eBay is planning to launch its own fulfillment network dubbed Managed Delivery, which will allow sellers to ship and store goods at its warehouse and and is expected to start operations in 2020.
As eBay is seeking to enable easier and faster shipping by introducing a new fulfillment network, the new network will bring more sellers by allowing them to store their products at eBay's warehouse. The new move by eBay is in a bid to compete with Amazon by offering cheaper prices compared to Fulfillment by Amazon (FBA).
Why Fulfillment Service
According to the CEO and president of eBay, Devin Wenig, the aim of the new service is not to win a fast shipping game. On the contrary, the winning value proposition for eBay is the inventory that sellers provide. Although shipping is still important, allowing sellers to store their products in the company's warehouse will enable them to ship products a lot easier and faster. The end-to-end fulfillment service by eBay comprises of partners who will store, pack, and ship items to customers so they can have them faster.
Source: Business Insider
The new fulfillment service will enable eBay to handle warehouse and inventory shipping of its more than 180 million shoppers who spend more than $100 billion annually. The service, which is similar to the fulfillment service offered by Shopify aims at offering discounted shipping rates for sellers. eBay plans to work on its existing logistics partners and adding a series of buyer and seller protections to bring more sellers way from FBA. Some of the buyer and seller protections that will be added in the new service include tracking of packages and protections against bad delivery experience. The buyer can then make claims if an item was damaged when being delivered or it was never delivered.
Improved Customer Satisfaction
The new fulfillment service will improve customer satisfaction by allowing cheaper and faster delivery of items. The approach is a cost-effective way for eBay sellers to meet increasing customer expectations. They will be able to deliver items on time, lower their shipping costs, and meet the demands of customers.
The fulfillment service will play a crucial role in improving eBay’s brand in the market. With an operational fulfillment network in the U.S., most homes will end up having eBay-branded boxed instead of un-marked brown ones. This is mainly contributed by the fact that eBay is the second-largest consumer of USPS, with 15% of packages shipped by USPS being eBay items.
What it Means to the Shipping Industry
eBay's fulfillment center offers more competition against Amazon by offering a viable option for sellers and creating a way to deliver products to customers faster. The goal is an increase in the overall shipping experience for eBay customers. This also means that USPS shipping rates for eBay products are likely to reduce. You can use InstantShip's free USPS shipping calculator to determine the exact shipping rates, and take advantage of this new opportunity being offered by eBay. With the new service complementing the company’s shipping programs, sellers with high-volume inventory are likely to benefit the most.