Shopify (NYSE:SHOP) offered a glimpse of its plans to carefully build out its fulfillment network — and wade deeper into Amazon’s (NASDAQ:AMZN) territory — as the Canadian e-commerce company reported a 47% increase in revenue during the fourth quarter.
The company said it intends to continue its “measured approach” to growing the Shopify Fulfillment Network by focusing on merchant experience and “adding scale only at the rate at which service levels can be maintained.”
Shopify recorded $505.2 million in revenue during the fourth quarter, a 47% improvement over the same period in 2018. The company, which reports in U.S. dollars, had an adjusted net income of $34.3 million, or $0.30 per share, versus $44.1 million a year earlier.
The company also deployed automated warehouse technology at a fulfillment provider from its recently acquired 6 River Systems.
Shopify announced the launch of its U.S.-based fulfillment network in June. It leverages third-party warehouses where Shopify merchants maintain inventories and ship to customers.
Did you know?
Ice road truckers can earn $30,000 to $40,000 in just three months of dangerous work, making them some of the highest-paid drivers out there.
“You don’t know what you don’t know until you know it, and then you have to do something about it.”
— Sherri Brumbaugh, president and CEO of Garner Trucking, discussing carrier profitability during the Katz, Sapper & Miller 2020 Trucking Owners and Leaders Roundtable
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Shopify’s slow ramp-up of its fulfillment business seems to reflect the approach of founder and CEO Tobi Lutke. He revealed on Twitter in December that he seldom works more than 40 hours per week.
“The only times I worked more than 40 hours in a week was when I had the burning desire to do so. I need 8ish hours of sleep a night. Same with everybody else, whether we admit it or not,” he tweeted.
Hammer down, everyone!