Have Shopify And Flexport Tied The Knot? How Shopify Sent Its Fulfillment Operations Packing
On May 4th, Shopify made headlines with its announcement to sell its logistics business to Flexport. This deal involves Shopify receiving 13% equity in Flexport, bringing its ownership to the high teens.
Flexport, led by Dave Clark, a former logistics leader and head of worldwide operations at Amazon, has a strong background in building logistics and final-mile businesses during his 20-year tenure at Amazon.
It's worth noting that Shopify had previously acquired Deliverr for $2.1 billion, showcasing its commitment to bolstering its logistics capabilities. Flexport, on the other hand, has raised $2.3 billion to date, with a primary focus on ocean, air, truck, and rail freight forwarding and brokerage services.
Additionally, the integration of 6 River Systems, which specializes in warehouse automation and robotic solutions, adds further depth to the partnership.
In today's episode, I am joined by James Kelly, a former Amazon insider and current Amazon and DTC seller, as well as the CEO of Woolly.Clothing and other ventures.
We dive into this intriguing partnership and explore how Shopify's recent divestment of its logistics business to Flexport has implications for both companies and the broader e-commerce landscape.
Tune in!
Key Takeaways
- Shopify and Flexport integration (04:01)
- Is Flexport now a viable competitor to Amazon FBA? (06:56)
- Buy with Prime on social platforms (13:53)
- Why Shopify doesn't have logistics DNA (17:24)
- Customer behaviors and traffic (23:15)
- Will Shopify and Flexport eventually become one company? (31:04)
- How the Shopify-Flexport deal impact sellers (36:15)
Additional Resources:
- Check out James Kelly's brand here: woolly.clothing
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- Grab the FREE Amazon Seller Central Checklist
- Get the book “The Amazon Jungle” book by Jason Boyce
- Learn more about Avenue 7 Media
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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).
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