Shopify (NYSE: SHOP) has grown into a giant in the world of e-commerce software, but in the process, its operations became complex and hard for investors to decipher. However, soon, shareholders will have at least one less business to worry about: logistics.

After shelling out $2.1 billion to acquire shipping solutions provider Deliverr in July 2022, Shopify announced, in conjunction with its Q1 earnings update last week, that it's selling Deliverr and most of its other logistics operations. That hard pivot will rack up some losses, but I don't disagree with the rationale. Shopify's management has realized its finite resources are best used on the software front, not on trying to compete directly with the likes of Amazon in online order fulfillment by constructing warehouses and assembling a fleet of delivery vehicles. 

It's a powerful lesson. Patience is a virtue in investing. Given that it's throwing in the towel less than a year after making its big logistics bet, Shopify certainly doesn't appear to have been patient in this matter. Nevertheless, it's often the case that cutting one's losses and moving on is the best path forward if an investment isn't panning out as expected.

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Source Fool.com