Shopify is a platform that allows local merchants to sell anywhere across the globe. However, these local merchants still face issues on the logistical part and end up more time on management than actual sales. Flexport is one such app launched recently, which enables medium-sized businesses (SMBs) to quote, book, track and replenish inventory.
“We’re happy to announce the launch of the Flexport App on Shopify—a one-stop, integrated solution designed for small and medium-sized businesses (SMBs) to meet their global trade needs. The flagship app is the first milestone in Flexport’s strategic partnership with Shopify to empower SMBs with the technology and tools they need to grow their businesses globally,” Flexport stated in a blog post.
The Flexport App’s integration with Shopify and the Shopify Fulfillment Network app enables any merchant to connect their supply chain to Shop Promise, without requiring any supply chain expertise.
Aaron Brown, CEO, Shopify Logistics
About Flexport app
The app is available for free on the Shopify App Store. Promising seamless freight services, Flexport offers a platform to manage global logistics. It not only empowers buyers and sellers but also provides essential tools and data insights to logistics partners. The Flexport app ensures constant growth and innovation as merchants get to choose from the best ocean freight services.
Shopify merchants also gain knowledge of stock-keeping units (SKUs) using the Flexport app. The Shopify app also offers 24/7 support and expert guidance on customs clearance, working capital and cargo insurance.
Thanks to Flexport, merchants save a lot of time using integrated logistics solutions. It just takes a few clicks for merchants to quote and book directly in the Flexport app. One can easily track and replenish inventory, thanks to the SKU-level visibility provided by the app. It is also useful for internal communication as Flexport allows you to share real-time updates with your team within the app.
Three additional benefits of Flexport include guidance from the logistics experts, access to reporting tools and insights from sales analytics. Currently, Flexport allows the shipment of the products within the United States additional port coverage is expected to come later this year.
How Flexport works
Flexport allows merchants to choose from the right ocean freight shipping solution — Less-than-Container-Load (LCL) and Full-Container-Load (FCL) services. It also provides enhanced protection for cargo shipments. It is much easy to calculate real-time cost estimates using the app. All these features help local merchants leverage enterprise-grade reporting.
“Shopify and Flexport share a joint vision of breaking down global supply chain barriers for businesses of all sizes. The Flexport App’s integration with Shopify and the Shopify Fulfillment Network app enables any merchant to connect their supply chain to Shop Promise, without requiring any supply chain expertise,” Aaron Brown, CEO of Shopify Logistics, said as per the Flexport blog.
Dave Clark, co-CEO of Flexport, said in a Tweet: “Today is an exciting day for Flexport as we launch the Flexport App on Shopify. This is the first milestone in our strategic partnership with Shopify as we look to empower SMBs with the technology & tools they need to grow.”
Today is an exciting day for @flexport as we launch the Flexport App on @Shopify. This is the first milestone in our strategic partnership with Shopify as we look to empower SMBs with the technology & tools they need to grow. https://t.co/1Zvio61Q9Y
— Dave Clark (@davehclark) February 9, 2023
The partnership between Shopify and Flexport promises to simplify the management of the end-to-end supply chain. In 2022, Shopify strategically invested in Flexport’s Series E funding round. Both companies share a vision that merchants operate freely amid a unified supply chain network from the factory floor to the customer door.
Current clients
Flexport currently serves thousands of global merchants with technology and freight services. Some of its popular clients include Bombas, Cotopaxi and Parade.
In December, Amazon Vice President for WW Delivery Service Partner Program, Parisa Sadrzadeh, joined Flexport as Senior Vice President of SMB Products and Technology. After over 11 years of work experience at Amazon, Sadrzadeh is leading Flexport’s push to build SMB-focused logistics technology and products.
“Global logistics providers have chronically underserved small and medium-sized businesses. We are excited to deepen our partnership with Shopify to enable SMBs with the logistics infrastructure, expertise, and technology typically reserved for enterprise companies with more experience and resources,” Sadrzadeh said in a statement.
“The Flexport App on Shopify gives merchants seamless access to breakthrough logistics solutions – an important step forward in our ambitious roadmap to power the growth of SMBs worldwide,” she added.
App reviews
Currently, the recently launched app has an overall rating of 3.5 after two reviews on the Shopify App Store. While one merchant ‘Role 4 Initiative’ from the United States rated Flexport 2/5, it garnered a 5/5 rating from DCCI, a Shopify merchant based in Canada.
“Easy to use, but not very useful. Doesn’t support full containers to my location or many others that I checked. Compared to Freightos.com, loose cargo pricing was about 10% higher before even adding insurance and 3-4 weeks slower. Not really competitive yet. Hope it improves,” Role 4 Initiative said in its review.
“Slick means of getting a freight estimate and booking freight directly within an app. First of its kind,” stated DCCI. While Role 4 Initiative spent only one hour on the Flexport app, DCCI posted its review after using it for 28 days.
Shopify’s Intent
Shopify constantly tries to ease the logistics burden on online merchants. At the time of Q2 earnings in July 2022, CEO Tobias Lütke hinted at “the vertical integration of logistics”. The fulfillment initiative will help the Canada-based platform compete with e-commerce giant Amazon.
Supply Chain Drive quoted Shopify President Harley Finkelstein explaining the entire process of the company’s fulfillment network. First arrived at hubs, the product will be unpacked, scanned and inspected for a quality check using a range of software and machine learning. The quality of the product will be compared to the inventory registered in the metadata of Shopify’s back office.
Shopify will then work on the buyer’s demand and expectation of delivery to ship the product to the distribution channels operated by merchants. Only then, merchants will be able to deliver the product directly to the shopper.
“Orders with predicted delivery of 2 days or less have now increased from less than 2% prior to software updates to over 70% after the updates, and we are just getting started,” the Shopify president said.
The fulfillment network will operate on Deliverr’s software and technology developed by 6 River Systems. According to Finkelstein, Shopify’s aim is to “forward-position merchants’ inventory to support timely fulfillment with a minimal inventory commitment”.
