Stord Expands E-Commerce Fulfillment Capabilities Through Acquisition

The company has previously handled over $10 billion in transactions and delivered more than 30 million packages last year, serving approximately 11.5% of U.S. homes. For instance, Stord reported a shipment processing increase of over 50% during Black Friday, with click-to-ship times reduced by over an hour. E-commerce currently accounts for 16.3% of total retail sales, up from 14.6% in 2021.

Stord has announced the acquisition of Shipwire from Ceva Logistics, marking a significant expansion in its e-commerce fulfillment capabilities. This acquisition adds 12 fulfillment centers to Stord's operations and provides access to Ceva's extensive network of 1,000 warehouses. It positions Stord to enhance its offerings for small-to-medium business logistics solutions while consolidating fragmented services for greater operational efficiency.

Enhancing AI and Technology Capabilities

As part of the acquisition, Stord plans to leverage Shipwire's integration with over 200 e-commerce platforms, expanding its reach across the United States, Europe, and Asia. This integration will be complemented by Stord's existing AI technology capabilities, which optimize delivery routes and inventory placement. The company has already launched an AI-driven fulfillment center in Dallas, which enhances customer service capabilities through automated responses to order inquiries.

Stord's facilities currently process orders from various e-commerce marketplaces, with inventory cataloged using barcode scanners and pick-and-packing customized for each customer. The company's investment in AI and automation reflects broader trends in the industry, where 90% of warehouses reportedly use AI or automation, and 60% have achieved advanced maturity.

Expanding Fulfillment Network

With the addition of Shipwire's 12 fulfillment centers, Stord now operates a total of 23 major fulfillment hubs. The company has previously handled over $10 billion in transactions and delivered more than 30 million packages last year, serving approximately 11.5% of U.S. homes. The expansion of its fulfillment network aims to further improve its service capabilities, particularly during peak periods. For instance, Stord reported a shipment processing increase of over 50% during Black Friday, with click-to-ship times reduced by over an hour.

Investing in Future Growth

Stord is also planning a $40 million expansion in Kentucky over the next 5 to 10 years, which is expected to create 500 jobs. This investment will involve upgrading its warehouse in Hebron, Kentucky, incorporating advanced automation and AI technologies along with proprietary systems for management. These upgrades are intended to further streamline operations and enhance service delivery.

E-Commerce Market Trends

The e-commerce sector continues to exhibit robust demand, even as growth rates cool. E-commerce currently accounts for 16.3% of total retail sales, up from 14.6% in 2021. As the fulfillment space remains fragmented, Stord's consolidation efforts through acquisitions like Shipwire aim to provide more comprehensive and efficient logistics solutions for businesses. By expanding its network and leveraging cutting-edge technologies, Stord is positioning itself to meet the evolving needs of the e-commerce market.

“The acquisition of Shipwire and subsequent expansion efforts reflect Stord's commitment to enhancing its e-commerce fulfillment capabilities and addressing the demands of a rapidly changing retail landscape.”