June marks an exciting milestone for the Omnichannel and Fulfillment business – it is our one-year anniversary of the Shopify Logistics/Deliverr acquisition, and marks one year of Flexport taking a strategic step forward in achieving our vision of being the best end-to-end logistics solution for businesses of all sizes.

As I reflect on this past year, I am overcome with a deep sense of gratitude and pride for all our team has built, transformed, and accomplished for our customers in such a short period of time. Integrating two robust businesses and navigating through complexity and ambiguity is no easy feat. On June 6, we closed on the acquisition, and a mere 90 days later we launched the first-ever supply chain product that married international freight services, domestic omnichannel and ecommerce fulfillment, and trade and financial services. This enabled the legacy Deliverr Seller Portal to rapidly evolve into the first technology platform to connect a customer’s supply chain from factory floor to customer door – now known as Flexport’s Omnichannel Seller Portal. Even more impressive, we built a consumer-grade product that lowers the barriers for merchants of all sizes to not only manage their end-to-end logistics in one place, but make omnichannel growth achievable for everyone.

While our technology sets Flexport apart, we knew from the beginning that our underlying operations, customer service, and execution had to be world-class. We acquired a fragmented network of more than 50 warehouse locations operated by a myriad of third parties. This model was a drain on our profitability, and prevented us from consistently driving the quality our customers expect. We designed a new operating model and invested in consolidating our network to five strategically placed hubs that Flexport will own and operate. This allowed us to rapidly improve our unit economics, but equally important, take the reins on performance – improving our speed, efficiency, and quality. Since this change, we have improved our Dock-to-Stock speed, making customer inventory available twice as fast. Our On-Time-Shipping is 99%, and our On-Time-Delivery is 97%+, surpassing industry benchmarks. Our Customer Service CSAT is 91%, which is a 2% increase since acquisition, and higher than the industry average. With this consolidated network, our five hubs now represent more cumulative square footage than we had before, allowing us to co-locate multiple fulfillment activities under one roof for faster processing and scale 5X during the peak season, all while maintaining (and in some cases increasing) the speed of delivery across our network. To get a look behind the curtain, watch CEO & Founder Ryan Petersen’s behind the scenes tour of our newly opened New Jersey fulfillment hub linked below.

Similar to the rest of Flexport, we have made great strides to grow our business and focus on delivering an unparalleled customer experience. Since we launched the Flexport Omnichannel Seller Portal in September, we have received substantial interest from merchants leading to more than 25,000 sign-ups to the Seller Portal. We want to thank the thousands of active merchants that have entrusted us with their goods, who booked tens of thousands of shipments, and moved tens of millions of units through Flexport’s network this past year. We are proud to partner with you, and help scale your business together.

To help our customers grow, we continue to expand our partnerships. Flexport now integrates with more than 30+ eCommerce platforms and B2B retailers including Shopify, Amazon, Walmart, and our newest addition SHEIN Marketplace. We also partner with a diverse set of national and regional carriers to offer nationwide shipping with fast, reliable delivery speeds. Our goal is to give customers more flexibility and optionality in how they sell and ship their products.

As part of our growth strategy, we continue to see tremendous opportunities to integrate fulfillment and freight services. End-to-end customers like Kizik and Moerie have vocalized the benefits of streamlining to one single logistics vendor. It is a win-win for both customers and Flexport to reduce complexity, minimize costs, improve quality, and ultimately grow alongside our customer’s business.

We have only scratched the surface of what is possible. Flexport is here for our customers for the long haul – to make it easy to ship anywhere, sell everywhere, and grow faster.

Watch Ryan Petersen’s Behind the Scenes Tour
Take a look behind the curtain as Ryan gives an exclusive tour of our newly opened New Jersey fulfilllment hub. Ryan shares an overview of Flexport’s Fulfillment Network, and walks through the lifecycle of a product from inbound to outbound. Learn more about our omnichannel and fulfillment services including eCommerce fulfillment, B2B fulfillment, Reserve Storage, Prep, Replenishment, and Returns.