billion. Shopify will pay around 80% in cash and 20% in Class A shares.

“Our technology and experience in inventory, location, and demand chain management mesh perfectly with the Shopify roadmap, allowing us to build a comprehensive logistics platform together,” said Harish Abbott, co-founder and CEO of Deliverr.

One more step against Amazon

Ultra-fast shipping and order management are increasingly needed by merchants as more companies like Amazon offer them, especially in the scenario left by the pandemic, which still affects almost all aspects of the supply chain and as more retailers migrate to the online channel.

Vendors see automation as a means to successfully digitize their businessin fact a PwC survey in 2021 found that a 41% of consumers are willing to pay more for shipping if it includes same-day delivery, and only 20% of them were willing to forgive retailers for delivery disruptions due to supply chain issues, highlighting the pressure for fast and efficient delivery.

By buying from Deliverr, Shopify makes sure to go one step further in the face of stiff competition from Amazonwho announced a few days ago that its Buy with Prime service would be available so that some merchants can offer Amazon’s fulfillment service on their own websites.

Now Shopify has focused on strengthening its last-mile strategy and complement the tools for their sellers, since the last mile is a factor that can be decisive for a consumer to decide to buy on Amazon or through Shopify.

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