A startup is making it easier for Amazon's sellers to fulfill orders, and it's a hint at how one-day shipping could become a reality
- Deliverr, a third-party service that helps merchants fulfill and sell goods across retail marketplace websites, has just added Amazon to its offerings, alongside Walmart, Ebay, and Shopify.
- It's the final piece in the puzzle for the company, which operates an Amazon-like network of leased warehouse space.
- The partnership comes at the same time as Amazon is pouring resources into its logistics and fulfillment systems, as it evolves its Prime offering from a standard two-day offering to one-day.
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Deliverr, which runs a third-party service that helps merchants fulfill orders and sell items across retail websites, has just added Amazon to its offerings.
Deliverr uses a network of leased space in warehouses across the country to allow other marketplaces, including Walmart, Shopify, and Ebay, to mimic the services of Amazon. Deliverr takes a set fee off the top and handles both storage and fulfillment, just like Fulfillment by Amazon does for Amazon sellers.
And now Deliverr can also do that for Amazon sellers.
"I think it's a huge, huge milestone for us," Deliverr cofounder Michael Krakaris said.
Merchants will be able to store goods in Deliverr's warehouses and sell them on any of the marketplace websites it partners with, including Walmart, Ebay, Shopify, and, now, Amazon.
Deliverr previously added two-day shipping integration with Walmart earlier this year, and it has since experienced a surge of growth. The company pegs its growth rate at over 1,000% over the last six months, and the nearly two-year-old company has launched Toronto and Chicago offices in addition to its headquarters in San Francisco.
"We'll just continue scaling to add more and more merchants and see where this goes," Krakaris said.
The partnership with Amazon uses the e-commerce company's seller-fulfilled Prime program, in which Amazon certifies certain third-party warehouses and networks to allow goods to be listed as Prime-eligible. A representative for Amazon did not immediately return Business Insider's request for comment on this story.
It also comes at an important time for both companies, as Amazon has recently announced its initiative to evolve its standard two-day shipping Prime guarantee to be a one-day shipping guarantee.
Deliverr's new Amazon-friendly service "does tie very nicely into that program," according to Krakaris.
"We could get to one-day shipping pretty quickly, depending on how fast Amazon moves on their Prime initiative. As times get faster and faster, it's going to be harder and harder for merchants to self-fulfill Prime orders. And we're going to really help a need there."
Though many are interpreting Amazon's switch from two-day to one-day shipping as "binary," Krakaris said that's not the case.
Amazon says it has more than 100 million items available for Prime two-day shipping. In order to fulfill its promise of replacing two-day shipping with one-day, it needs to make that same number of items available for one-day, a process that will take months, if not years.
"The real question is not, 'when will Prime support one day shipping?' Because that answer is: they've been doing it for a few years now," Krakaris said. "The bigger question is, what percentage of that Prime inventory is: 'On what service level? Across what geography? And how is that going to change over time?'"
That's where Deliverr can come in. Once Amazon enables third-party partners to help it deliver in one day, the Deliverr's nationwide network of warehouses could help add new items from third-party sellers to the one-day category, helping Amazon in its Prime evolution.