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As eBay and Amazon continue to be the powerhouses of the online marketplace, eBay recently made a bold move to win market share from its rival, Amazon. Positioning itself as a worthy competitor to Amazon, eBay announced new managed delivery services scheduled to begin in 2020 that intend to offer cheaper and faster delivery.
EBay will provide its merchants with a more hands-on approach of shipping goods. The service at its core, will allow eBay to take ownership of its deliveries, as opposed to sellers being responsible for shipping their goods. As part of the strategy, eBay will leverage the capacity of existing warehouses in order to provide more efficiency, lower costs and improved velocity when shipping parcels. Unlike Amazon, eBay will not build or take ownership of the warehouses; instead it will negotiate discounts with logistics partners using their 1.5 million U.S. packages a day as a bargaining tool. With this model in place, eBay merchants can store inventory in warehouses across the U.S. so products can be delivered in two days at competitive rates.
Prior to the launch of managed delivery services, eBay had not been involved in the delivery of goods ordered from its marketplace. As a result, shipping inconsistencies were prevalent and eBay gained a reputation of unreliable delivery times, which is frustrating to buyers. With this new managed service, the more than 180 million eBay shoppers globally will soon have the confidence of knowing their packages will arrive in a promised timeframe that’s competitive to Amazon. The restructuring of eBay’s shipping policy will also have a positive effect on merchants. By offering the support of logistics services, merchants who are typically small sellers, will now be better positioned to build their brand and grow their business.
eBay prides itself on its unique offerings and great choices. Now, by providing its customers with even better shipping options, tracking, and delivery speed, eBay has a robust offering that just might give it that added competitive edge it has been seeking.
Do you have that edge over your competition? Are you taking control of your shipping costs? LJM Group are renowned experts for Parcel Carrier Contract Negotiations and Comprehensive Shipping Consultant Services. By taking control of your shipping contracts, you’ll realize tremendous opportunities to decrease your parcel spend.