Shopify just announced that they will be shutting down the Oberlo app on June 15th, 2022. This is the end of an era, as Oberlo has been one of the key pillars of the Dropshipping movement for the most part of the last decade.
For a long time, Oberlo was simply a must-have app for any newly created Dropshipping store. It popularized Dropshipping to vast cohorts of young business owners who enjoyed its simplicity. With a few clicks, you’d be able to add products from marketplaces like AliExpress to your Shopify store. Dropshipping is still very popular, as it allows you to start an e-commerce business with very little capital, without ordering and managing stock, and with limited working capital needs.
Oberlo, which was acquired by Shopify in 2017 for $15 million, is still used by 100 000 active stores, making it a super popular app.
However, Shopify has delisted the Oberlo app from its App Store on May 12th, 2022. It can no longer be installed, including from any other 3rd party source.
More critically, if you already have it installed, the App will be automatically uninstalled on June 15th, 2022. It will then be completely unaccessible.
This is a serious move by Shopify, which could be linked to recent issues with many Dropshipping stores’ shipping delays. The global supply chain disruptions have created many issues for websites that relied on shipping overseas products from China.
This may also be linked to the recent news by Shopify about the Delivery acquisition and its ambitions to creating a more integration shipping experience within the Shopify app.
Right now, there isn’t an official communication from Shopify or Oberlo really explaining the reasons behind this decision.
In this video, we discuss in more detail this piece of news and try to understand its repercussions on Dropshipping.
Shopify announced the largest acquisition in its history: Deliverr for $2.1B.
Deliverr is an end-to-end supply chain management solution for independent merchants. Shopify will integrate with its existing Shopify Fulfillment Network, and warehouse robotics arm into a whole new integrated Logistics division.
As a result, Shopify is already making strategic moves and bold announcements!
With Shopify Promise, they’re guaranteeing 2-day delivery for merchants that will be using their new Logistics solutions.
Is Shopify trying to become a logistics giant? Is this a direct response to Amazon’s jab, with the recent announcement of the “Buy with Prime” feature?
Who do you think is better positioned to dominate the SMB e-commerce logistics market?
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