Shopify should merge with (or takeover) FedEx.
I was chatting with some friends at a Christmas party in Singapore a few days ago about the recent FedEx result. This was the conclusion we reached.
It would be a radical move that could challenge Amazon’s complete dominance of the eCommerce market in the US (and most of the “western world”).
Shopify has become a force in eCommerce. Literally anyone with a PC can open up an online retail store within a couple of hours using their platform.
But multinational companies like Unilever, Johnson & Johnson and more recently Nike, have migrated to Shopify’s platform. Nike recently – and quite publicly – stopped selling on Amazon. The prevailing wisdom for anyone in eCommerce has been “go where the marketplace already is”. And this makes total sense for “Mom and Pop” online stores (although Etsy is another exciting company to watch in this space).
But Nike was struggling with the fact that they didn’t control the customer experience within Amazon. For example, when a potential customer searched for a pair of Nike shoes, Amazon would recommend Adidas and New Balance shoes as alternatives. Nike also struggled with the array of counterfeit products being offered on Amazon.
On Shopify’s platform, Nike get’s to have a direct relationship with their customers and control the customer experience.
Shopify is now moving into logistics and fulfillment centres, which is where FedEx comes in. Amazon has already started to build its own logistics network and the loss of Amazon’s business is weighing on FedEx.
A combined Shopify-FedEx would achieve significant goals for both companies and meaningfully alter the global eCommerce landscape.