Shopify is set to roll out a $1 billion network of fulfilment centres across the US as it hopes to rival Amazon’s delivery network.
The Canadian ecommerce giant revealed its plan during its annual developers’ conference, which is aimed at preventing losses incurred in the final stages of delivery “due to complex shipping costs”.
Like Amazon, it will now create its own delivery infrastructure, using machine learning to predict demand and suggest the closest fulfilment centres to merchants using its platform.
This could allow Shopify to pool shipments from different online stores together and subsequently drop its prices.
Shopify also announced a host of other technological innovations it was due to roll out during its conference, including video and 3D modelling for products, new language capabilities, multi-currency payments and a brand-new point of sales system due for launch later this year.
Following the string of announcements, the ecommerce giant saw its share price skyrocket 5.1 per cent to nearly $320, solidifying its place as the top performing stock in Canada this year.