Shopify vs Amazon: Which Ecommerce Platform Suits Your Business Best?
In this article
13 minutes
- Understanding Amazon FBA Prep Service Requirements
- What Are FBA Prep Services?
- The Benefits of Using FBA Prep Services
- Common Services Offered by FBA Prep Companies
- How to Choose the Right FBA Prep Service
- Understanding Amazon FBA Prep Services Pricing
- Top Amazon FBA Prep Centers for Ecommerce Fulfillment
- Amazon FBA Fulfillment Costs and Strategies
- Setting Up Your FBA Prep Service Relationship
- Potential Challenges and Solutions
- Conclusion
- Frequently Asked Questions
Deciding between Shopify vs Amazon for your ecommerce business? Shopify lets you create a custom online store, while Amazon provides instant access to millions of customers. This article will compare their differences, costs, and benefits of each to help you choose the right platform in the Shopify vs Amazon debate.
Key Takeaways
- Shopify offers greater customization and branding options, allowing you to create a unique online store, while Amazon is a marketplace with a uniform design that limits individual branding.
- Setting up a store on Shopify involves a guided process, making it beginner-friendly, whereas Amazon allows quicker product listing but requires strict adherence to selling standards.
- Shopify has a more flexible pricing model without transaction fees on its payment system, while Amazon imposes referral fees that can eat into Seller profits; understanding these costs is key to choosing the right platform.
Key Differences Between Shopify and Amazon
When it comes to selling products online, both Amazon and Shopify are giants in their own right, but they serve different purposes. Shopify is an ecommerce platform that allows you to sell online and create your own online stores, providing a blank canvas for your brand. In contrast, Amazon is a vast online marketplace where multiple Sellers list their products, akin to owning a stand at a busy market. In the debate of Shopify vs Amazon, each platform has its unique strengths.
Listing products on Amazon can be a bit more cumbersome as it requires Sellers to provide documentation for account approval, which can delay the setup process. On the other hand, Shopify offers more freedom in entering product information, making it easier to get your shop up and running quickly.
Customization is another area where Shopify shines. Amazon’s layout significantly influences a merchant’s store page design, limiting how much you can personalize your shop. Shopify, however, allows for extensive branding and customization options, letting you create a cohesive brand experience that stands out. Whether you’re a small business or a larger enterprise, Shopify provides the tools to build a unique online presence.
New Amazon merchants often face challenges such as strict requirements for product descriptions and listings, which can be daunting. In contrast, Shopify offers a more flexible and supportive environment, making it a preferred choice for many online Sellers.
Ease of Setting Up Your Online Store
Setting up an online store should be as straightforward as possible, and both Shopify and Amazon offer different experiences in this regard. Shopify’s setup process includes a comprehensive 8-step guide, ensuring users receive support while customizing their online store. This guide, combined with Shopify’s user-friendly tools like the AI assistant for writing product descriptions and the drag-and-drop website builder, makes it an excellent choice for individuals without technical skills.
Amazon allows users to start listing products almost immediately after creating an account, streamlining the process significantly compared to Shopify. This immediate access to a huge customer base can be a major advantage for Sellers looking to start selling online quickly. However, selling on Amazon resembles operating a booth in a crowded market, whereas Shopify allows you to create your own branded online storefront.
Shopify’s pricing structure allows selling an unlimited number of products without incurring additional listing fees, making it a cost-effective option for growing businesses. Whether you want to build your own online store with customizable templates or leverage Amazon’s vast marketplace, understanding these differences can help you choose the best platform for your business.
Branding and Customization Options
Branding is crucial for any business, and this is where Shopify truly excels. Shopify offers extensive brand customization, allowing you to create a unique and cohesive brand experience. From customizable themes to HTML/CSS modifications, Shopify provides the tools to personalize every aspect of your online store. This means you can build your very own brand and customer experience that stands out in the crowded ecommerce space.
In contrast, Amazon’s marketplace design emphasizes uniformity, limiting individual Seller branding opportunities. While this can ensure a consistent shopping experience for customers, it restricts Sellers from fully expressing their brand identity. Selling on Shopify allows for complete ownership of your own store, providing more control over branding and pricing.
With Shopify, Sellers can build direct relationships with customers, gaining valuable information like names and emails that can be used for personalized marketing efforts. For businesses aiming to establish a strong brand presence, Shopify’s customizable templates and extensive branding tools are a major benefit. This flexibility allows you to tailor the customer experience to align with your brand values and goals.
Marketing Tools and Capabilities
Effective marketing is the key to driving traffic and sales, and Shopify and Amazon offer different ecommerce tools to help Sellers reach prospective customers. Shopify users can utilize a variety of marketing and SEO tools to enhance the visibility of their own website. From targeted advertising campaigns on platforms like Meta and Google to email marketing and marketing automation tools, Shopify provides a comprehensive suite of tools to help you grow your business online.
Shopify’s SEO tools guide users on improving their search engine rankings, aiding in better visibility for their online stores. Additionally, Shopify allows users to run targeted advertising campaigns across various platforms, only charging when conversions occur. This means you can reach your prospective customers more effectively and maximize your marketing budget.
Amazon Sellers must optimize for the Amazon search engine specifically, which requires a different approach to SEO. While Amazon provides immediate access to a wide range of customers, it also means Sellers need to invest in promotions to ensure visibility.
Shopify, on the other hand, requires more active marketing efforts since it does not benefit from the same built-in traffic that Amazon has. This means businesses on Shopify need to be more proactive in their marketing strategies to drive traffic and sales.
Pricing and Fees Comparison
Understanding the pricing and fees associated with each platform is essential for making an informed decision. Different types of fees to consider when comparing Amazon and Shopify include subscription fees, transaction fees, referral fees, and fulfillment fees.
Let’s break down these fees to see how each platform stacks up.
Subscription Fees
Shopify offers four main plans: Basic Shopify at $29 per month, Shopify at $79 per month, Advanced Shopify at $299 per month, and an enterprise plan for more complex businesses called Shopify Plus, starting at $2,300 per month for 36 months. These plans cater to businesses of varying sizes, providing flexibility and scalability as your business grows. The Basic Shopify plan is perfect for new and small businesses, while the Advanced Shopify plan offers more advanced features for larger enterprises.
Amazon, on the other hand, offers a simpler pricing structure with two plans. The Individual plan is suitable for casual Sellers who don’t need advanced features, ($0.99 per item sold, separate from other fees), while the Professional plan is recommended for business owners or professional retailers ($39.99 per month). This straightforward approach can be easier for Sellers to navigate but may not provide the same level of flexibility as Shopify’s tiered pricing plans.
Transaction and Referral Fees
One of Shopify’s significant advantages is that it does not impose transaction fees when users utilize Shopify Payments; you only pay the credit card rate, which covers the cost of processing the payment. This means Sellers can keep nearly all their profits without worrying about additional costs per transaction.
Amazon’s referral fees vary by product category and can range from 6% to as high as 45% depending on the item sold, but the most common by far is 15%. Shopify does not impose referral fees, which can lead to higher profits for sellers.
Additionally, Amazon charges a per-item fee for Sellers on the Individual plan, while Shopify allows unlimited products without additional listing fees. This can lead to substantial savings for Sellers using Shopify, making it a more cost-effective option in the long run.
Fulfillment Fees
Using Amazon FBA incurs various fulfillment fees based on the size and weight of the products, which can significantly impact overall expenses. These fees include storage and handling fees, which can add up quickly, especially for larger or heavier items.
Shopify, on the other hand, allows Sellers to manage shipping with customizable rates, weights, rules, and options to connect with third-party fulfillment services. This flexibility can help Sellers optimize their shipping process and reduce costs.
Shipping and Fulfillment Options
Shipping and fulfillment are central to any ecommerce business. Amazon FBA offers Sellers the advantage of leveraging Amazon’s extensive logistics network for handling inventory and shipping. This means businesses can benefit from Amazon’s fast and reliable shipping options, enhancing the customer experience.
Shopify provides users the flexibility to integrate with various order management systems and third-party logistics (3PL) providers for efficient fulfillment operations. Sellers on Shopify can set up shipping rates based on weight, destination, and specific conditions to customize their shipping process.
Additionally, integrating Shopify with Amazon Multi-Channel Fulfillment (MCF) can enhance the speed of order fulfillment, allowing customers to receive their orders more quickly. Shopify Buy with Prime is also an MCF solution, but adds a special buy button to Shopify checkout pages to allow customers to choose FBA fulfillment rather than Sellers deciding for them. These integrations can reduce manual labor by outsourcing the processing of customer orders and while optimizing logistics.
Payment Options
Payment options are a fundamental part of the ecommerce experience. Shopify Payments allows users to accept payments directly through their store without additional fees for credit card processing. This integrated payment gateway simplifies the checkout process and can improve conversion rates. Moreover, Shopify users can also integrate third-party payment processors, offering more flexibility in payment acceptance, and the Shop Pay app enables a quick 1-click checkout experience for shoppers.
Amazon supports various payment methods, including gift cards, bank account transfers, and mobile payments. The primary payment gateway for Amazon is Amazon Pay, which provides a seamless and secure payment experience for customers.
While both platforms offer robust payment options, Shopify’s flexibility and lack of additional fees make it a more attractive choice for many Sellers.
SEO and Organic Sales
SEO is crucial for enhancing online visibility and reaching potential customers in ecommerce. Optimizing product pages effectively can significantly improve a Shopify store’s visibility in search results, attracting more customers. Content marketing through blogging can further increase organic traffic, helping to establish authority and relevance in your category.
Sales on Amazon often require continuous promotion, as organic visibility is not guaranteed. This means Sellers need to invest in Amazon SEO and other promotional strategies to maintain a competitive edge.
While Shopify requires more active marketing efforts, the potential for building long-term organic sales through effective SEO and content marketing can be highly rewarding.
Integrating Amazon with Shopify
Integrating Amazon with Shopify can expand your reach and enhance your sales opportunities. This integration allows you to synchronize inventory and product information between Shopify and Amazon, streamlining the management of your online store. The process can involve using a built-in Amazon app, third-party applications, or custom APIs depending on your business needs.
Once integrated, users can create Amazon offers and listings directly from their Shopify store. Onboarding for integration can vary in time, with simpler setups taking as little as 15-30 minutes. This synergy between the two platforms can significantly enhance your ecommerce results, offering the best of both worlds.
Pros and Cons of Selling on Both Platforms
Selling on both Shopify and Amazon can allow businesses to maximize their reach and conversions. Amazon provides immediate access to a wide range of customers, which is crucial for driving sales. However, competition on Amazon is intense, requiring Sellers to invest in promotions to ensure visibility to sell products.
With over 1.75 million merchants using Shopify, businesses can avoid referral fees by using this platform, offering better marketing flexibility and control. Amazon’s strict policies can lead to account bans if compliance is not maintained, adding an element of risk for Sellers. ReSellers doing wholesale or retail arbitrage may find Amazon more suitable due to its vast marketplace.
A successful online business ecommerce platform presence should ideally include both an official website and a presence on platforms like Amazon for maximum impact. Balancing the strengths of both platforms can help businesses achieve their sales and branding goals more effectively by creating their own ecommerce website.
Beyond the Basics
Beyond the basics, both Shopify and Amazon offer unique features that can enhance your ecommerce experience. Shopify Capital provides merchant cash advances and loans to eligible store owners, a financial service many people don’t associate with the platform.
Amazon’s A9 Algorithm, which differs significantly from Google’s algorithm, plays a crucial role in how products are ranked on the site. Understanding these unique features can help you leverage each platform’s full potential.
Summary
Both Shopify and Amazon offer powerful tools for selling products online, but they cater to different needs and business models. Shopify provides extensive branding and customization options, making it ideal for businesses looking to build a unique online presence. Its flexible pricing plans and lack of transaction fees further enhance its appeal. Amazon, with its vast marketplace and immediate access to millions of customers, is perfect for Sellers looking to reach a large audience quickly.
Ultimately, the choice between Shopify and Amazon depends on your business goals and needs. For many Sellers, using both platforms can be the best strategy, combining the strengths of each to maximize reach and sales. By understanding the key differences and benefits of each platform, you can make an informed decision that sets your business up for success.
Frequently Asked Questions
Can I use both Shopify and Amazon to sell my products?
Absolutely, you can use both Shopify and Amazon to sell your products! By integrating them, you can sync your inventory and easily manage listings, giving your business the best of both worlds.
What are the main differences between Shopify and Amazon?
The main difference is that Shopify lets you build a customized online store where you control branding and customer relationships, while Amazon is a vast marketplace where many Sellers can reach a large audience, but have very little control. So, choose Shopify for brand control or Amazon for quick access to customers.
How do the fees compare between Shopify and Amazon?
Shopify generally offers more predictable and lower fees, especially if you use Shopify Payments and avoid additional transaction fees. In contrast, Amazon has varying referral fees by product category and additional fulfillment costs with FBA.
Which platform is easier to set up for a new business?
Shopify is generally easier to set up for a new business because it offers a comprehensive setup guide and user-friendly tools, perfect for those without technical skills. However, Amazon allows for immediate product listing, giving Sellers a quick start if speed is a priority.
What are the advantages of integrating Shopify with Amazon?
Integrating Shopify with Amazon expands your reach and boosts sales by synchronizing inventory and product information. This means you can easily manage your listings and improve your visibility across both platforms.

Up to 64% Lower Returns Processing Cost

Shopify Estimated Delivery Date: A Complete Guide for Ecommerce Stores
In this article
6 minutes
- Give Your Website Customers an Amazon-Like Delivery Experience
- What Is an Estimated Delivery Date?
- Why Are Estimated Delivery Dates Important for Ecommerce?
- Benefits of Adding Estimated Delivery Dates to Shopify Stores
- How to Add Estimated Delivery Dates on Shopify Using Code
- Pro Tips for Accurate Estimated Delivery Dates
- Final Thoughts
- Frequently Asked Questions
Give Your Website Customers an Amazon-Like Delivery Experience

Today, online shoppers expect transparency at every stage of their shopping experience—including shipping. One crucial factor that influences purchasing decisions is the estimated delivery date (EDD). If customers know exactly when their order will arrive, they are more likely to complete the purchase and trust your brand for future transactions.
If you’re running a Shopify store, displaying estimated delivery dates on product pages is a simple but effective way to enhance customer satisfaction and reduce support inquiries. In this guide, we’ll dive into:
- What an estimated delivery date is
- Why displaying EDDs matters in ecommerce
- The benefits of adding estimated delivery dates to Shopify stores
- Tips for accurately calculating delivery estimates
- A step-by-step guide to adding estimated delivery dates on Shopify using code
Let’s get started!
What Is an Estimated Delivery Date?
An estimated delivery date (EDD) is the projected timeframe in which a customer can expect to receive their order after placing it. Unlike general shipping estimates (e.g., “ships in 3-5 business days”), an EDD provides a specific arrival window, such as “Arrives between March 15-18”, or it can be a specific date based on the carrier’s stated transit time from origin to destination address, such as “FREE delivery Tomorrow, March 13”.
EDD calculations take several factors into account, including:
- Processing time: The time required to prepare and package the order
- Shipping method: The carrier and shipping speed chosen by the customer or offered by the Seller
- Destination: The buyer’s location in relation to your fulfillment center
- Holidays & weekends: Non-working or non-shipping days that could delay shipping and delivery
By displaying accurate EDDs, Shopify store owners set clear expectations and build trust with customers.
Why Are Estimated Delivery Dates Important for Ecommerce?
Shoppers today value convenience, speed, and transparency. If an ecommerce store does not provide an estimated delivery date, customers might abandon their carts or seek alternatives from competitors like Amazon, where shipping timelines are clear.
Here’s why showing EDDs on Shopify product pages is critical:
✅ Reduces Cart Abandonment
Uncertainty about when an order will arrive is a major reason customers hesitate at checkout. By offering clear delivery estimates upfront, you eliminate doubts and increase conversions.
✅ Improves Customer Experience & Trust
A store that provides reliable delivery estimates appears more professional and organized. Customers appreciate clear expectations and are more likely to return for future purchases.
✅ Decreases Customer Support Inquiries
One of the most common customer service questions is “When will my order arrive?” By proactively displaying estimated delivery dates, you reduce the need for these inquiries, saving time and resources.
✅ Boosts Sales & Competitive Advantage
If a customer is deciding between your store and another with vague shipping timelines, a visible EDD can be the deciding factor in your favor. Shoppers love predictability, and showing estimated delivery dates can give you a competitive edge.
Benefits of Adding Estimated Delivery Dates to Shopify Stores
Displaying an EDD builds confidence and nudges hesitant buyers toward completing their purchase.
Happy customers are more likely to leave positive reviews and recommend your store when they receive their orders on time.
Urgency-driven shoppers (e.g., those buying gifts) need clear shipping information to finalize their purchase.
EDD visibility can be leveraged in promotions, such as “Order within the next 2 hours to get delivery by Friday!”
Now that we understand the importance of estimated delivery dates, let’s explore how to add them to your Shopify store using code.
How to Add Estimated Delivery Dates on Shopify Using Code
While Shopify does not have a built-in estimated delivery date feature, you can manually add it to your product pages using Liquid code. Below are the step-by-step instructions to implement this feature without relying on third-party apps.
Step 1: Identify Your Shipping Timeframes
Before adding EDDs to your store, define your shipping and processing times. Consider:
- Order processing time (e.g., 1-2 business days)
- Shipping carrier timelines (e.g., 3-5 business days for standard shipping)
- Different EDDs for various locations (if applicable)
Step 2: Open Shopify’s Theme Code Editor
- In your Shopify Admin, go to Online Store → Themes.
- Click on Actions (3 dots) → Edit Code.
Step 3: Add Custom Code to the Product Page
Locate the `product.liquid` file (or `product-template.liquid` in Shopify 2.0 themes) and insert the following code snippet where you want the estimated delivery date to appear:
{% assign processing_time = 2 %} <!-- Adjust processing time in days -->
{% assign shipping_time_min = 3 %} <!-- Minimum shipping time in days -->
{% assign shipping_time_max = 5 %} <!-- Maximum shipping time in days -->
{% assign min_days = processing_time | plus: shipping_time_min %}
{% assign max_days = processing_time | plus: shipping_time_max %}
{% assign today_date = 'now' | date: '%Y-%m-%d' %}
{% assign min_delivery_date = today_date | date: '%s' | plus: min_days | date: '%b %d' %}
{% assign max_delivery_date = today_date | date: '%s' | plus: max_days | date: '%b %d' %}
<p><strong>Estimated Delivery:</strong> {{ min_delivery_date }} - {{ max_delivery_date }}</p>
Step 4: Customize the Message
Modify the text within the `<p>` tags to match your store’s branding (e.g., “Your order is expected to arrive between…”).
Step 5: Save & Preview the Changes
- Click Save in the code editor.
- Go to a product page and refresh to see the estimated delivery date displayed.
Step 6: Test Different Scenarios
- Change the processing and shipping time variables to verify accuracy.
- Place test orders to ensure the calculations align with actual delivery times.
Pro Tips for Accurate Estimated Delivery Dates
✅ Factor in Business Days & Holidays – Ensure your estimates exclude non-working days when applicable.
✅ Offer Multiple Shipping Options – Display different EDDs based on shipping speed (e.g., Standard vs. Express).
✅ Use Location-Based Estimates – If you ship internationally, adjust the timeframe for different regions.
✅ Keep Your Shipping Speeds Updated – If carrier delays occur, update your estimates accordingly to avoid customer disappointment.
✅ Communicate Clearly – If there are unexpected delays, notify customers proactively via email or SMS.
Final Thoughts
Adding an estimated delivery date to your Shopify store is a simple yet powerful way to increase conversions, reduce customer inquiries, and improve overall satisfaction. While third-party apps exist, using custom code gives you full control and flexibility over how EDDs appear on your site.
By implementing the steps outlined in this guide, your customers will have a clear expectation of when their orders will arrive, making them more confident in their purchase decisions.
Now it’s your turn—try adding EDDs to your Shopify store today and watch your sales and customer trust grow!
Frequently Asked Questions
What is estimated delivery date?
An estimated delivery date (EDD) is the date when a package is expected to arrive at its destination. It’s a key part of the online shopping experience and can impact customer satisfaction.
Where can I find an EDD?
It can be displayed at various times and locations such as on the product page, at checkout, in the order confirmation email, on the branded tracking page, in shipment notifications, or on the “Thank You” page.
Why are accurate EDDs important?
They can help build trust and encourage repeat business, they can help reduce customer anxiety and uncertainty, and they can help retailers manage their inventory and optimize their supply chain.

Up to 64% Lower Returns Processing Cost

How To Offer Free Shipping on Your Ecommerce Store & Still Make a Profit
In this article
3 minutes
- Top 12 Shipping Strategies For Making Free Shipping Profitable
- Top 5 Pricing Strategies For Making Free Shipping Profitable
- Top 8 Marketing Strategies For Making Free Shipping Profitable
- Top 7 Supply Chain Strategies For Making Free Shipping Profitable
- Top 7 Returns Optimization Strategies For Making Free Shipping Profitable
For any online Seller wanting to get ahead of the pack, offering fast and free shipping is a must. But shipping is not really free, is it? And it can creep into your margins. We have created THE ultimate guide on how to offer free shipping and still make a profit. Keep reading to learn nearly 40 proven ways you can offer free shipping profitably and radically improve your bottom line.
Top 12 Shipping Strategies For Making Free Shipping Profitable
Free shipping has evolved from a bonus perk to an expectation among online shoppers. But for businesses, it presents a major challenge—how do you cover shipping costs without eating into your profit margins? The answer lies in smart logistics and strategic planning. By negotiating better rates, optimizing fulfillment processes, and leveraging hybrid shipping solutions, you can offer free shipping while still protecting your bottom line. This guide explores strategic shipping best practices for turning free shipping from a costly obligation into a competitive advantage, ensuring both customer satisfaction and long-term business sustainability.
Read more.
Top 5 Pricing Strategies For Making Free Shipping Profitable
Pricing plays a critical role in both conversion rates and profitability, and when it comes to free shipping, it’s essential to strike the right balance. Simply absorbing shipping costs without adjusting your pricing model can lead to financial strain. Instead, businesses need to strategically incorporate shipping expenses into their pricing structure—whether through slight price adjustments, minimum order thresholds, or dynamic pricing models. This article breaks down five proven pricing strategies that help businesses recover shipping costs while remaining competitive, ensuring that free shipping enhances rather than erodes profitability.
Read more.
Top 8 Marketing Strategies For Making Free Shipping Profitable
Free shipping is a powerful marketing tool that can boost conversions, build customer loyalty, and increase average order value. However, if not executed strategically, it can also lead to shrinking margins. The key is to use free shipping as a lever to drive sales, whether through limited-time promotions, loyalty programs, or strategic bundling. This article explores eight marketing strategies that not only make free shipping sustainable but also turn it into a growth engine for your business. If you’re looking for ways to attract customers and keep them coming back without compromising profitability, this is the guide for you.
Read more.
Top 7 Supply Chain Strategies For Making Free Shipping Profitable
Behind every successful free shipping program is a well-optimized supply chain. Whether it’s managing inventory more efficiently, leveraging regional fulfillment centers, or adopting dropshipping as part of your operating model, businesses that refine their logistics can reduce costs and make free shipping a feasible, profitable option. This guide takes a deep dive into seven key supply chain strategies that help ecommerce sellers minimize expenses while still offering fast and affordable shipping. If you want to turn free shipping from a financial drain into a business advantage, these supply chain optimizations are a must-read.
Read more.
Top 7 Returns Optimization Strategies For Making Free Shipping Profitable
Returns are a natural part of ecommerce, but without the right strategy, they can quickly become a financial burden. The good news is that returns optimization can help businesses reduce unnecessary refunds, streamline reverse logistics, and even recover revenue. Whether it’s improving product descriptions to prevent returns, offering in-store drop-offs, or leveraging ecommerce programs, this guide outlines seven actionable strategies that make free shipping sustainable by keeping your returns program cost-effective. If returns are eating into your margins, these strategies will help you regain control.
Read more.

Up to 64% Lower Returns Processing Cost

Is Shopify Worth It?
Since 2020, there’s been massive growth in e-commerce. While on the surface this shift benefits any company with an e-commerce platform, many brands still find it challenging to compete against marketplace giants Amazon and Walmart. Even with sophisticated tools like Shopify, brands struggle to gain a foothold in their direct-to-consumer approach when larger platforms have the traffic and order fulfillment infrastructure to offer lower prices and faster shipping. In such an unlevel playing field, is it even worth it to develop a direct-to-consumer ecommerce platform? Put more simply: is Shopify worth it?
Is Building a Shopify Website Worthwhile?
In the webinar titled “Are Shopify Websites Worthwhile”, Cahoot CEO Manish Chowdhary speaks with representatives from successful direct-to-consumer brands Boogie Board and JumpOff Jo to discuss Shopify pros and cons, learning how these brands capitalize on what Shopify has to offer for direct-to-consumer marketing. This discussion uncovers three key takeaways:
- Different e-commerce platforms offer different advantages
- Letting go of the “us vs. Amazon” mentality fuels growth
- Successful brands implement platform-specific strategies
Pros That Make Shopify Worth It
In examining Shopify pros and cons, Boogie Board Marketing Director Katelyn Stiver identified a key benefit of this direct-to-consumer platform: immediate access to customer data. On Amazon, sellers can view only aggregated and anonymous sales data. As the owner of the marketplace, Amazon keeps customer information to itself. On Shopify, sellers gain much more visibility into shopper buying behavior and demographics.
Additionally, Stiver pointed out the difference in time it takes to build sales momentum for new products. On Amazon, it can take 6-8 months to see significant sales of a product. They gain the same momentum on Shopify in just 2-4 weeks. The massive difference is due largely to the highly competitive Amazon landscape, whereas a seller’s Shopify store has no immediate competition once shoppers reach it.
Companies like Boogie Board can see who is buying on their Shopify store to immediately make informed decisions for targeted marketing and direct-to-consumer advertising campaigns. “It doesn’t take long to start getting that data and using it, so it’s incredibly worth it,” explains Stiver.
Direct-to-Consumer Helps Create Winners
This direct, immediate feedback can also supercharge a brand’s product development. As Stiver explains, a lot of people still think the best way to launch a product is to go directly to Amazon. Shopify offers a better start, while launching on Amazon simultaneously ensures long term growth. “Put everything on every platform and watch how customers behave,” she says.
This gives direct-to-consumer platforms like Shopify value when testing new products, exclusive offerings, and targeted messaging for an already established brand. The customer data reveals which products have the potential to do well on Amazon long before sales in that marketplace gain traction.
Tailored Products and Messaging
Utilizing Shopify also gives brands the opportunity to feature a full catalog of products on their own website instead of relying exclusively on the handful of products that do well on Amazon. As Chowdhary points out, Amazon shoppers tend to be in “price-shopping mode,” which means lower-priced products tend to do better. By contrast, higher-priced, premium products do better on direct-to-consumer sites.
As Denise Abraham, GM of Private Label at Kaspien, points out, this means brands could promote different products and unique messaging for each e-commerce platform. “We’re pushing our consumers to targeted listings based on customer data,” she explains. “We’re even entertaining the idea of using the data to make products specific for each market.”
Developing Strategies to Stay Competitive
Shopify is growing, which means there is an appetite among customers to buy directly from brands. That said, progressive brands need to look at what will happen down the road. If the Marketplace is going to continue to dominate, strategy must reflect that. It is not possible for most brands to achieve the same low-cost, fast-shipping experience as Amazon or Walmart without help from an industry-leading Shopify 3PL.
For brands to take advantage of what different e-commerce platforms have to offer, they must let go of the “us vs. them” mentality. Price-driven customers will always gravitate toward Amazon and Walmart. If a brand is not identifying best-selling products and launching them on these marketplaces while simultaneously building a direct-to-consumer line with Shopify, they are missing out on a huge market. “If you sell on both platforms and your customer starts on your site then purchases on Amazon, it’s no biggie,” says Stiver. “You might lose the customer data, but you still get the sale.”
Using Shopify to Grow in All Markets
Tools like Shopify provide immediate data and feedback. This helps identify which products will perform better on different platforms, giving brands the option to build growth on their own website as well as Amazon. While some consumers want the best price possible, others prefer to purchase directly from a brand they trust and recognize, valuing intimacy and exclusivity over low prices. Companies like Cahoot offer an extensive US fulfillment center network to help brands match pace with the retail giants, making it easier than ever to build and maintain a direct-to-consumer platform for exclusive product lines and the intimate experience some customers crave.
Building a Better Customer Experience
Successful brands make sure the customer has the best experience possible, regardless of where they shop. Thrifty customers want the best price for a given product, while customers who prefer a premium experience want to interact directly with the brand to ask questions and gain access to exclusive products. A robust direct-to-consumer website boosts brand’s credibility and allows it to tell its story more accurately before expanding onto larger platforms.
The ability to craft a brand story that resonates with customers and offer exclusive products and an intimate shopping experience are huge benefits of Shopify. Everything from product development to brand voice and messaging can be fine-tuned before being released into the wild of the marketplace. By utilizing different strategies across multiple e-commerce platforms, brands can leverage the massive infrastructure and consumer reach of Amazon and Walmart while still maintaining a direct line to customers through Shopify.

Offer 1-day and 2-day shipping at ground rates or less.
Related Blog Posts

Packaging Design That Will Make Fulfillment Easy and Cut Costs
E-commerce Revolution with Strategic Packaging Solutions Like anyone in the e-commerce world, small business owners are always looking for ways to streamline their operations

USPS Hazmat Shipping Guidelines – How to Ship Fast While Staying Compliant
Hazardous Materials What is a Hazardous Material? What Items Are HAZMAT? Classes of HAZMAT Items What Classes Can Ship on Various USPS Services?

Profitable Order Fulfillment Strategies for Shopify Ecommerce
Insights and strategies for digital marketing and eCommerce on Shopify and how the right order fulfillment strategies can lead to faster growth, particularly in times of financial stress and inventory supply chain issues.

Up to 64% Lower Returns Processing Cost

Profitable Order Fulfillment Strategies for Shopify Ecommerce
Listen to podcast here.
Podcast: Digital Marketing Intelligence for Shopify – Ask the Experts – Episode 94 – Manish Chowdhary (E-commerce Case Study) – RSS.com
This podcast focuses on providing insights and strategies for digital marketing and eCommerce on Shopify. The topic of the episode is profitable order fulfillment strategies, and the guest is an award-winning shipping logistics entrepreneur and eCommerce expert named Manish Chowdhary. He is the founder of Cahoot, the world’s first peer-to-peer order fulfillment services network, and holds 10 US patents for his inventions. The episode discusses how the right order fulfillment strategies can lead to faster growth, particularly in times of financial stress and inventory supply chain issues. Manish shares his insights and expertise on eCommerce strategy, warehouse logistics optimization, and supply chain issues.
Marissa Morgan:
Welcome to Digital Marketing Intelligence for Shopify, Ask the Experts. Our weekly podcast and video show, offers Shopify’s ecosystem of brand owners, store developers, app providers, investors and marketing agencies, insights from case studies and discussions, with marketing and eCommerce experts, grow faster with tips, tricks, and proven strategies, and learn what’s new in eCommerce digital marketing for 2022 and beyond.
Hello everybody and welcome to our next episode of Digital Marketing Intelligence for Shopify, Ask the Experts. I’m Marissa Morgan, I’ll be your show host today, and I’m also the business development manager for Ngagge. On behalf of myself and the entire team at Ngagge, I want to welcome you to today’s show. Today’s topic is all about profitable order fulfillment strategies and why right now they are the key to faster growth, especially during crazy financial times and all of these crazy inventory supply chain issues that we’re having across the globe. Our guest is an award-winning logistics entrepreneur. He is an eCommerce expert. He is the proud owner of more than, well, let me say, he’s got 10 patents, okay, that’s pretty incredible. And he’s also the founder of Cahoot, the world’s first peer-to-peer order fulfillment services network. What is that? Well, we’ll find out more about what that means in just a moment, when I introduce you to our special guest,
Before I do, of course, a quick word from our sponsor, Ngagge, before we get started. We’re excited to share that Ngagge recently launched our first app called SMS Messaging for Shopify Stores, in May of 2022. So that app is live right now, and what that app does is make it incredibly easy for Shopify store owners to not only build their customer lists faster, increase sales, but also save time with automations and create personalized campaigns to really improve the customer shopping experience. With our SMS messaging app, there is no code support bots, so it’s very easy to install and use, even if you don’t have a tech team. And right now with open rates of email kind of sitting around 20% or maybe even less, I mean, think about it, when’s the last time you opened a business email that was maybe a marketing email that you didn’t ask for? I mean, maybe you didn’t even open it. Right now the SMS open rate is 98%, maybe even higher.
So the likelihood that if you are not using SMS marketing right now, that you’re missing out on business is very, very high. So you can check out our app, Shopify SMS, Ngagge Shopify SMS at www.ngagge.com. That is www.ngagge.com, where you can sign up for a free 30-day trial of the app. And with that trial, you’ll also get 500 free SMS messages to start using right away so you can take the app for a test drive. So if you’re not using SMS, no time like the present to take advantage of the Ngagge SMS for Shopify Store app, which is available right now, ngagge.com.
Okay, it is time for me to introduce you to our special guest. He is joining us from New York. His name is Manish Chowdhary. And Manish’s incredible career in eCommerce started in his dorm room. He actually founded multiple industry leading companies while in his dorm room at the University of Bridgeport. By the way, that’s Connecticut, that’s where I’m from originally, so we have a common tie there. He is a logistics entrepreneur who also founded Cahoot, which I mentioned is the world’s first peer-to-peer order fulfillment services network for brands and retailers. His specialties include eCommerce strategy, business methods innovation, inventory supply chain and logistics optimization. And as I mentioned, he holds 10 US patents for his inventions and has also been featured in couple small publications like the New York Times, Forbes, International Retailer, and many other leading publications. He is a 40 under 40 competition winner and holds an honorary doctorate, which is the highest honor from his alma mater. Cahoot, his company, was recently named a Spring of 2020 SourceForge Top Performer and is also a five star rated company, not only on Amazon, but also Shopify, which is impressive.
And if this wasn’t impressive enough, he’s got an active social life as well. He’s an avid traveler and he’s actually traveled to more than half of all the Caribbean islands, which I find very impressive. I’m a big island lover myself. And he’s also a big fan of an IPA and is a big fan of trying different IPAs. So much fun. Manish, thank you so much for joining us today. We’re excited to have you as our guest expert on logistics and fulfillment and what that ultimately means for companies right now in a time of crazy financial stress and inventory supply chain issues, and of course what that means for happy customers. So thank you so much for joining us today.
Manish Chowdhary:
Marissa. Thank you so much for having me, and thank you for such a generous intro. I think it is more than I would ask, and I really appreciate all your audience listening to this show today. So thank you.
Marissa Morgan:
Oh, you’re so excited to have you. And you know what, that was only half of what I could have said for an intro for you. I had to take some time and leave out some things for time’s sake. But you have a very impressive background, not only in eCommerce, but obviously right now with logistics optimization and helping companies deliver obviously their goods and their services to the end user. But I want to ask you, because this is something new to me, what exactly is peer-to-peer order fulfillment? What does that mean?
Manish Chowdhary:
Yes, Marissa, peer-to-peer order fulfillment is a term that Cahoot has coined. Essentially it is about collaboration. It is brands and retailers collaborating and working together to make free and fast delivery affordable, no matter which channel you sell on. So on the Cahoot platform, brands and retailers that have warehouses of their own, that have excellent fulfillment metrics for their own orders, and if they have excess space in their warehouse, they have the opportunity, for the very first time, to join Cahoot as a fulfillment partner. And those are the warehouses Cahoot utilizes to place our client’s inventory, the seller’s inventory. And putting them all together, Cahoot has created this large nationwide network. Maybe an analogy might be something like an Airbnb, how Airbnb helped homeowners unlock new revenue stream by renting out their spare bedroom or their spare apartment. So Cahoot is making that same opportunity available for millions of sellers that have warehouses of their own.
So this is a unique opportunity and the advantage of all this to our sellers, to our clients, is lower cost, is because we take all those savings and pass it back to our clients. So that is what peer-to-peer collaboration is all about and peer-to-peer order fulfillment services network.
Marissa Morgan:
Well, that sounds like a win-win, just like I feel, that was a great analogy, Airbnb has been a huge win for property owners because it’s true, there’s probably a lot of entrepreneurs and businesses out there that have the space and don’t use all of it. So why not go ahead and outsource that space to other retailers, other brands, other companies that are looking for space and create almost this incredible network, like a spider web of opportunity for different brands to have their product in different regions.
Manish Chowdhary:
Yes. And this is particularly more relevant in today’s economy because industrial space or warehouses, space capacity is at all-time low. In fact, you cannot find warehouse space even if you wanted to. And as a result, the rent is at an all-time high. So if you were to go to a traditional 3PL, a traditional warehouse, you’re going to pay exorbitant fees. If you’re looking to rent a new warehouse space, you cannot find, or if you do find, you would have to Ngagge in a multi-year lease at a premium pricing. So just like, again, I’ll take the Airbnb example, during the 2008 recession when Airbnb got its start, people were looking for more affordable ways to make money, to stay and live more affordably or rent a room more affordably. And that’s what Cahoot is doing in the current inventory supply chain and the fulfillment world, which is a boon for both the people that are fulfillment partners for Cahoot, but more importantly, the sellers that are looking for relief.
Marissa Morgan:
Well, I know there’s a lot of benefits and I think we’ll talk about some of those benefits during our time together today. But again, it sounds like a win-win, it sounds like great way to also, I mean, do something good for the environment, because if you have products that are within the same state as the buyer, obviously your carbon footprint in getting those products to those buyers is going to be a lot less, less potentially trucks on the road. And this is exciting to me, I just feel like there’s so many benefits all around from the obviously experience of the buyer to get that product in a shorter amount of time, which we know Amazon has really conditioned all of us to expect things within two days really, is almost the expectation now. Would you agree?
Manish Chowdhary:
Yes. In fact, two days was the expectation two years ago, Marissa. In fact, most Amazon buyers expect, if you’re living in urban areas like Manhattan or New York or Los Angeles, shoppers expect the delivery to be next day for most items. In fact, Amazon itself has been raising the bar on fulfillment. So almost 40% of Amazon’s products are being delivered in one day now. So two day was-
Marissa Morgan:
Two day’s old news?
Manish Chowdhary:
Yeah, it’s delivered. So the world is moving even faster. I know it’s crazy, but the shoppers, like if I wanted wanted soccer goalposts for my kids birthday party on Saturday and it’s Friday and I don’t want to drive and go and pick up and spend two hours. And so people will make decisions, shoppers are making decisions based on the delivery promise, and it’s so important too. And that’s where a lot of Shopify sellers, a lot of any seller, on any market, on any channel, can win big using delivery as a strategic competitive advantage.
Marissa Morgan:
I love that. I love that. And I can totally understand this must get it the next day kind of mentality because a lot of us in general, humans in general, we tend to juggle, we tend to multitask, we tend to procrastinate. And most of us are not always planning weeks in advance for the things that we think we’ll need because maybe we don’t even know we need them yet. So I think as a culture, the last minute shopping world has also increased in size and the number of people kind of acting in that space because now we know we can get things last minute. And I think just a lot of our listeners are going, “Yeah, I’ve done that before, where I’m like, shoot, I need this tomorrow.”
So let’s just, for our audience watching the video show of today’s talk, I’m going to share a quick outline, for those of you listening on the podcast, we’ve doven into this, but I’m going to read through this for you. Again, today we’re talking about profitable fulfillment strategies and really why they’re the key to faster growth, especially right now during difficult financial times. We’re going to get into why you can’t rely on platform locked services like FBA. We’ll also have Manish walk us through how one to many solutions unlock new growth opportunities, increase economies of scale, and reduce complexity as well. And I know as we work through this talk together, Manish is going to share countless examples of different clients and what they’ve done and how they’ve connected to gain that edge through especially the peer-to-peer order fulfillment opportunity. So I guess, can you help me understand this concept of FBA, this platform lock fulfillment and what FBA is? Because that’s a term I’m not super for familiar with.
Manish Chowdhary:
Sure. FBA, as lot of our audience probably know, is fulfillment by Amazon. And we’re calling it platform locked fulfillment or platform locked services because FBA, for example, would give a different treatment to orders that originate from Amazon and how they fulfill them, and I’ll break this down for you, as opposed to orders from some other channel, because they’re playing favorites. Another example would be Walmart fulfillment services that is designed to help Walmart sellers succeed on Walmart alone. But when you think about the seller, most sellers, especially the Shopify sellers are selling on their DTC site and many of them are selling on marketplaces, both Amazon, Walmart, eBay, could be Target, could be Macy’s, but they’re also doing wholesale business. So if the merchant were to select a platform locked service, which means they need to now find other services or other order fulfillment solutions for their other needs, and that creates increased complexity, increased cost, and it is punitive because FBA, as you know, if you send your products to FBA, you get access to the Prime shopper, but it’s very difficult to get access to them if you don’t use FBA services.
So there are a lot of things that are happening and there is an antitrust case that’s pending as well, it’s called coupling. And I can take a pause here if you have questions, but I can keep breaking this down further into why this is not the best choice for the sellers, what are the advantages and what are some of the disadvantages.
Marissa Morgan:
No, I’m glad you broke that down for me. So FBA is fulfillment by Amazon, and as a customer, this helps me understand why sometimes when I’m shopping on Amazon, certain products can be shipped to me within that day or two timeframe, and then others are not. Even if it’s the same exact product or just from a different company, it’s because some of these companies have this agreement or Amazon actually holds this merchandise, versus other companies that may be selling through Amazon, but shipping themselves basically. You’re just helping me understand all the things that are happening behind the scenes, especially from a consumer perspective. So sounds like there’s benefits to FBA or some of these platform locked services, but then also there’s definitely some drawbacks as well.
Manish Chowdhary:
Yes, most definitely. I mean, there are some major benefits to platform locked services. For example, FBA, you get access to the Prime shopper. The minute you send your products to FBA, they are available to the Prime shopper, which is the most affluent, the high spenders on Amazon. And these are people that are over 150 million or over 100 million members in the US alone, which is probably one out of three. If you take out the kids and the elderly, I mean-
Marissa Morgan:
By the way, I call the Prime shoppers part of AA, and that’s Amazon addicts. I am a Prime shopper, but kind of by default, my husband’s more of a shopper than I am. But yes, I can feel the money that is spent through especially these Amazon Prime accounts. And when people shop at the top, they have the option as a Prime member to say, “Hey, I just want to see the Prime options,” which are the options that are probably using FBA.
Manish Chowdhary:
And many times I think Amazon only displays the Prime offers by default or Prime offers get priority over non-Prime offers. So if you, Marissa, are a Prime member and you log in with your Prime account on Amazon, the chances are that the products that you will see will be primarily Prime eligible products before you see non-Prime eligible. So because Amazon is all about having the customers having a great shopping experience, which means not only are you finding the wide selection of products, low prices, but also amazing delivery, which is one or two day, which has been one of the top advantages that Amazon has over other retailers like Walmart, Target, Macy’s, and that they continue to drive the flywheel through that delivery experience.
Marissa Morgan:
Now, I know you wanted to get into why you can’t rely, so obviously there’s benefits, but what is the main reason or reasons that you think eCommerce brands and people who are obviously shipping to customers, can’t just rely on the platform locked services?
Manish Chowdhary:
Several stories. Just was speaking with a large seller, this is one of the top Amazon sellers, and you would think that they would have an in with Amazon, they would be given preferential treatment, and these are people who are doing nine figures on Amazon. So not seven figures, not six figures, nine figures. And they wake up one day and they find that their inventory limit or how much inventory you can send to Amazon has been slashed to less than half. And that is a huge problem because Amazon just announced the second Prime Day, which is coming up in October 11 and 12. So now how are you going to manage and how are you going to … if your inventory limits are slashed, that means you cannot send all your products to Amazon. You cannot send them in enough quantities. And on top of that, Amazon is taking very long to receive these items.
So from the time you send the items to Amazon, it could take weeks for them to be received. And during that time, you cannot send them anything new. And if your product goes out of stock, let’s say you have five days of inventory and it’s going to take Amazon 10 days to receive it, after five days, your product goes out of stock, which means your seller rank drops, which means your inventory performance index, these are all Amazon terminologies, which is the way how Amazon keeps track of how much space or how much limit to allocate to each seller because sellers do not have unlimited quotas, so as to speak, they’re limited and restricted.
So now while there are many advantages, but if you’re a seller, now you are in a jam that if Amazon is such an important sales channel, you rely on that for your sales. You bought containers and containers of inventory that you’ve paid for from overseas, now your money is locked up and you can’t sell it on Amazon because you can’t get into FBA. And if you don’t get into FBA, you don’t get access to the Prime shopper, who are the ones who make most of the sales. So one of the challenges is that. There are many more challenges, I can talk about a few more. The second is multi-channel fulfillment. So let’s say you get all your inventory into Amazon, you’re selling on Shopify and you want to fulfill Shopify orders using your Amazon fulfillment services. Guess what? You’re going to pay up to 50% more to Amazon to fulfill your Shopify order because Shopify and Amazon are at war.
So Shopify went and acquired another order fulfillment provider called Deliver. So that’s the same thing, Shopify is not there to promote Amazon sales. So now if you start using Deliver, for example, which is a more recent acquisition, so this is a prediction, that they’re going to create policies that favor Shopify. So while things are good for the shopper, it is very difficult for the merchant to make money. And if the seller does not make money, seller does not profit, they’re not going to stay in business, and therefore they cannot innovate, they cannot bring the next product. So this becomes almost a self-fulfilling prophecy, that it was good to a point, and at some point it becomes bad and the sellers have to find other alternatives that are neutral. To ship an order, whether it comes from Amazon or Shopify or eBay, it’s the same effort, same everything, why should one cost more than the other?
Marissa Morgan:
And at the end of the day, it’s so sad to think that the only people that end up happy are the huge companies like Amazon and the consumer, because the middleman, which is the creator of the product or the inventor of the product or the brand founder, it’s like these people have put in so much work to create what they’ve created. So it’s so sad to think that the one person who ultimately gets the most screwed is the person who’s got the beautiful product to offer.
Manish Chowdhary:
That’s exactly it, and that is why we created Cahoot to be platform-agnostic. Same thing with Walmart. Walmart is favoring Walmart fulfillment services. So if you want to get on the fast track to get the two-day badge to attract the Walmart shopper, Walmart is doing, but it has tons of limitations, Walmart fulfillment services will not ship products internationally. So if you get an order from overseas, now you have to figure out another solution. In case of FBA, any product that’s oversized is very expensive to ship. So if you want to get access to the Prime shopper, it’s a problem. Q4, which is the holiday season, storage fees for FBA are three times as expensive as the rest of the year. So you can imagine, one, you can’t get your product, you’re lucky if you get it in, if you get it in and if you get it in late, if you miss out on sales, you’re going to pay Amazon three times.
While there are benefits, of course, it is not all disadvantaged, but these are the limitations, these are the challenges that sellers are facing and that’s why we created Cahoot to make it a level playing field. We want to think like the seller, what’s best for the seller? And if you want to do wholesale, we know most ecommerce brands want to also partner with other independent retail stores. For example, we have a client called Cali’s Books, they sell to Barnes & Noble, they sell to Nordstrom, so they want to send pallets and cases or books to these local bookstores. And that’s not something that FBA can do, that’s not something that WFS can do. So these are the challenges with platform locked services, because they were not designed to promote the seller, they were designed to promote the revenue for the platform.
Marissa Morgan:
Gosh, at the end of the day, something that we talked about before the show too, the end of the day, you said, and I’m going to quote you, I hope that’s okay, you said half of your shopping experience is your shipping experience. So what’s crazy is everything you’re talking about, the good, bad, and the ugly, all obviously affects the business, let’s say the eCommerce business. But the eCommerce business, especially the one that understands the consumer experience, the customer experience, that business is doing its best to make the best choices and put the best options in play so that ultimately the consumer has a great experience.
So it’s all intertwined, but it’s like everybody’s got their own, selfishly they have their own interests at play. And it’s kind of crazy to think that Amazon makes money, percentages off sales already, and you think that was the original business model, they make money by selling Joe’s product, they make a little cut. But now it’s gone way above that and they’ve now monopolized the entire process of selling and shipping, so that not only are they making a profit on the products themselves, but they’re making a ton more on housing, and like you said, getting the products in. It’s just insane to me. It’s insane. But now I know why Jeff Bezos has private jets and all this stuff, I mean, he’s raking in the dough, it’s insane.
Manish Chowdhary:
Well, you’ve forgotten the most biggest cash cow that Amazon has just created, advertising. Previously it was you get paid to sell the item on Amazon, that was great. Now in order to sell the item, you need to spend an insane amount of money on advertising.
Marissa Morgan:
To be the top featured product of that specific category for this many hours of the day or whatever. It’s insane.
Manish Chowdhary:
And then where’s the next area to get a larger share of the seller’s wallet, is the order fulfillment services. Because if I can create coupling, it’s called, which is what the US Antitrust is calling it, in their proposed bill, that it’s like Google favoring Google reviews over Yelp reviews for restaurants. But because you’re using the Google Chrome browser, you don’t have much of a choice because Google makes the decision on-
Marissa Morgan:
What you see.
Manish Chowdhary:
… restaurant reviews to show, so that is where there’s a problem. And especially the ecommerce brands on Shopify are looking to create a direct relationship with their customers, the DTC brands. So I spoke with a DTC brand this morning, that is into sustainability, they have these eco-friendly bags and so on, and they’re using FBA, but FBA uses plastic for all their shipment. So it goes against the ethos of the brand, that brand wants to sell eco-friendly product, but it comes loaded with plastic packaging and plastic tape, and that’s a big problem. But then because they make a lot of sale on Amazon, it’s very hard, very difficult for them to distance or move out of Amazon, then they lose the Prime shopper. So there’s some major challenges.
Marissa Morgan:
Well, I love that Cahoot is creating, let’s say, a more fair and better and economically ad advantageous way for people who have a product or a brand or eCommerce business, to be able to give the customer a great shipping experience and ultimately kind of stay out. It kind of just sounds like an awful rat race. It sounds sadly like a dictatorship. But tell us a little bit more about why shipping and order fulfillment is such a big part of the customer experience, because I know we were talking about that right before we hit record and started our show. You said it’s not just about the website anymore and the website being beautiful, and then you said that half your shopping experience is your shipping experience. Share a few thoughts you might have on that whole idea.
Manish Chowdhary:
Exactly right, Marissa, half your shopping experience is your shipping experience. I’ll take you down the customer journey. Customer comes to your website, they find your product, they love the product, got great pricing, and on that product page they decide to add the item to cart. What’s the next thing they’re thinking about? When will this product arrive? Let’s say I have a time bound shipment or just as we as humans are, we hate uncertainty, even if it’s going to take four weeks, tell me now, in the absence of clear, concise instruction, it is left for the shopper to guess, and that guessing leads to cart abandonment. And more importantly, let’s say some Shopify and other DTC brands will display four to seven days or three to five days.
Now it’s very difficult for the shopper to figure out when does the clock start? Four to seven days, is it four to seven business days? Is it four to seven calendar days? Is it starting tomorrow? Is it starting today? So the customer cannot make those, you’re asking the shopper to do too much math and they’re not willing and cart abandoned. So now let’s say you’ve done all that great stuff, you’ve got the shopper, they’ve even went through the checkout, now they’re thinking two to three days, then start putting all those customer inquiry, where’s my order, because customer has no visibility onto when the order will arrive. And that’s where some of the app that you have even, Ngagge, would be very, very effective in customer communication, because now the order has to be shipped and the merchant has to balance the shipping cost because customers are more and more used to free shipping, free and fast shipping.
So if your product is shipping from let’s say Florida to California, you’re paying the highest shipping rate for what we call zone eight, because as the furthest distance is traveling, or from Florida to Seattle, Washington. One, it’s going to take longer for the product to arrive and it’s going to cost the seller more because everything nowadays is based on the distance the package travels, the dimension of the packaging and the weight of the item. So you need to have your products widely distributed. And then because if you don’t do that, you have less, fewer chances of getting a positive review from the customer because if the product arrived later than they expected, order cancellation rate goes up and then certainly the customer delight element goes down so that the ecommerce brand recall value suffers. So there’s several reasons why the shipping and delivery experience is so paramount to the overall customer experience.
Marissa Morgan:
Well, I would love to know a little bit more also about this idea of peer-to-peer order fulfillment, because I know people are probably listening right now going, “Huh, I’ve only been using Shopify or I’ve been looking into …” So is Deliver currently active on Shopify?
Manish Chowdhary:
Yeah, Deliver is active. I mean, Shopify acquired them a few months ago.
Marissa Morgan:
Okay. So it is a way right now for people on Shopify to be fulfilling their orders through Shopify’s own kind of in-house process. But if someone’s at home right now saying, “Oh my goodness, this is the answer I’ve been looking for.” They ship all over the United States, maybe they have been using order fulfillment by Amazon and have been incurring extra fees and extra overhead and the stresses of it, peer-to-peer or as you said, one to many solutions obviously give more growth opportunities, allow businesses to keep more money in their pockets. So what is the first step for a company, whether they’re on Shopify or they’re on another platform, or maybe they are just operating through a website and it’s kind of a smaller in-house system right now, what is the first step to becoming a part of what Cahoot has created, this peer-to-peer order fulfillment process?
Manish Chowdhary:
Yes, Cahoot is the most merchant centric and merchant inclusive order fulfillment services solution on the market. So if you have a warehouse, we’ll use the Florida example, if you’re a merchant in Florida, you need to have your inventory distributed in a few different places. Let’s say you want to start small, you’re sending a lot of orders to California, you’re sending a lot of orders to Chicago or New York. Then Cahoot has the software and the technology where you don’t have to dismantle, you don’t have to get rid of your order fulfillment operations. You can keep your order fulfillment operations and only choose to outsource a portion of the orders that would be served, let’s say by Cahoot, in those regions. And that is very unique to Cahoot because that kind of technology is not accessible because it’s very complicated for merchants to now figure out which order should I fulfill, which order should Cahoot fulfill or which orders should somebody else fulfill.
So we don’t believe in rip and replace, we believe in letting the merchants pick the path that’s most comfortable, that they’re most comfortable with. And then soon they realize, oh wow, my California customers are getting their products faster. I’ve cut my shipping costs down by 20, 30%. And the Cahoot technology also helps them improve their shipping in their own warehouse because all that great innovation that we have, the 10 patents that you mentioned and so on, we also give the seller those tools to do that efficiently in their own warehouse. And of course for the people who want 100% outsourcing or they’re using a provider that they’re not happy with or they believe that they’re not happy with, you can come to Cahoot, fill out or contact us form, we can do a free savings analysis, we can evaluate your current costs and we can tell you how much money could Cahoot save you.
And that alone is very valuable because half the battle is knowing the power of information and power of what is out there, what can help my brand. And with Cahoot, if you go full-blown and you spread your inventory to Target, let’s say two-day delivery, now you turn on and make that promise on your website, be bold and say that on your website, “Hey, two-day guaranteed delivery,” watch your conversion rate soar. And then if you combine that with an SMS solution, like Ngagge, you’ve got one-two punch, and that’s what helps the sellers and the shoppers to get that DTC promise and the brand, that is that what an Amazon like experience is on every other channel, not only on Amazon.
Marissa Morgan:
I love this and I love the passion. We are in two different parts of the world right now. You’re in New York, I’m in Minnesota. I literally, I know you guys are listening on the podcast and you can’t see Manish, but I can feel the passion coming out of the screen. He’s beaming and you’re smiling from ear to ear. And as you were talking, by the way, I was listening to you and I pulled up the website, which I had looked at earlier, but right away when you were talking and I went to your website, boom, I happened to notice, because you were talking about Cali’s Books, but I saw this great testimonial from Cali’s Books and it said, “The most impressive part of working with Cahoot is the speed at which B2C orders are fulfilled and the consistently affordable shipping rates obtained.”
And then it says, “With our peer-to-peer network, you get faster, more reliable order fulfillment, at a lower cost and you can boost your conversions with one and two-day shipping,” and that you guys integrate with Amazon, Walmart, eBay, Wish, Shopify, BigCommerce, Facebook, so many. So I think this is a great place to kind of end our talk, because not only did you share obviously the importance of order fulfillment in a shopper’s experience, half your shopping experience is your shipping experience. I think that’s a takeaway that everybody can easily understand. But you shared examples of what works okay, benefits to it, some of the struggles that come along with it. But then ultimately, and I love it, you can totally tout your company and what you guys do because really you offer a wonderful way to navigate something that is very complex, but it doesn’t have to be.
Manish Chowdhary:
Right. And last but not least, an opportunity for ecommerce brands and retailers who have warehouses, to make money. How can we forget that? Because Cahoot is the only organized option they have to make money from their warehouse, and we’ve made it super-duper simple. So for any listeners who have a decent size warehouse, you’ve got great operations and people, this is an opportunity for you to make money. Fill out the contact us form on our website, cahoot.ai, and that may be another opportunity, a way for you to defray some of your cost, not only to elevate your order fulfillment and shopping experience, but also make some extra cash that you can put back in your business.
Marissa Morgan:
I love that. So the website to visit Cahoot and find out more, whether you have a warehouse that you’d love to rent out, basically rent out, lease out some space, share some space, or you have a product that you would love some help getting to your end users in a more timely, more eco-friendly, more economically savvy fashion, you want to be in cahoots with Cahoot, it’s www.cahoot.ai, so that’s www.cahoot.ai. And Manish, if our audience would like to connect with you, do I have your permission to share your LinkedIn as well?
Manish Chowdhary:
Absolutely. I love chatting with sellers, exchanging notes, because I learn so much by speaking to brand owners, operators, because they are in this every single day. So please connect with me on LinkedIn, I’m very active and I promise I will reply.
Marissa Morgan:
You can find him very simply by typing obviously linkedin.com/in/manish, M-A-N-I-S-H, -chowdhary, C-H-O-W-D-H-A-R-Y. And again, for those of you listening on the podcast, I’ll spell his name one more time for you. Manish, M-A-N-I-S-H, Chowdhary, C-H-O-W-D-H-A-R-Y. Manish, this has been, I was going to say, this has been such a great show, but I feel like … as much as I want to say, I feel like we’re just hitting the tip of the iceberg, I do feel like we really got through a lot in a short amount of time and you really helped me, and I know our audience as well, understand more just about the order fulfillment process in general, but the different avenues that are currently available, the pros and cons to each, and a really cool alternative that I think a lot of retailers and eCommerce businesses have not thought about, which is peer-to-peer order fulfillment. So thank you so much for sharing all of your insights with me today and our audience.
Manish Chowdhary:
Thank you, Marissa. Thanks again for having me.
Marissa Morgan:
Oh, it has been a pleasure and I want to congratulate you and Cahoot as well on all of the awards you’ve been winning, on the successes. I know you and I just connected on LinkedIn, so I’m going to definitely keep my eye on you, and I’m sure there’ll be more awards, more patents, and more fortune in your future. So congratulations. And for those of you listening right now, again, you’re probably listening to a podcast, I’m sitting face-to-face through a screen with Manish, the energy and the pleasantry and the joy in this man is just palpable. So check him out on LinkedIn, Manish Chowdhary, and check out www.cahoot.ai to find out how you can benefit from his, truly something you invented, which is peer-to-peer order fulfillment. Thank you again, Manish, and have a great day.
Manish Chowdhary:
Thank you.
Marissa Morgan:
That was an awesome show. I love guests that are passionate about what they do, and when you can feel the passion through a screen, that, to me, is just the coolest thing. So I have so much credit and respect for not only the 10 patents and all the experience that Manish has. He’s clearly a very smart man, starting businesses back in his dorm room at Bridgeport. That right there alone is pretty impressive. But when you pair that with someone who has such passion and joy of life, you really get a business owner that is not only savvy, but someone who is really empathetic with helping people and wanting to really make a mark and make a difference in the world, and especially in the world of eCommerce. So go Manish, go Cahoot. You guys, make sure you check out Manish Chowdhary on LinkedIn, connect with him, let them know you heard the show through the Ngagge podcast.
And also be sure to check out cahoot.ai, and that’s C-A-H-O-O-T, .ai. Whether you are an eCommerce brand looking for help with your order fulfillment process, maybe you even want some help just deciphering what you’re doing now, he said he often helps companies kind of work through what they’re doing now and give them a little screenshot of what that means. Or if you have warehouse space and you’re looking to capitalize on that and put a little extra money in your pockets or in your business, Cahoot can also help you do that. Awesome show. I want to thank you all so much for joining me and let you know that we always welcome you to send us referrals if you have someone you know that is a guest expert in the world of eCommerce and specifically eCommerce platforms like Shopify, Wix, WooCommerce.
If you’re interested in being on this show, you can connect with me and send an email to marissa.m@nggage.com. That’s M-A-R-I-S-S-A .M@ N-G-A-G-G-E .com. And of course, you can connect with me on LinkedIn and you can also connect with our company page on LinkedIn as well. For our company page, just look for the rainbow-colored cog wheel, connect with us there, and you can see all of our past shows as well. Speaking of shows, I do want to let you know that there’s an easy way to check out our podcasts, and you can do that by going to www.ngagge.com/podcast-library. That’s where you’ll find a complete library of all of our shows, with all of the guests. It’s a great place to go to if you have any questions about digital marketing, eCommerce platforms. We love to be your trusted source for digital marketing intelligence, especially when it comes to Shopify and eCommerce platform, so check it out. It is www.ngagge.com/podcast-library.
Thank you guys so much for joining me today. As always, I hope you have a wonderful rest of your day. We’re starting to get into the holiday season. I’m not sure when you’re listening to this podcast right now, but right now it is September, this show is dropping in September. So check back with us, we’ll be having shows every single week throughout the holidays and into the new year, with lots more to come in the world of digital marketing intelligence. And don’t forget to check out ngage.com for the Ngagge SMS for Shopify App free trial available with 500 free messages. Check it out and take advantage of all the opportunities that SMS messaging has for you and your ecommerce brand. You guys have a great day, and thanks again for joining me.

Up to 64% Lower Returns Processing Cost

Your Website vs. Amazon: Win with Free & Fast Shipping & EDDs
Give Your Website Customers an Amazon-Like Delivery Experience
It’s Easier and Less Expensive Than You Think

Sorry Shopify, BigCommerce, Woocommerce, and Magento store owners, Amazon still wants to eat your lunch. Shoppers won’t buy from your website – unless you give them the same fast, date-certain delivery experience they get on marketplaces like Amazon.
Today, 63% of consumers start their shopping experience on Amazon, 25% on other marketplaces, and only 21% on brand websites. And 45% of shoppers abandon their carts due to unsatisfactory shipping options. So, now is the time to level the playing field with Amazon and get a leg up on your competitors with an Amazon-like delivery experience on your website and any other channels where you sell.
The latest consumer research shows why EDDs + fast & free shipping options work:
- 75% wish more brands offered the same level of service as Amazon
- 64% look for delivery options – before putting items in the cart
- 83% said free delivery was the most important factor when ordering online
- 87% are more likely to shop your site again following a positive delivery experience
Here’s what you’ll learn:
- Why E-commerce sales on marketplaces are growing faster than brand website sales
- Rising consumer expectations of date-certain, fast and free delivery
- The impact of shipping offers on conversion rates, cart abandonment, and sales
- Implementing date-certain & fast and free delivery – it’s easier than you think

Up to 64% Lower Returns Processing Cost

Shopify Order Fulfillment: Guide to Choosing the Right Order Fulfillment Option
You’ve put countless hours into creating your product, perfecting your Shopify website, and marketing to grab attention. But have you paid enough attention to your fulfillment strategy? It’s not just a cost center – the difference between poor and great fulfillment has a huge impact on your customer experience and revenue growth.
Depending on what type of product you sell, you have a lot of options for fulfillment. The pros and cons can be tough to parse, and it gets complicated in a hurry.
In this blog post, we’ll explore why fulfillment is so important for ecommerce, your options for Shopify fulfillment, and how to choose the fulfillment service that’s right for you.
Why Your Shopify Order Fulfillment Service Matters
Simply put, a great fulfillment strategy is the difference between keeping up with Amazon and getting buried by it. If you can’t deliver orders quickly, customers will immediately look for a similar product with better shipping options on a marketplace. Surveys show 83% of online shoppers compare prices to a competing product on Amazon when shopping online.
Amazon, Walmart, and eBay have set the bar high for order fulfillment, and unfortunately customers now expect the same high standards from online brands as well.
Ignore fast and free shipping at your own risk – 70% of US consumers expect free shipping even on orders under $50, and 48% of all cart abandonment is caused by unexpected shipping costs.
Having great Shopify order fulfillment will improve your cart conversion and customer satisfaction, leading to more immediate revenue as well as repeat customers.

So you’re convinced – you need to offer fast & free shipping on Shopify, and it can’t break the bank. What are your options?
Fulfillment Services for Shopify Sellers
There are several main fulfillment options every Seller on Shopify can choose from:
- Self-Fulfillment
- Dropshipping
- Using a 3PL Provider
Each fulfillment strategy has its own unique pros and cons. Let’s go over these Shopify fulfillment options in detail:
Self-Fulfillment
If you’re selling small, low-cost items to a fairly local customer base, then self-fulfillment may be the best Shopify fulfillment strategy for your business.
Small items are easier to store yourself, and if your customer base is local, you won’t have to pay too much for shipping. Moreover, products will arrive relatively quickly to the customer because they don’t have too far to go.
Self-fulfillment also means you’ll have full control over product and fulfillment quality. You can choose where and how your products are stored, ensuring that they’re in the best condition possible when they get to customers. If there are errors in fulfillment, you have the power to immediately fix issues. Additionally, self-fulfillment can lead to higher storage costs, especially as your inventory grows, impacting your overall profitability.
The main drawbacks of self-fulfillment are that it’s extremely time-consuming and it isn’t cost-effective in the long run. If you’re fulfilling your own orders, your success comes with a price; more and more of your time will be consumed by managing operations. Every second spent on logistics is a second not spent on growing your top-line revenue. So most brands that start out self-fulfilling choose to outsource fulfillment as they grow.
Dropshipping
Dropshipping is a good option if you have the resources to find reliable suppliers and can successfully manage your relationships with them. With dropshipping, the entire fulfillment process is handled by the supplier or manufacturer, which means you don’t have to invest as much time in it – but you also don’t have control over it.
The key benefit of dropshipping isn’t to be underestimated; you can simplify a huge part of the logistics value chain. Instead of having to worry about shipping products from your manufacturer to a middle location, and then from that middle location to the customer, it goes straight from the manufacturer to the customer.

The main drawbacks of dropshipping are a lack of control over product quality and a poor delivery experience.
For quality, you don’t get to inspect the product before it gets to the customer. You have to rely entirely on the dropshipper, and when things go wrong, you’re left on the outside looking in.
Just as importantly, your customers won’t be delighted by fulfillment provided by dropshippers. Since they’re almost always shipping from one location, the delivery won’t be fast for customers across the country, which can negatively impact customer satisfaction. Since they’re often shipping long distances, shipping is also more expensive than it needs to be as well.
Using a Third-Party Fulfillment Provider
If you’re looking for a Shopify order fulfillment service that offers the benefits of self-fulfillment without all the hassle, then using a third-party provider is your best bet.
The best 3PLs will give you access to a nationwide network of warehouses and carriers, so shipping products will take less time than if you were going it alone – in most cases within one or two days. Furthermore, if a 3PL places your inventory across the country strategically, you’ll always pay ground rates for shipping, so fast delivery will come at low prices.
Third-party logistics providers also work with shipping carriers to negotiate discounted shipping costs, further improving your profitability.
In addition, some 3PLs can even support dropshipping services.
Like dropshipping, trusting a third party means giving up some control over your product before it gets to the customer. This challenge can become apparent with 3PLs that aren’t built for ecommerce, as products get damaged in their rush to fulfill orders. Modern 3PL networks that specialize in ecommerce, though, have very low defect rates and may even improve on your own delivery record.
Of the three Shopify fulfillment options, using a third-party provider is the best option for most Shopify stores. It’s a question of when, not if for most Sellers. Many assume that they need thousands of orders before they can get a good deal with a 3PL, but today’s tech-enabled fulfillment networks are built to be easy to use for merchants of all sizes.
So, if you’re looking for a 3PL, how do you choose one that’s right for you?
Shopify’s Fulfillment Network
The Shopify Fulfillment Network (SFN) is a 3PL fulfillment service designed to streamline the order fulfillment process for Shopify Sellers. With a 3PL network of warehouses across the United States (SFN no longer operates in Canada as of 2023), the Shopify Fulfillment Network allows businesses to store, manage, and ship their products efficiently. This network is built to provide fast and reliable delivery, ensuring that customers receive their orders promptly and in excellent condition. However, this service was announced in 2019 and still outsources fulfillment through Flexport.
Using the Shopify Fulfillment Network (powered by Flexport) offers several advantages for online Sellers, making it an attractive option for Shopify businesses looking to enhance their fulfillment capabilities:
- Fast and Reliable Delivery: SFN’s strategically located fulfillment centers enable businesses to offer fast and reliable delivery to their customers. This can significantly boost customer satisfaction and loyalty, as timely deliveries are a key factor in the overall shopping experience.
- Simplified Order Fulfillment Process: SFN handles the entire fulfillment process, from storage to shipping. This allows businesses to focus on other critical aspects of their operations, such as marketing and product development, without worrying about the logistics of order fulfillment. However, there are some fulfillment limitations that come with this simplified fulfillment process.
- Increased Efficiency: By utilizing SFN’s network of fulfillment centers and advanced technology, businesses can streamline their fulfillment process. This not only reduces costs but also improves operational efficiency, allowing for better resource allocation and management.
- Scalability: SFN is designed to scale with businesses as they grow. Whether you’re a small startup or an established enterprise, SFN can accommodate your needs, allowing you to expand your operations without the hassle of managing fulfillment logistics.
Choosing the Right Shopify Order Fulfillment Service for Your Store
It’s one thing to decide to work with a 3PL provider and another thing entirely to find one that has the right Shopify fulfillment network that your business needs to scale. Here are the key factors you’ll have to consider:
- Shipping speed SLAs (what shipping options will they enable?)
- Fulfillment costs and methods (how much do different options cost?)
- Inventory management options (do they help you efficiently manage inventory?)
- What other providers do they integrate with, and how?
- Customization & special services (e.g., assembly, packaging)
The best Shopify fulfillment services are built for fast & free ecommerce – that means they’ll enable fast delivery for your customers, but do so in a low-cost way. They should have pre-built integrations with Shopify and ecommerce platforms to make your life easy. Finally, you should look for a provider that helps you intelligently manage inventory to optimize capital.

For more in-depth guidance on how to choose a 3PL, use our 3PL RFP template to easily collect the information you need to make the right choice.
Cahoot – Your Best Option for Shopify Order Fulfillment
Cahoot’s fulfillment network of over a hundred warehouse locations is built for ecommerce. We’ll help you level the playing field with marketplaces and delight your customers with a stellar, Amazon-like delivery experience – right on your Shopify store.
Price: Our innovative peer-to-peer model offers low-cost, fast fulfillment by design. As a result, our pricing is typically lower than that of traditional 3PLs, 3PL networks, Shopify Fulfillment Network, and even marketplace fulfillment solutions like Amazon Multi-Channel Fulfillment.
Shipping Flexibility: Cahoot also offers the option to ship on your existing carrier accounts, allowing you to maintain your purchasing power and volume discounts.
Speed: Cahoot’s Shopify fulfillment service will enable you to turn on conversion-boosting fast and free shipping badges. We’ll strategically distribute your inventory to our warehouses locations across the country so that no matter where an order comes from, it’ll be fulfilled by a nearby warehouse. The customer gets their item in one to two days, but you pay cheap ground shipping rates.
Reliability: Our barcode scanning technology powers 99.95% on-time delivery and a 99.99% accuracy rate.
Easy Onboarding: With Cahoot, you can go from sign up to shipping in just two weeks. Our pre-built integration with Shopify makes setup a breeze.
Customer Service: You’ll have a dedicated customer support team that is always ready to help you every step of the way.
Cahoot is committed to helping Shopify Sellers grow their businesses with our fast and affordable ecommerce fulfillment service.
If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how Shopify fulfillment was meant to be.
Frequently Asked Questions
How can I fulfill orders on Shopify?
The main ways to fulfill Shopify Orders are directly shipping yourself, dropshipping, or using a 3PL.
Are there any limitations with Shopify Fulfillment Network?
Not all products are eligible for the SFN; you can review the list here.
Are all 3PLs the same?
No! 3PLs are different, and choosing the right 3PL for your business is an important decision.

Up to 64% Lower Returns Processing Cost

Shopify Fulfillment Network to Cut Number of Locations
In this article
Late last week, Business Insider reported that Shopify Fulfillment Network is cutting contracts at several warehouses and fulfillment centers in the US, marking a potential shift in their strategy.
Today, they attempted to clarify the impending cuts by stating, “We will be making changes to the SFN (Shopify Fulfillment Network) to help merchants compete with big-box retailers, such as prioritizing two-day shipping at affordable prices and access to easy returns for U.S. shoppers.”
The company is expected to update sellers and the market on their strategic shift during its earnings call next month, but in the meantime, merchants are confused.
How does scaling down the number of SFN fulfillment locations in the US help merchants using SFN access affordable two-day shipping, as they attest?
Wedbush analyst Ygal Arounian sums up Shopify’s challenge well: “Shopify is nowhere close to building a type of fulfillment operation at the scale of Amazon, and investors should not expect anything like that in the near term”. Investors have taken notice of Shopify’s recent struggles – the stock is down nearly 50% from its November high of 1,690.60.

We’d assert that this change is more important for merchants than investors, as it reveals that Shopify Fulfillment Network isn’t an FBA alternative, and instead is moving in the opposite direction.
Merchants that want to power their sales with affordable, reliable fast shipping will need to look elsewhere for a fulfillment solution.
Shopify Fulfillment Network’s Pros & Cons
Like Amazon FBA, Shopify is building its own logistics solution for eCommerce sellers, Shopify Fulfillment Network.
It combines seamlessly with a merchant’s Shopify account, making it an easy way to start fulfilling eCommerce orders for someone with a new DTC store. It also comes with software that helps merchants with order and inventory management, and it boasts a dedicated customer service team that helps merchants overcome operational challenges.
Unfortunately for merchants with big growth ambitions, it’s focused on fulfilling Shopify orders and not orders from other channels. On top of that, it doesn’t offer fast shipping by default. Merchants that want to win on multiple channels will likely need an additional 3PL for their other orders. More importantly, they won’t be positioned to offer affordable fast shipping to their customers. With Amazon and other national fulfillment services setting the bar at 1- and 2-day free shipping, merchants that rely on SFN will be left at a significant disadvantage.
Cahoot: The Best Shopify 3PL
If you need a fulfillment solution that keeps up with Amazon FBA at always-affordable prices, give us a call.
Unlike Shopify Fulfillment Network, Cahoot’s fulfillment network has no trouble keeping up with FBA. We’ll help you level the playing field with marketplaces and delight your customers with a stellar, Amazon-like delivery experience – right on your Shopify store.
It sounds expensive, but our innovative peer-to-peer model offers low-cost fast fulfillment by design. As a result, our pricing is typically lower than that of other top providers, but we can beat them on fulfillment speed and reliability.
And of course, we don’t stop there. We have pre-built integrations with major marketplaces to fuel your multi-channel growth.
If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how Shopify fulfillment was meant to be.
Offer 1-day and 2-day shipping at ground rates or less.
Related Blog Posts

Peer-to-Peer Networks vs. Traditional 3PL For Order Fulfillment
Sellers seeking a better deal have often turned to Third Party Logistics Providers (3PLs). They do so with the ambition of not just regaining control and autonomy over their logistics, but also boosting their profits.

Peer-to-Peer Order Fulfillment for Efficient and Affordable Shipping
The network collaborates to speed up order fulfillment and distribute inventory closer to the customer. The objective is to reduce shipping costs and improve customer experience with better and faster shipping.

Ecommerce Innovators: Exploring Cahoot, the World’s First Peer-to-Peer Order Fulfillment Network
Cahoot is an ecommerce network where ecommerce brands and retailers can join as order fulfillment partners and monetize their spare warehouse capacity, similar to Airbnb
Shopify B2B: Your Next Growth Opportunity?
On June 21st, Shopify launched a brand-new service: B2B on Shopify. For over 15 years, Shopify has been synonymous with Direct-to-Consumer (DTC) ecommerce. Now, they see their next great growth frontier in the promise of B2B ecommerce.
When you ask the average American about ecommerce, their mind probably jumps first to Amazon Prime and their ability to get anything they want delivered to their front door. Little do they know, business-to-business shopping is already much more digitized than retail shopping!
According to Statista, 14.2% of retail sales happened online in 2021, and they expect that number to rise quickly to 21.9% in 2025. In contrast, Gartner expects that a whopping 80% of B2B sales interactions will happen on digital channels by that same date.
With numbers like those, it’s no surprise that Shopify is looking to muscle into B2B ecommerce.
In this article, we’ll cover the basis of B2B on Shopify, share our thoughts on how it will affect the broader ecommerce industry, and give a few tips on what you can do to take advantage of this new offering.
What is B2B on Shopify?
Per Shopify’s press release, B2B on Shopify is “a new set of features built specifically for B2B merchants, directly into our platform, and with access to all of Shopify’s most powerful customization features like store themes, discounts, and Functions—and it’s all included with Shopify Plus. This will allow you to manage your entire ecommerce business—whether it’s B2B, DTC, or both—all in one place.”
Business-to-business sales are significantly different from direct-to-consumer sales, so it’s only natural that Shopify needs to launch an entirely new service with a full suite of features to enable B2B ecommerce on its platform.
Shopify B2B Company Profiles
First and foremost, different business purchasers require different experiences. Almost all DTC online stores offer their customers the same experience: they see the same homepage, the same products, and the same prices. At most, customization comes down to whether the user can log into a saved profile.
In contrast, B2B purchasers need different experiences from one another. Some businesses will negotiate better prices and terms than others, so of course a seller doesn’t want the businesses paying more to see that others are paying less. Adding to that, businesses may have multiple purchasers that are in charge of procuring different items, so they need the ability to add different people to an account with varying levels of permissions.

Source: Shopify.com
B2B on Shopify will enable its merchants to create company profiles that save all of this differentiation and more. With it, they overcome one of the biggest hurdles involved in moving from DTC to B2B ecommerce.
B2B Price Lists
Building on the above, prices for business-to-business commerce are multiple degrees more complex than prices for direct-to-consumer sales.
B2B on Shopify will enable merchants to create variable price lists for all of their products and product variants, and it will also enable easy currency modifications. In this way, sellers will be able to manage complex international B2B ecommerce smoothly.
B2B Payment Terms
Business-to-business transactions are resolved with up-front payments much less frequently than DTC transactions, so a feature for payment terms is absolutely essential. In addition to assigning different payment terms to different merchants, B2B on Shopify also will help its users track, sort, and collect on payments as they become due.
On the other side of the transaction, businesses will be able to see their payment terms, check out with their approved terms, and keep track of upcoming payments within their company profile.
Shopify will also provide a personal checkout experience for business purchasers pre-loaded with assigned payment terms, payment methods, and wholesale discounts. The B2B Checkout feature thus will seek to help streamline conversion and keep customers happily ordering
Why is Shopify Targeting B2B Ecommerce?
In their announcement, Shopify exhorts its users, “With an expected global market value of $7.7 trillion, now is the time to expand into wholesale.” Their logic for why their users should wholesale also succinctly explains why they’re launching B2B on Shopify: there’s a ton of money to be won!
Ecommerce merchants are used to hearing the advice that they should sell to consumers on multiple channels, and many now are pursuing multi-channel growth strategies across their DTC sites and online marketplaces. Shopify is betting that the next big growth frontier won’t be DTC at all; instead, ecommerce DTC brands are going to start trying to win shelf space in physical retail.
Shopify may be feeling the need to take some big swings as the walls of DTC ecommerce seem to be tightening.

Source: Google.com
After a meteoric rise from $138 per share at the start of 2019 to $1,690 near the end of 2021, Shopify’s share price has crashed back to earth. Once tagged as the upstarts that would wrest control of ecommerce away from Amazon, they simply aren’t seeing the GMV growth that you’d expect from a giant slayer.
Moreover, Amazon is now the prime mover in the Shopify vs Amazon battle. Their new purchasing and fulfillment service, Amazon Buy with Prime, is a scary shot across Shopify’s bow. In short, Buy with Prime will allow DTC ecommerce brands to install the Prime buying and delivery process on their own website, thus offering fast and free shipping to their customers. If Shopify doesn’t allow its merchants to integrate with Buy with Prime, they’ll be at a disadvantage to all those that can use the service. If Shopify does allow the service, though, they’ll give up control of payments to Amazon. This would be devastating, as they rely on growth from merchant services like their payments solutions to drive their bottom line.
So, with DTC ecommerce only becoming more competitive, more saturated, and more difficult to win, Shopify is betting that by opening a new front with B2B ecommerce, they’ll go where others can’t and quickly grab market share.
How Can B2C Sellers Add B2B?
Shopify exhorts its users to add B2B to their growth strategy – if only it were that simple! Business-to-business sales are a completely different ballgame from direct-to-consumer. We won’t be able to teach you how to add a fundamentally different sales channel in the space of a few paragraphs, but we can at least share the basics.
First, what’s similar: you’ve learned to tell your brand’s story to win consumers, and you’ll need to do the same with business purchasers. Everyone loves a good story and a compelling brand, and it will help you stick in the mind of prospects. Moreover, a great story will help the retailer sell your product once it’s on shelves, so they need to know that your product will sell.
Next, start local. Consumers like to buy local, so retailers like to stock local products. Go door to door with samples, and talk to your local small business owners! You can connect with them as a fellow small business owner, and if your product is good, they’ll be able to find a place for it as the next best thing to come out of your town.

Once you’ve got your foot in the door and a little track record of success in business-to-business wholesaling, you can think bigger. Trade shows are a fantastic place to meet tons of retailers at once (including big regional and national ones) and to get your product into as many hands as possible. This is just the start of your sales journey, though, and where things really start to diverge from DTC ecommerce.
You’ll have to learn to love the long sales cycle: wholesale deals don’t happen overnight (or even over a month, or a year!). Retailers rarely have shelf space just lying around, waiting for someone to fill – so you have to develop relationships with them and either convince them to knock off a different product, or be ready to snap up an opening. We won’t try to teach you business-to-business sales here, but suffice to say that you’ll need to learn about how to build long-term relationships with potential buyers and to speak to their needs.
Finally, you need the right tools! This is where not only B2B on Shopify comes in, but also a whole host of other tools that make B2B hum. For instance, you’ll likely need a Customer Relationship Management (CRM) tool to manage long sales cycles with retailers. And you’ll need a fundamentally different Shopify fulfillment strategy that sends infrequent, large shipments to repeat customers instead of small orders all over.
Shopify B2B Fulfillment: Cahoot
Whether you’re just thinking about starting up B2B sales, or you’re an old pro who’s going to take advantage of Shopify’s new platform, you need a Shopify 3PL like Cahoot that has the flexibility to optimize for both DTC ecommerce and B2B replenishment.
Cahoot has created a robust ecommerce order fulfillment network that makes low cost, fast and free shipping a breeze for every eCommerce sales channel. We have built a dense network of dozens of locations that specialize in different aspects of fulfillment, so we provide affordable fast DTC shipping as easily as we can optimize low-cost, efficient replenishment for B2B.
Instead of having to contract with different 3PLs for your DTC and B2B orders, you can consolidate your inventory and your operations with us. You’ll enjoy economies of scale from being able to run leaner on inventory, and you’ll save employee time and headaches from not having to manage multiple providers. You can read or watch our case studies to see just how powerful consolidated operations for multi-channel ecommerce sales can be for your growth.
Contact Cahoot today to learn how we can design a custom fulfillment solution to power your profitable online growth, no matter the channel.
Offer 1-day and 2-day shipping at ground rates or less.
Related Blog Posts

Packaging Design That Will Make Fulfillment Easy and Cut Costs
E-commerce Revolution with Strategic Packaging Solutions Like anyone in the e-commerce world, small business owners are always looking for ways to streamline their operations

USPS Hazmat Shipping Guidelines – How to Ship Fast While Staying Compliant
Hazardous Materials What is a Hazardous Material? What Items Are HAZMAT? Classes of HAZMAT Items What Classes Can Ship on Various USPS Services?

Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts
Amazon is a competitive platform. You need to have a quality product, excellent listing content, and plenty of reviews to catch the attention of busy consumers

Up to 64% Lower Returns Processing Cost

Choosing the Best Shopify 3PL for Your Store | Cahoot
In this article
14 minutes
We hear it all the time – you start out on your own with a Shopify store, fulfilling orders from your garage. Your ecommerce website catches on, and soon, what started as a side hustle has turned into a full-time boxing, label-printing, and shipping operation. The success is great, but your back isn’t happy with all the box-lifting.
It’s time to outsource your Shopify Order fulfillment to a third-party logistics (3PL) company that can solve your operational headaches and let you get back to what you do best – creating and selling amazing products. There are so many 3PLs and warehouses out there. How do you choose one that’s right for your ecommerce business?
In this post, we’ll dive into what makes the best Shopify 3PL and evaluate a few of the leading order fulfillment options in the industry today.
Introduction
What is Third-Party Logistics (3PL)?
Third-party logistics (3PL) refers to the outsourcing of logistics and supply chain management to external service providers. These providers specialize in managing various aspects of the supply chain, including inventory management, order fulfillment, warehousing, and shipping. By partnering with a 3PL company, Shopify store owners can focus on core business activities while ensuring efficient and timely order delivery.
Benefits of Using a 3PL for Shopify
Using a 3PL company can bring numerous benefits to Shopify store owners, including:
- Improved customer satisfaction: By outsourcing logistics operations, businesses can ensure timely and accurate order delivery, leading to increased customer satisfaction.
- Reduced shipping costs: 3PL companies can negotiate better shipping rates with carriers, resulting in cost savings for businesses.
- Increased efficiency: 3PL companies can streamline logistics operations, reducing the time and resources required to manage inventory, fulfill orders, and handle shipping.
- Scalability: 3PL companies can help businesses scale quickly and efficiently without the need for significant investments in infrastructure and personnel.
Types of 3PL Companies
There are several types of 3PL companies, including:
- Full-service providers: These companies offer end-to-end solutions, managing all aspects of the supply chain, from freight forwarding to bulk inventory storage and management to shipping and reverse logistics.
- 3PL warehouses: These companies specialize in storing, shipping, and handling returns for businesses.
- Transportation-based 3PLs: These companies focus on transporting goods between locations, often using their own fleet of vehicles.
- Financial- and information-based 3PLs: These companies provide financial and information services, such as sales analyses and supply chain analytics.
What Makes a Good 3PL for Shopify Sellers?
If you’re an ambitious ecommerce Seller looking to boost your growth, you should know that the right Shopify 3PL can be a revenue driver and not just a cost center. The best 3PLs will improve your delivery experience, delight customers, and open new avenues for growth. Here are the most important things to look for in a 3PL for your Shopify store:
1. Nationwide USA Warehouses
Don’t sell yourself short. Even if you’re small now, you can still distribute your inventory across the country to unlock affordable, fast, and free shipping without huge expense. That is…if your Shopify 3PL has a nationwide network of warehouses.
You’ll want to make sure your Shopify 3PL has at least 4 order fulfillment centers across the USA. Still, ideally, the best 3PL will have many more warehouses so they can fine-tune exactly where your product inventory is placed to be near your largest customer base.
The best 3PLs offer true national order fulfillment services by strategically placing inventory in 4+ locations across the country. The benefit to you is that these networks cover 99%+ of US consumers with 2-day shipping at economy shipping rates. No matter where your customer wants their product shipped, you’ll have inventory nearby. They will get their products quickly, and you’ll pay the cheapest shipping rates possible.
If you aren’t already offering free 2-day shipping, it’s a recommended upgrade that can truly turbocharge your ecommerce growth. Today, 90% of US online shoppers expect free one-day and two-day shipping. Amazon metrics show that turning on the Amazon Prime badge can net up to 50% growth for a product!
Adding a banner or top bar to your Shopify store that says “Fast and free shipping” can boost your ecommerce conversions and revenue.

Source: Shopify App Store Free Shipping Bar
2. User-Friendly Shipping Software
As a business owner, giving up control and outsourcing to other companies is tough. The best Shopify 3PLs know that, so they provide their customers with easy-to-use shipping software that provides proactive notifications and robust reporting on how they’re doing. If you can’t get real-time updates on your orders’ status, inventory levels, and shipping and order fulfillment costs, then you’re not working with a cutting-edge 3PL.
One key benefit of great 3PL shipping software is proactive notifications. Unfortunately, things go wrong all the time in the shipping logistics world. It can be as simple as an undeliverable address incorrectly input by the customer or as complex as a worldwide supply chain and shipping crisis. The best Shopify 3PLs don’t leave it up to you to identify order fulfillment problems. Their shipping software should alert you when a customer orders with an undeliverable address. You can immediately fix the issue before it turns into a late shipment, and you’ll keep the customer happy.
“I use Cahoot to process our shipping labels. Their auto label creation feature is a huge time saver. We are continuing to use Cahoot over our previous shipping label provider.”
~ Home and Garden Supply
Speak to a fulfillment expert
3. Achieve a 99% On-Time Order Fulfillment Rate
Reviews are the lifeblood of your ecommerce business, and a happy customer is a repeat customer. You can probably recall more than a few lost customers and poor reviews that were due to errors in the order fulfillment or shipping workflow that were not your fault.
The best Shopify 3PLs minimize these issues and have an on-time fulfillment rate of 99.9% or higher. Anything less signals a Shopify 3PL that isn’t built for the rigorous demands of modern ecommerce.
Top 3PLs designed for ecommerce order fulfillment also integrate technology like barcode scanning into their warehouses to eliminate errors. Simple but effective innovations like these stop issues before they happen, and they also fuel the functionality of the software mentioned above.
4. Multi-Carrier Shipping Discounts and Carrier Flexibility
Shipping fees consume a significant chunk of every ecommerce merchant’s profits, but where there’s extra cost, there’s an opportunity to save. The best 3PLs who ship huge volumes of packages every year will negotiate preferred rates with major and regional parcel carriers, and they should pass those savings on to you.

Beware though. A trick in the 3PL industry is to consolidate pricing into a single one-line item and not itemize what you’re paying for every component of their service. While it can feel helpful to be quoted one simple price, keep in mind this enables the 3PL to charge you more for shipping than what they’re paying the carrier and keep the difference without you knowing.
The best Shopify 3PLs work with all shipping carriers, not just one. The reason why is simple. Different carriers have the best rates for different routes, package sizes, and types of products. If you’re locked into just one carrier, you’re not getting the best shipping prices.
5. Pre-built Ecommerce Integrations and Open APIs
It shouldn’t be hard to connect your Shopify store to your 3PL. The best 3PLs have pre-built integrations that will do it in a few clicks (this goes for other ecommerce platforms, too). Many merchants are scaling into multiple sales channels to maximize growth, and your 3PL should be able to integrate easily with all of them.
Not every ecommerce merchant can work with pre-built integrations, especially larger ecommerce merchants with custom and complex order and inventory management systems. For that, your Shopify 3PL choice should have an open API and support resources that make the order fulfillment integration process as seamless as possible.
6. Responsive Customer Service
Finally, the best Shopify 3PLs offer amazing customer support. You should be able to get in touch with your 3PL easily to troubleshoot challenges. Look for a Shopify 3PL that assigns a real person to work with your ecommerce account. Make sure there are multiple ways to get in touch with them. If it’s a small issue, live chat works. Complex challenges should be handled by an advanced ticketing system. And finally, request direct phone support for critical or time-sensitive order fulfillment issues.
“We switched to Cahoot from a different 3PL and the team has bent over backwards to make the transition easy and seamless. Great personal assistance every day from the team and very quick, reliable shipping from the Cahoot partner warehouse. Highly recommend their service.”
~ Cut.com
Speak to a fulfillment expert
Top Shopify 3PL Companies
Now that you know what to look for, how do a few of the top players in the 3PL industry stack up? We’ve provided a primer to help jump-start your order fulfillment research.
Amazon Multi-Channel Fulfillment
Amazon Multi-Channel Fulfillment (MCF) is Amazon’s outsourced fulfillment service for merchants selling on non-Amazon sales channels whereby Amazon handles the picking, packing, and shipping of the orders coming from those sales channels. Ecommerce Sellers can store their inventory at Amazon’s warehouses, and MCF will fulfill the non-Amazon orders from select channels.
Shopify Fulfillment Network (Flexport)
Shopify Fulfillment Network (sold to and rebranded as Flexport in mid-2023 but still operating the Shopify Fulfillment Network app) is geared towards Shopify sellers. The pricing and shipping speed aren’t expected to be comparable to FBA as Shopify does not own any logistics infrastructure. This fulfillment option will work for you if you only need to fulfill orders in the United States, have fewer than 2,000 SKUs, ship more than 10 orders but less than 10,000 orders per day, and don’t sell any prohibited or regulated products.
ShipBob
ShipBob is a 3PL that focuses on serving ecommerce merchants. They have a nationwide network of order fulfillment centers that enable fast shipping, but they charge extra for guaranteed 2-day shipping. Built for ecommerce, they have an easy-to-use shipping software platform and a large set of pre-built integrations.
Red Stag Fulfillment
Red Stag Fulfillment is a more traditional 3PL with only two locations in the United States. They offer B2B fulfillment in addition to B2C since they have a wider focus than just ecommerce.
Cahoot: Shopify’s Premier Fulfillment Network
Cahoot’s order fulfillment services network is built for ecommerce. We’ll help you level the playing field and delight your customers with a stellar, Amazon Prime-like delivery experience for your Shopify store. And we don’t stop there. We have pre-built ecommerce integrations with major marketplaces to fuel your multi-channel growth. Don’t see one that you need? Let’s talk.
Our innovative peer-to-peer model offers low-cost, fast, nationwide order fulfillment by design. As a result, our pricing is typically 30% lower than the 3PL providers listed above, and we can beat them on order fulfillment speed and delivery reliability.
|
![]() |
Traditional 3PL |
---|---|---|
Same-day fulfillment until 2pm |
|
|
Nationwide 1-day & 2-day coverage |
|
|
Weekend fulfillment |
|
|
Powerful, easy-to-use software |
|
|
Flexible fulfillment |
|
|
Real-time fulfillment & shipping visibility |
|
|
All sales channels |
|
|
Seller Fulfilled Prime (SPF) |
|
|
Fast-shipping badges – Walmart, Amazon |
|
|
30% avg. lower cost |
|
|
Cahoot is committed to helping Shopify Sellers grow their businesses with fast and affordable ecommerce order fulfillment service.
When is the best time to work with a 3PL?
The best time to work with a 3PL depends on your business’s specific needs and growth stage. It might be time to consider outsourcing fulfillment when you’re starting to run out of capacity. For example, if order volume consistently exceeds what you can handle efficiently in-house, or if your available storage space reaches or exceeds 75-90% of your capacity. Businesses that experience seasonal spikes in demand can benefit from a 3PL’s ability to seamlessly scale operations up or down as needed.
When logistics management becomes too time-consuming, or rising shipping costs are creating excessive margin pressure, outsourcing fulfillment allows you to focus on growing your business and improving your products while leveraging a 3PL’s carrier network and negotiated rates.
If you’re struggling to meet your on-time delivery promises or you’re dealing with frequent fulfillment errors and the customer service burden has gotten to be too much, it would be worth looking into a 3PL’s expertise and infrastructure; in particular, look into 3PLs that can support nationwide inventory distribution to reduce shipping times and costs.
Merchants looking to get smarter and more efficient with inventory forecasting so they can procure the right amount of inventory at the right time should partner with 3PLs that offer AI-driven intelligent demand planning software. Agentic AI is able to analyze fluctuations in market demand, freight forwarding trends, trade and policy current events, etc., and automatically create purchase orders with your suppliers (in their language), optimizing the amount of capital tied up in inventory.
If you’d like to find out how Cahoot can enhance your efficiency, reduce your costs, and support the growth of your ecommerce business, please get in touch with us. We can’t wait to show you how Shopify order fulfillment was meant to be.

If you are selling on multiple sales channels and are interested in a 3PL that can help you with fulfillment, check out some of our other articles:
- How to Choose the Best 3PL for Wayfair
- How to Choose the Best 3PL for Your Macy’s Orders
- How to Choose the Best 3PL for Target Plus
- How to Choose the Best 3PL for the Nordstrom Direct Drop Ship Program
Frequently Asked Questions
Can Amazon fulfill Shopify orders?
Yes, Amazon can fulfill Shopify orders using the Multi-Channel Fulfillment (MCF) service. MCF integrates a Shopify website with Amazon’s fulfillment network to pick, pack, and ship orders using the Fulfilled by Amazon (FBA) infrastructure and resources.
Does Shopify offer fulfillment?
Yes, Shopify owned and operated the Shopify Fulfillment Network (SFN, formerly known as Deliverr), before it was sold to Flexport in mid-2023. Shopify promotes Flexport as its trusted fulfillment partner.
How much does Shopify fulfillment cost?
Enter your product information into the Flexport Cost Calculator to see what you would pay with Flexport Fulfillment.
What does order fulfilled mean on Shopify?
When you fulfill an order in Shopify, you begin the process of sending the order on its way to the customer. The customer receives an email telling them that their item has shipped, and the order’s Fulfillment Status displays as Fulfilled on the Orders page.
What is fulfillment on Shopify?
Shopify Fulfillment Network connects your online store with Flexport, a leading logistics partner that will pack, pick, and ship online orders to your customers without any intervention.

Up to 64% Lower Returns Processing Cost
