Fulfillment by Shopify: Your Complete Guide to the Shopify Fulfillment Network (SFN)

For 34% of eCommerce businesses, managing inventory across multiple sales channels is difficult, leading to stock discrepancies and fulfillment delays. 

Only if a network could take care of these multiple warehouses and overall fulfillment for the SMBs (and enterprises) that are upto their eyeballs with ops challenges. 

If your eCommerce business is on Shopify, you can outsource your fulfillment complexities while maintaining visibility and control through Shopify’s admin dashboard.

The Shopify Fulfillment Network (SFN) is a fulfillment solution that simplifies eCommerce logistics for Shopify merchants. It integrates seamlessly with the Shopify platform to manage inventory storage, order fulfillment, and shipping from one central location. 

What is Shopify Fulfillment Network?

The Shopify Fulfillment Network (SFN) is a robust network of fulfillment centers strategically located across North America. This network is designed to help Shopify merchants store their inventory and efficiently fulfill customer orders. 

SFN partners with Flexport to deliver the order fulfillment process. 

From inventory storage to shipping, SFN ensures that products are delivered to customers quickly and reliably, enhancing the overall shopping experience.

Key Benefits of the Shopify Fulfillment Network App

SFN provides several advantages to Shopify merchants:

1. Centralized Inventory Management

With the Shopify fulfillment service, you get free custom packaging using your branded material to enhance your brand identity further. Merchants can send their inventory to a single fulfillment center, and Flexport redistributes it across a network of strategically located warehouses. This ensures that products are stored close to customers, reducing shipping times and costs.

2. Affordable and Reliable Shipping

Flexport automatically selects the most efficient and cost-effective shipping methods for each order. Rates are competitive and transparent, ensuring businesses can maintain predictable shipping expenses.

3. Streamlined Returns Management

SFN takes the hassle out of processing returns. Returned products are handled directly by Flexport and restocked in the inventory system quickly, reducing downtime and improving inventory accuracy.

4. Integrated Dashboard Management

Monitor order statuses, track shipments, and manage inventory transfers—all within the Shopify admin interface. This centralization minimizes the need for additional tools or software. The Shopify Fulfillment Network app is a vital tool, linking Shopify stores with trusted fulfillment partners to streamline order management and offer efficient delivery options.

Who Can Benefit from SFN for Ecommerce Businesses?

SFN is ideal for:

• Small-to-Medium Shopify Merchants: Businesses looking to scale operations without the overhead of maintaining their own warehouses or fulfillment teams.
• U.S.-Based Merchants: Since SFN’s network is optimized for U.S. operations, businesses shipping domestically can benefit most from the reduced shipping times and costs.
• Growing Businesses: Companies aiming to meet increasing customer expectations for fast and affordable delivery can leverage SFN to maintain competitive service levels.
• Merchants With High-Volume Inventory Needs: Businesses with consistent or high order volumes can simplify logistics by outsourcing fulfillment.

Choosing the right fulfillment partner is crucial for businesses looking to scale operations efficiently and meet customer expectations.

How does the Shopify Order Fulfillment Process Work?

If you’re trying to work out how to fulfill orders on Shopify, know that the Shopify Fulfillment Network simplifies the entire fulfillment process and doesn’t require you to be tech-savvy.

Steps to Activate SFN:

1. Create an Inbound Transfer: Set up an inventory transfer to a Flexport facility. This includes providing billing details and shipping inventory.
2. Prepare Your Products: Label and pack your items to ensure seamless processing at Flexport’s fulfillment centers.
3. Ship Inventory to Flexport: Send your inventory to a designated Flexport warehouse for processing and redistribution.

Customize Fulfillment Settings:

• Assign customer-facing names to shipping options, enhancing clarity at checkout.
• Enable international fulfillment if you plan to ship outside the U.S.
• Add shipping rates for the SFN-Flexport location to reflect accurate costs.
• Set priority rules for routing orders across fulfillment centers, ensuring inventory is sourced from the most logical location.

Connecting Flexport to Shopify:

1. Navigate to Apps > Fulfillment Network in your Shopify admin.
2. Click Connect Your Store to start the integration process.
3. Sign in to Flexport or create an account using Facebook, Google, or Shopify credentials.
4. Allow required permissions, and wait for the syncing process to complete.
5. To review inventory in Flexport, access synced products and monitor inventory from the Flexport dashboard. If delays occur, manually resync products to ensure accuracy.

Eligibility Criteria for Shopify Fulfillment Network

Shopify Fulfillment Network, while offering a more streamlined way of shipping your products, it does require your business to check a few lists of items to ensure a seamless distribution process. As a fulfillment provider, SFN ensures that your products are stored, picked, packed, and shipped efficiently, optimizing your e-commerce logistics.

1. Product Requirements:

• Barcodes and SKUs: Every product and variant must have a unique barcode and SKU.
• Dimensions and Weight: Products must meet Flexport’s size and weight requirements to qualify for fulfillment.
• Restricted Products: Certain items, such as hazardous materials or prohibited goods, cannot be fulfilled through SFN. Merchants must verify that their products comply with Flexport’s restrictions.
• Active Products: Only active and published products in your Shopify store can be synced to SFN.
• SKU Format: SKUs must not contain spaces or special characters.

2. Business Location:

• SFN is optimized for merchants shipping from the United States or focusing on domestic U.S. customers.
• International merchants can still use SFN if they ship inventory to the U.S. for fulfillment, but shipping outside the U.S. might require additional settings.

3. Order Volume:

• SFN is best suited for businesses with consistent order volumes. While there’s no strict minimum, merchants with small, infrequent shipments may not fully benefit from SFN’s cost structure.

4. Inventory Management:

• Merchants must be prepared to send inventory to Flexport’s fulfillment centers.
• Products must be packaged according to Flexport’s guidelines to ensure smooth processing.

5. Returns and Customer Policies:

• Merchants must define return policies that align with SFN’s capabilities, as Flexport handles returns and restocking.

6. Billing and Setup:

• A valid billing account is required for storage, shipping, and other SFN services.
• Merchants must complete onboarding, including setting up fulfillment priority rules and connecting their Shopify store to SFN.

Pricing Structure of SFN

SFN pricing is based on multiple factors, including:

• Storage Costs: Fees for holding inventory in Flexport’s warehouses.
• Fulfillment Fees: Charges for picking, packing, and shipping orders.
• Additional Services: Costs associated with returns, international shipping, or expedited delivery options.
• Fast delivery executed within 2-3 days.
• Inventory receiving and forwarding.
• Shipping discounts.

Monitoring inventory levels is crucial to ensure cost efficiency and avoid unnecessary storage fees.

Merchants should evaluate these costs relative to their order volume and fulfillment needs to determine the financial viability of SFN.

Pros and Cons of Deploying Shopify Fulfillment Network

The decision to offer fulfillment by Shopify was a powerful move by the platform to enter the eCommerce fulfillment market. While it seems like a great service, there is, of course, a list of pros and cons that come with it.

As a fulfillment company, SFN manages your inventory and shipping, allowing you to focus on other aspects of your business.

Here’s what you should know

Pros:

• Sync inventory information: You can keep track of your stock in real-time across multiple selling platforms through integrated third-party accounts
• Manage all information on the same platform: Orders placed on other platforms like eBay and Amazon are automatically forwarded to your Shopify account. You will be able to process orders for dispatch, receive messages, and collect payment without having to monitor other accounts.
• Lower operation costs: You don’t have to build your fulfillment center or develop a packaging system from scratch.

Cons:

• Costs: Shopify is known for being reasonably expensive, charging $299 for a premium shop plan; its fulfillment by Shopify service will undoubtedly be similarly priced
• Less control over third-party providers: Shopify integrates with many third-party fulfillment providers of which it has less power.

Shopify Fulfillment Network vs. Traditional 3PL

When comparing the Shopify Fulfillment Network (SFN) to traditional Third-Party Logistics (3PL) providers, it’s essential to understand their unique features, advantages, and limitations. This comparison can help businesses determine which option aligns better with their operational needs. Fulfillment companies play a vital role in the ecommerce ecosystem, offering services that optimize storage, reduce delivery times, and handle fluctuating sales efficiently.

Shopify Fulfillment Network (SFN)

The Shopify Fulfillment Network (SFN) is designed to work seamlessly within the Shopify ecosystem, allowing merchants to manage their inventory and orders directly through the Shopify dashboard. The integration process is straightforward, requiring no extensive technical knowledge, making it accessible for businesses of all sizes. 

SFN is optimized for shipping within the United States, leveraging a network of strategically located fulfillment centers to ensure faster delivery times and reduced shipping costs. SFN supports various fulfillment methods, allowing merchants to choose the strategy that best fits their operational needs.

Key features of SFN

• Shopify fulfillment network leverages predictive analytics that utilizes machine learning for inventory management, providing insights that help optimize stock levels and location. 
• Merchants benefit from real-time tracking of shipments, enhancing transparency and customer satisfaction. 
• Additionally, SFN offers custom fulfillment services, including options for same-day fulfillment for orders received by a specific time.

Limitations of Fulfillment Centers

• Its services are restricted to merchants using the Shopify platform, which may not be suitable for those utilizing other e-commerce solutions. 
• Furthermore, costs associated with SFN may fluctuate based on order volume and specific service requirements, potentially complicating budgeting for some businesses. 
• For many businesses, outsourced fulfillment through SFN represents a significant shift from managing logistics in-house to leveraging third-party expertise.

Traditional Third-Party Logistics (3PL)

3PL providers offer greater flexibility and a wider range of services, including international shipping and complex logistics solutions tailored to specific business needs. Businesses can choose from various service levels and customize their logistics strategy as they grow, making 3PLs suitable for larger or more diverse operations. Choosing the right fulfillment method is crucial for optimizing logistics and meeting customer expectations.

Integration Requirements

Integrating a traditional 3PL with Shopify often requires additional software or technical setup, which can be a barrier for some merchants. Many 3PLs provide extensive logistics services beyond fulfillment, such as inventory management, packaging customization, and returns handling. 

They also support sales across multiple platforms, not just Shopify, allowing businesses to diversify their sales channels effectively. Integrating with a 3PL can streamline fulfillment processes and enhance operational efficiency for Shopify stores.

Comprehensive Service Range: Many 3PLs provide extensive logistics services beyond fulfillment, such as inventory management, packaging customization, and returns handling.

Omnichannel Support: 3PLs often support sales across multiple platforms, not just Shopify, allowing businesses to diversify their sales channels effectively14.

Limitations

• However, managing a traditional 3PL can be complex due to the need for external integrations compared to the streamlined approach of SFN. 
• Additionally, costs may vary significantly depending on the services required and the provider selected, which could be higher than the more predictable pricing structure of SFN.

Questions to Ask Before Joining the Shopify Fulfillment Network

• Are your products eligible for fulfillment through SFN?
• Does SFN’s pricing align with your business budget and shipping volume?
• Will SFN meet your customers’ delivery expectations?
• Are you prepared to manage fulfillment settings and inventory transfers?

Make Your Fulfillment Journey Easy with Easyship!

Looking for a more versatile solution? Order fulfillment doesn't have to be a headache—Easyship's fulfillment centers and worldwide network of eCommerce fulfillment partners can help you scale global revenues while controlling costs.

Moreover, Easyship offers an all-in-one shipping and fulfillment platform with over 250 courier options, helping you save up to 91% on shipping costs. 

Expand your reach, manage international shipping, and streamline logistics with Easyship.

FAQs

1. What is the Shopify Fulfillment Network?
   SFN is a fulfillment solution by Shopify that allows merchants to store inventory and fulfill orders efficiently through Flexport.
2. Is the Shopify Fulfillment Network worth it?
   For businesses shipping domestically in the U.S., SFN can be a cost-effective and reliable fulfillment solution.
3. What is the best fulfillment service for Shopify?
   The best service depends on your business’s needs. SFN is ideal for simple domestic shipping, while 3PLs or solutions like Easyship cater to more complex or international requirements.
4. What is fulfillment on Shopify?
   Fulfillment on Shopify refers to managing inventory, picking and packing orders, and shipping products to customers.