Shopify Fulfillment Network: How It Works

The Shopify Fulfillment Network (SFN) is Shopify's fulfillment service that handles storage, picking, packing, and shipping for your orders. Instead of managing your own warehouse or working with third-party logistics providers, SFN handles the physical fulfillment so you can focus on other aspects of your business.

Note: Shopify has evolved its fulfillment strategy over time. SFN's availability and features may have changed since this article was written. Check Shopify's fulfillment page for the latest information on their fulfillment offerings.

What Is SFN?

SFN is an end-to-end fulfillment solution:

• Inventory storage: Your products are stored in Shopify's fulfillment centers
• Order processing: Orders from your store are automatically sent to SFN
• Pick and pack: Items are picked, packed, and prepared for shipping
• Shipping: Orders are shipped to customers via optimized carriers
• Returns: SFN can process returns and restock items

How SFN Works

1. Send Inventory to SFN

Ship your products to Shopify's fulfillment centers:

• Create an inbound transfer in Shopify
• Label and ship inventory to the designated center
• SFN receives and stores your products

2. Orders Are Fulfilled Automatically

When a customer places an order:

• Order data flows directly to SFN
• SFN selects the optimal fulfillment center
• Items are picked and packed
• Shipping label is generated
• Order is shipped and tracking updates your store

3. Customers Receive Orders

• Fast shipping (2-day delivery for most US addresses)
• Your branding on packing slips and packaging inserts
• Tracking information sent automatically

SFN Pricing

SFN costs include:

• Fulfillment fees: Per-order fee for picking, packing, and shipping
• Storage fees: Monthly fee per cubic foot of space used
• Receiving fees: For processing inbound inventory
• Special handling: Additional fees for fragile items or special requirements

Exact costs depend on product dimensions, weight, and order volume. Contact Shopify for a quote.

Eligibility Requirements

• US-based Shopify merchant
• Minimum order volume (varies)
• Products within size and weight limits
• No prohibited items (hazmat, perishables, batteries, etc.)

Benefits of SFN

For Merchants

• No warehouse management: Outsource physical operations
• Scalability: Handle volume increases without infrastructure changes
• Direct Shopify integration: Built-in connection to your store
• Inventory visibility: Real-time stock levels in Shopify admin

For Customers

• Fast shipping: 2-day delivery for most US destinations
• Reliable fulfillment: Professional picking and packing
• Accurate tracking: Shipment updates throughout delivery

SFN and Product Organization

Your collections and inventory work directly with SFN:

• Products in any collection can be fulfilled by SFN
• Inventory levels update automatically across all channels
• Multi-location inventory tracking includes SFN warehouses

SFN vs. Other Options

SFN vs. Self-Fulfillment

• SFN: No warehouse lease, no staff to hire, scales with holiday spikes automatically. You lose control over packing quality and custom inserts.
• Self-fulfillment: Full control over unboxing experience, lower per-order cost under ~50 orders/day, but you need space, shipping supplies, and people.
• Break-even: Self-fulfillment is usually cheaper under 30-50 orders per day. Above that, warehouse costs and staffing often exceed SFN fees.

SFN vs. Third-Party Logistics (3PL)

• SFN: Single integration with Shopify admin, no API setup needed, inventory syncs automatically. Limited to US fulfillment centers.
• 3PL (ShipBob, Deliverr, etc.): International warehouse options, may offer better rates at high volume (1,000+ orders/month), but requires separate integration and inventory management.

SFN vs. Amazon FBA

• SFN: Ships in your branded packaging, supports DTC (direct-to-consumer) identity, inventory managed in Shopify admin
• Amazon FBA: Prime badge eligibility, access to Amazon's customer base, but ships in Amazon-branded boxes and charges long-term storage fees
• Key difference: FBA is best if you sell primarily on Amazon. SFN is best if your main channel is your Shopify store.

Limitations

• US-only fulfillment (no international warehouses)
• Minimum order volume requirements
• Product restrictions (size, weight, category)
• Less control than self-fulfillment

Getting Started with SFN

1. Review eligibility requirements
2. Request a quote from Shopify
3. Prepare product information and packaging requirements
4. Ship inventory to fulfillment centers
5. Enable SFN fulfillment for products in Shopify
6. Orders begin fulfilling automatically

Conclusion

Shopify Fulfillment Network provides a turnkey solution for merchants who want to outsource physical fulfillment while maintaining tight integration with their Shopify store. It's best suited for growing US-based businesses with moderate to high order volumes who want fast shipping without managing their own warehouse operations.

Related Resources

• Shopify Fulfillment Network
• Shopify Inventory Management
• Shopify Shipping Rates