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Dive brief:
- According to the logistics provider’s website, the minimum FlexPort monthly cost for its realization service increases from $ 500 to $ 5,000 at the beginning of 2026.
- The minimum cost factors in the “non -D2C storage cost” of a merchant, which includes eight categories: realization, storage, package, full truck load and less freight than harvesting, pallet and case shipping, labeling services, preparation and processing of credit card.
- If a seller spends less than the minimum monthly in eight categories in a given month, Flexport will pay the difference between their actual cost and the minimum. This fee is included in the first factor of the following month.
Dive insight:
The company said the cost to help FlexPort is “maintaining the operational capacity and infrastructure needed to support merchants” in its realization network. When Flexport launched $ 500 on July 1, the company announced that only businessmen are expected to affect less than 40 orders a month.
“You can avoid the minimum monthly fee by using the more non -D2C storage services provided by us,” Flexport said on its website. “In addition, with the continuation of your business, the impact of costs is reduced.”
The minimum cost of $ 5,000 since January means that a wider range of merchants using Flexport can be vulnerable to cost. Matthew Hertz, the founder and CEO of Third Party, said: “Marks that are looking for FlexPort’s realization options have options, but the replacement of the Q4 transporter will” make it a bit challenging, “said Matthew Hertz, the founder and manager of the third party.
“There are a lot of 3PLs that can support these brands well, and if their stack is simple (ie, Shopify) they should not quickly have a problem with transfer,” Hertz said in Linkedin.
After reaching the Shopify logistics arm in 2023, Flexport provided real -time and medium -sized jobs such as Flexport Revolution. But a spokesman for the company last year told the Supplian Dive Dive that FlexPort focuses on the bigger customers for its business profitability scale.
In its realization services, Flexport unveiled a DropSipping offer earlier this year and an AI demand planning plan and inventory distribution.
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