Dive Brief:
- Shopify recently announced it partnered with DHL Express to enable merchants of all size to access the same global shipping options as those offered to large retailers, with guaranteed express service and enterprise-grade rates.
- International and Express options are included in the shipping option, with rate calculations built in to ensure accuracy both locally and overseas. DHL currently delivers to 220 countries around the globe.
- The DHL Express shipping options are embedded within the Shopify Shipping system, allowing merchants to view rates, create labels and schedule pickups within the software.
Dive Insight:
The deal is a coup for both Shopify and DHL as retail providers battle to gain market share by servicing a growing class of small retail merchants.
Global 3PLs like FedEx and CMA CGM — as well as marketplaces like Amazon and Alibaba — have recently launched initiatives to benefit small and medium enterprises. After all, as Shopify points out, the global retail market is five times the size of the U.S. market, and much of that is serviced by individual merchants.
Yet, small vendors often face higher costs due to a limited volume. As a result of that need, vendors in the know work hard to determine ways to underwrite shipping savings, often setting a minimum order price to ensure they recoup costs. Consumers, meanwhile, continue to demand free and fast shipping from all vendors.
That's why the partnership marks a competitive leap for smaller merchants. "This partnership with DHL Express lets small businesses ship like enterprise companies: with fast, premium delivery, lower rates and a global brand consumers trust and choose at checkout,” Maia Benson, global head of shipping at Shopify told Supply Chain Dive.
The deal with DHL also bestows the power to expand internationally, which could make a real difference for a smaller seller. “With Shopify’s massive scale, we’re able to work with global shipping powerhouses to offer this premium solution to the small business owner,” Benson added. With peak season just ahead, the results will be interesting to tally.
