Shopify says it will not reduce supply capacity, shares rebound

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Shopify says it will not reduce supply capacity, shares rebound

Shopify's logo is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS Chris Wattie File Photo

On Monday, a Canadian e-commerce giant Shopify Inc said that the fulfillment network would not reduce capacity to meet the needs of its customers, which will help shares reverse course to trade up 7%.

A global tech sell off and a report last week that Shopify was terminating or reducing contracts with warehouses and fulfillment partners, which could reduce its capacity to ship orders from merchants, weighed down the plunge of nearly 9% earlier in the session to an 18 month low.

The company said on Monday that they will make changes to the Shopify fulfillment network to help merchants compete with big-box retailers, such as priority of two-day shipping at affordable prices and easy returns for U.S. shoppers.