The international e-commerce company Shopify announced June 6 that it had completed the majority sale of its Shopify Logistics business to Flexport, a supply chain management and logistics organization. In connection with the sale, Shopify received stock that equates to 13% equity in Flexport.

Prior to this, Shopify announced May 3, 2023 that it planned to sell its logistics business to Flexport.

The transaction allows Flexport to expand its e-commerce fulfillment operations as it aims its freight-forwarding business more directly at retailers. The Wall Street Journal previously reported the digital-focused operator would be buying Shopify’s logistics business, including the Deliverr technology platform as well as dozens of warehouses and sorting centers.

The completed transaction now sets up Flexport as a potential rival to Amazon for fulfillment services for merchants that sell goods online. That’s familiar territory for Flexport CEO Dave Clark, the former Amazon executive who spearheaded the e-commerce market leader’s enormous expansion of its logistics network. 

With the sale of Deliverr and warehouse robotics company 6 River Systems to U.K. online grocer Ocado, Shopify is effectively abandoning efforts to stand up its own logistics operation. Clark says Flexport’s logistics service now will allow merchants to handle imports and last-mile delivery through one platform, and to fulfill orders through their own websites and stores.