Everything to Know About Shopify Fulfillment in 2024

Shopify Fulfillment Network (SNF) started in 2019, is a fulfillment service designated to streamline order processing and delivery for Shopify merchants.

Shopify is a leading ecommerce platform founded in 2006. It empowers businesses of all sizes to create online stores, manage products, process payments, and track sales. 

Shopify’s user-friendly interface and robust features make it a popular choice for entrepreneurs and established businesses alike. 

As Shopify’s customer base grew and their businesses matured, the demand for efficient fulfillment solutions became increasingly evident. 

shopify fulfillment 2024

What is Shopify Fulfillment Network?

Shopify Fulfillment Network (SFN) is an integrated service offered by Shopify that allows businesses to outsource their inventory storage and order fulfillment. 

This eliminates the need for merchants to manage their own warehouses and shipping processes. 

Instead, Shopify partners with a logistics provider to leverage their network of fulfillment centers strategically located across the United States. 

Main Fulfillment Options for Shopify

There are three primary methods for fulfilling orders on Shopify: 

In-House Fulfillment

This involves storing and shipping inventory yourself. 

This option can be suitable for businesses with a limited product range or low order volume. However, as your business grows, in-house fulfillment can become time-consuming, expensive, and require significant investment in storage space and packaging materials. 

3rd Fulfillment (3PL)

This involves partnering with a third-party logistics provider (3PL) independent of Shopify. 

Many 3PL companies offer a wider range of services compared to SFN, such as international fulfillment or custom packaging. 

However, you’ll need to integrate the 3PL’s system with your Shopify store, which can add complexity. 

Pros and Cons of Shopify Fulfillment Network

There are various pros and cons of Shopify Fulfillment Network: 

Pros 

  • Convenience: Seamless integration with your Shopify store. 
  • Scalability: Easily accommodate growth in order volume. 
  • Fast Delivery: Leverage strategically located warehouses for faster deliveries. 
  • Competitive Rates: Transparent and affordable pricing structure. 
  • Reduced Costs: Eliminate overhead associated with in-house fulfillment.

Cons

  • Limited Control: Less control over the fulfillment process compared to in-house fulfillment. 
  • US-Centric: Currently only available for businesses based in the United States. (as of July 14th, 2023, SFN no longer operates in Canada)
  • Limited Services: May not offer all the fulfillment services you require, such as international shipping or custom packaging. 

What is 3PL for Shopify?

3PL (Third-Party Logistics) or 3rd Party Fulfillment refers to outsourcing your fulfillment operations to a specialized logistics company. 

Shopify offers integration with various 3PL providers, such as Forceget, each with its own strengths and service offerings. . 

Amazon vs Shopify Fulfillment

While both Shopify order Fulfillment and Fulfillment by Amazon (FBA) offer fulfillment services, there are key differences to consider: 

Shopify vs Amazon is designed to integrate seamlessly with your Shopify store. FBA is optimized for Amazon Marketplace sellers. 

FBA has stricter product restrictions compared to SFN. Both offer competitive pricing, but the cost structure can vary depending on product size, weight, and order volume. 

Selling on Shopify vs Amazon is ideal for selling on your own Shopify store and other marketplaces. FBA is primarily for selling on Amazon Marketplace.