eBay has announced it would launch a warehousing and shipping service for merchants selling through its site. This is a new strategy that aims to attract more sellers to the eCommerce platform.
The programme is currently in trial in the US and Germany and is similar to Amazon’s Fulfillment By Amazon service, or FBA. Amazon’s service currently allows merchants to rent space in warehouses worldwide so they can store inventory closer to customers.
This service would help eBay ship products faster, increasingly a key consideration of shoppers when they browse for items online. eBay sellers send about 1.5 million packages daily around the world. Nonetheless, streamlined logistics networks and high warehouse capacity made a delivery service more feasible for eBay.
The original online retail giant will have sellers deploy their goods to warehouses from which they’ll be shipped to customers in eBay-branded boxes. The Managed Delivery service will launch in 2020, beginning in the US.
Currently, eBay sellers handle shipping themselves. The new service will be voluntary for sellers, but eBay says it will provide faster, cheaper and more reliable shipping.
How will it work?
Through the service, eBay will partner with logistics providers to fulfill orders via “strategically located warehouses across the country.” The warehouses will handle pick, pack and ship, while eBay handles customer service. Sellers can manage their inventory through the Seller Hub.
eBay will “negotiate highly competitive rates” on one-, two- and three-day shipping options with third parties on eBay sellers’ behalf. For smaller enterprises, this could also enable them to more easily and affordably offer free shipping, thereby attracting more customers. eBay has yet to release pricing information for the service.
Shopify has also pursued a similar strategy, offering fulfillment services to its small to medium enterprise sellers via an online platform. This would work in conjunction with a network of third-party vendors that includes warehousing and logistics offerings.
“A common request we hear from our high-velocity sellers is to help make delivery of high-volume items easy and fast,” said Devin Wenig, eBay President and CEO. “Managed Delivery will be a competitively-priced logistics solution for businesses selling high-volume goods in popular categories like electronics, home and garden, and fashion. The implementation of this service will dramatically lessen the shipping burden on sellers, while improving the shopping experience and making unboxing fun for buyers.”
Managed Delivery is the third pillar of eBay’s ongoing evolution to create a more managed and better marketplace. The first two pillars being the creation of a managed catalog to make it easier for buyers to find what they are looking for. The second one being the development of managed payments to create greater buyer choice in payment options.
Sellers who qualify for Managed Delivery will experience a range of benefits, including:
-Lower Fulfillment Costs: eBay will negotiate highly competitive rates on delivery options, saving sellers money on fulfillment costs
-Customer Support & Protections: Dedicated eBay customer service and enhanced financial and reputation protections on shipments
-Simplified and Faster Shipping: End-to-end fulfillment services resulting in more inventory delivered faster and with greater reliability
-Increased Sales: Ability for sellers to entice buyers with faster and reliable delivery
-eBay Branded Packaging: Eco-friendly eBay branded packaging for Managed Delivery orders
-eBay warehousing: All products that will be Fulfilled by eBay will be stored in eBay’s own warehouses
Buyers will benefit from:
-Fast Delivery: Millions of popular products arriving faster to buyers’ doorsteps
-Reliability: With 100% tracking, buyers can monitor their packages and know when to expect them
-Free shipping: A significant increase in sellers offering free shipping on products buyers want
-Quality Packaging: Orders arrive in high-quality, sturdy, eco-friendly packaging
-Improved Customer Support: Simpler and quicker resolution on transaction issues
To sum up
This is clearly an answer to Amazon’s own FBA programme. It has been long awaited for and we can’t wait to see how it will turn out.
We have seen the success of Amazon’s Fulfilled-by-Amazon programme. It’s easier for everyone involved, both the seller and the buyer to use this feature. We are certain this programme will take off and be a great success for eBay as well. 2020 is looking to be a great year for both eBay sellers and buyers as well.