UPS announces new merchant, warehouse matchmaking platform

UPS announced the launch of its newest business, Ware2Go, a digital merchant and warehouse matchmaking service, Tuesday. The digital platform is designed to match warehouse space and fulfillment services with small and medium-sized companies working to get online orders out fast.

Ware2Go recruits and certifies warehouses in various locations in order to create a qualified fulfillment network for merchants to choose from, allowing them to position products close to customers without wading through piles of research on different providers.

The new platform will provide business with end-to-end fulfillment services, including storage, pick and pack services and shipping with two-day delivery via UPS. Ware2Go’s relationship with the warehouses may also unlock better service and lower rates for merchants, according to a media release from UPS.

“Ware2Go uses innovative online technology to match excess warehouse and fulfillment capacity with merchant demand to provide transparent inventory, order fulfillment and final delivery,” said UPS Chief Transformation and Strategy Officer Scott Price. “We’re solving for two major problems: speed to market and efficient warehousing.”

The new technology company complements UPS’ existing suite of custom e-commerce solutions, according to the release.

Ware2Go’s ideal clients include merchants who sell online, primarily to other businesses. These merchants typically don’t have many distribution centers and could benefit from more warehouse space in other parts of the country in order to make transit more efficient.

“UPS launched Ware2Go because our experience taught us that merchants struggle to find available warehouse space and warehouse operators who don’t have large sales team can’t always find merchants to fill underutilized capacity,” said Vikki Conwell, UPS corporate public relations. “Now, Ware2Go does the recruiting and matching but also vets the warehouses and handles the on-boarding and payment. So, the whole process is simplified and a win-win for merchants and warehouses.”

When warehouses register to use Ware2Go, the company identifies unused capacity and matching warehouses with merchants seeking fulfillment services. Ware2Go also handles on-boarding and invoicing, freeing up warehouses’ sales and administrative resources, according to the release.

“The flexibility Ware2Go offers merchants and warehouse operators, especially companies in the industrial, automotive and tech sectors, means they can compete more effectively and profitably in the market,” Price said. “Ware2Go leverages the scope and scale of UPS’s network to provide an integrated delivery solution to improve management of the order-to-delivery experience.”

Deutsche Bank weighed in on the announcement, saying the move “makes a lot of sense” given the growing e-commerce landscape. Analysts noted that, while financial details are limited, the new business is expected to be a significant revenue opportunity over time for UPS.

“Ware2Go appears to be a well-designed offering, whereby UPS can connect retailers with capacity in an asset-light model while also sourcing add’l volume to build much-needed density in its Domestic/B2C shipments,” the Deutsche Bank report stated. “With respect to the competitive landscape, we aren’t too concerned about read-through implications for XPO vis-à-vis XPO Direct. For one, the market opportunity is significant, allowing for several players.”

Ware2Go initially launched in July.