Anyone who is even remotely conscious of the world we live in today will comfortably tell you that Amazon has taken over the e-commerce market. The company is currently the most valuable brand in the world. And through some shrewd business practices, it has been able to achieve a literal chokehold on e-commerce. At this point, others are just living in its shadow.
One of these ‘others’ is eBay, but there is a good chance that eBay may start upping its game in the near future.
Now, before you go about getting all excited about the prospect of someone knocking Amazon off its perch, know this: while eBay is actually doing pretty fine as an auction site, there is no way that it can compete with Amazon in terms of revenue, and at this point, that ship has pretty much sailed. However, the former is getting ready to launch a service that just might take on Amazon’s entire service offering more directly.
eBay’s Managed Delivery Service
Earlier this week, a press release revealed that eBay is in the process of launching a Managed Delivery service.
Why is this so important?
Well, Managed Delivery is an end-to-end fulfillment offering that will work for eBay sellers. Essentially, eBay will store all of its user merchandise in select third-party warehouses much like Amazon’s FBA service. This way, fulfillment will be much faster, allowing sellers to provide free shipping and get products to customers within two or three days.
The press release stated that Managed Delivery is targeted at sellers who have high inventories, as they would be able to capitalize on it to meet increasing customer expectations. The auction site will provide sellers with logistics partners who will in turn help with storage and product placement.
By placing their goods closer to where the customers are, deliveries will be much faster, and overall efficiency will be enhanced as well. Given how much market dominance Amazon has been able to attain (with its next day shipping service), this could be eBay’s way of entering and potentially disrupting that service and market dominance.
eBay is looking at improving its branding with this as well, as they believe that increased exposure with the Managed Delivery service will improve their standing with both sellers and buyers and overall customer experience.
The Managed Delivery offering, upon its launch, is expected to apply to about half of the items that are currently listed on eBay.