Deliverr Inc. raised $23 million in a Series B round of funding, bringing its total funding to $30 million. The ecommerce fulfillment technology company plans to use the funds to hire staff and build out its warehouse network as it scales a two-day shipping program for marketplace sellers that sell on eBay, Walmart and Amazon, as well as for Shopify merchants.
The new funding round was led by global investment manager GLP, which specializes in logistics and related technologies.
Deliverr, which calls its service “Prime-like” and “Fulfillment By Amazon-like,” operates a network of 16 U.S. warehouses. Its logistics technology enables it to distribute sellers’ inventory across multiple locations, which means at least 95% of U.S. shoppers will see sellers’ items with a fast shipping badge on the product list and product detail page, Deliverr says.
Deliverr surveyed 500 multichannel ecommerce sellers in May 2019 and asked how many sellers fulfill orders via its program. 54% of Shopify merchants fulfill orders through Deliverr, while 51% of Walmart marketplace sellers, 45% of eBay sellers and only 18% of Amazon marketplace sellers use its fulfillment program. The latter preferred self-fulfilling orders (64%) and using Fulfillment By Amazon (54%).
“We noticed that for [Shopify] merchants’ own websites, there wasn’t an easy solution to fulfill orders like on popular marketplaces,” Deliverr writes in a blog post announcing the news. “To solve this, we decided to begin by building a two-day delivery program for one of the most commonly used ecommerce platforms: Shopify.”
The fulfillment company thus launched a new program to provide Shopify merchants with two-day delivery for orders they ship.
Deliverr offers sellers a “2-Day Delivery” badge to display on their ecommerce sites. “Our badging has been rigorously tested and optimized to drive more conversions, with some merchants exceeding a 30% lift in sales,” the company says.
A June 2019 Internet Retailer survey conducted by Bizrate Insights of 1,052 consumers backs this up. 44.0% of online shoppers said they had not completed an order because it wouldn’t arrive soon enough, while 20% said they abandoned an online shopping cart because the delivery date was unclear.
On the heels of two-day delivery, Deliverr plans to extend the reach of its fulfillment network so it can support its new program, NextDay delivery, which will be available in the coming months in select areas, but it did not specify a date or locations. In addition, the vendor plans to expand to other ecommerce platforms aside from Shopify to reach more merchants.
Amazon.com Inc. is No. 3 in the ranking of Internet Retailer Online Marketplaces, eBay Inc. is No. 5 and Walmart Inc. is No. 11. Within Internet Retailer’s Top 1000, 37 online retailers use Shopify as their ecommerce platform. It is ranked as the No. 5 vendor of ecommerce platforms in Internet Retailer’s forthcoming Leading Vendors report.