How We Enable Two-Day Delivery in the Shopify Fulfillment Network

A simplified overview of how we built two-day delivery in the Shopify Fulfillment Network (SFN).

Linda Damus
7 min readintermediate
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Overview

The article discusses how Shopify Fulfillment Network (SFN) enables two-day delivery across the United States by optimizing inventory placement and utilizing a network of Shopify-certified warehouses. It details the multi-team initiative that integrates delivery date calculations into the Shopify platform through GraphQL APIs, considering various factors that influence delivery times.

What You'll Learn

1

How to optimize inventory placement for faster delivery times

2

Why understanding shipping carrier limitations is crucial for logistics

3

How to leverage GraphQL APIs for integrating delivery date calculations

Prerequisites & Requirements

  • Understanding of logistics and fulfillment processes
  • Familiarity with GraphQL APIs(optional)

Key Questions Answered

What factors determine the delivery date in the Shopify Fulfillment Network?
The delivery date is influenced by proximity to the destination, the nature of the goods (heavy, bulky, or dangerous), time spent at fulfillment centers, and time spent with shipping carriers. Each of these factors plays a crucial role in accurately predicting when a package will arrive.
How does Shopify calculate and display delivery dates to buyers?
Shopify uses a system where third-party logistics (3PL) providers upload pre-computed delivery dates via GraphQL APIs. These dates are then displayed to buyers on product pages and during checkout, ensuring accurate and timely information.
What role do shipping carriers play in the delivery process?
Shipping carriers like UPS and USPS are responsible for transporting packages from fulfillment centers to their destinations. Their operational schedules, including holidays and capacity limits, directly affect the delivery timelines that Shopify calculates.
How does Shopify ensure sustainable two-day delivery?
Shopify optimizes the selection of fulfillment centers and carrier services based on various factors to ensure that every merchant SKU can be delivered within two days to any US zip code, while also considering sustainability in their logistics processes.

Technologies & Tools

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Key Actionable Insights

1
Merchants should evaluate their inventory distribution across fulfillment centers to enhance delivery speed.
By strategically placing inventory closer to customers, merchants can significantly reduce shipping times and costs, ultimately improving customer satisfaction.
2
Understanding the limitations of shipping carriers can help in selecting the right logistics partners.
Knowing which carriers can handle specific types of goods ensures that delivery dates are accurate and that compliance with regulations is maintained.
3
Utilizing GraphQL APIs can streamline the integration of logistics data into e-commerce platforms.
By leveraging these APIs, developers can enhance the functionality of their applications, allowing for real-time updates and improved user experiences.

Common Pitfalls

1
Failing to account for the specific requirements of heavy or dangerous goods can lead to inaccurate delivery estimates.
This oversight can result in delays and customer dissatisfaction, as certain carriers may not be able to transport these items, affecting overall logistics planning.

Related Concepts

Logistics Optimization
Third-party Logistics (3pl)
E-commerce Fulfillment Strategies