Shopify has announced it will be acquiring Massachusetts-based warehouse automation and fulfillment solutions provider 6 River Systems Inc. This comes just after a few months after the launch of the Shopify Fulfillment Network, which utilizes Shopify’s machine learning-powered inventory allocation technology to determine the closest, most efficient fulfillment centers for its merchants.
Shopify plans on adding the 6 River Systems cloud-based software and collaborative mobile robots called “Chuck” to the Shopify Fulfillment Network to increase operational efficiencies.
By adding robotics and warehouse automation to its Shopify Fulfillment Network, it could help improve fulfillment operations for Shopify merchants in the network. According to Shopify, the new technology is expected to reduce shipping costs and possibly even result in faster delivery times to customers.
By making this technology accessible to smaller merchants in Shopify Fulfillment Network, this will help them to compete with retail giants that offer one or two day shipping for free.
“By joining Shopify, we’re changing the game of fulfillment. Together, we will help thousands of businesses improve their fulfillment operations, with an easy-to-learn solution that can more than double productivity and improve accuracy,” said Jerome Dubois, co-CEO and co-founder of 6 River Systems.
Shopify will shell out approximately $450 million to acquire 6 River Systems.
The 6 River Systems solution operates is over 20 facilities in the U.S., Canada and Europe and fulfills millions of units weekly for companies including DHL, XPO Logistics and Office Depot.
The acquisition is seen as a critical step towards accelerating the growth of the Shopify Fulfillment Network.