Shopify plans to expand Shop Promise to all US sellers to compete with Amazon

Shopify will expand its Shop Promise program to all eligible U.S. merchants in the coming months, Shopify President Harley Finkelstein said in a Wednesday earnings call .

Shop Promise will provide shoppers with reliable and accurate delivery dates, which has helped merchants participating in the program increase conversion rates by 25%. Shopify launched the badge for consumers in 2022, and it was previously only available to people who used the e-commerce platform's fulfillment network.

“Merchants have repeatedly told us that providing greater visibility and confidence in delivery dates can help increase their store conversion rates,” Finkelstein said of the company’s reasons for launching Shop Promise.

Shopify sees Shop Promise as part of its effort to simplify logistics for merchants across the supply chain, with moves further upstream helping them maximize the benefits of the program.

To help move products from manufacturers to U.S. ports, a Flexport app focused on ocean freight was launched on Shopify’s app store last week. The app, part of Flexport’s strategic partnership with Shopify, allows merchants to visualize their in-transit inventory at the SKU level and select the most appropriate ocean freight shipping option.

“Small and medium-sized businesses have long been underserved by global logistics providers,” Parisa Sadrzadeh, senior vice president of SMB products and technology at Flexport, said in a statement. “We are excited to deepen our partnership with Shopify to enable SMBs to access the logistics infrastructure, expertise, and technology typically reserved for enterprises with more experience and resources.”

When it comes to distribution centers and fulfillment centers, Shopify acquired 6 River Systems in 2019 and Deliverr in 2022. Finkelstein said last year that 6 River Systems' technology combined with Deliverr's software helps Shopify locate merchants' inventory in advance for timely fulfillment.

According to the investor presentation, Shopify envisions that merchants will be able to "quickly and reliably fulfill and deliver orders" from warehouses while providing accurate delivery dates through Shop Promise.

To determine whether a merchant is eligible for Shop Promise, Shopify looks at “which brands consistently and reliably ship,” Finkelstein said. According to the company’s website , eligibility requirements include:

• Fulfill orders from at least one U.S. location;

• Install the Shop channel and activate Shop Pay;

• Maintain a shipment volume of at least 25 orders within 28 days;

• Ensure that 25% or more of orders are delivered in 5 calendar days or less;

• Deliver 90% of Shop Promise orders within communicated delivery expectations;

• Offering shipping rates of $20 or less on 90% of orders shipped within the United States.

Companies that qualified and still qualify can take advantage of the Shop Promise badge, which indicates that products have been verified to be delivered in five calendar days or less. However, Rick Watson, founder and CEO of RMW Commerce Consulting, said this is one reason Shop Promise won't become a competitor to Amazon Prime and its "Buy with Prime" offering anytime soon. Buy with Prime allows Prime members to shop on external websites, and Amazon handles those orders through its own fulfillment network. Earlier this year, the program was expanded to all U.S. merchants.

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