eBay

eBay Planning New Shipping Service to Challenge Rival Amazon

eBay is launching a service to deliver orders more quickly and cheaply, the company’s latest effort to be more appealing to shoppers and sellers as well as compete with Amazon.com.

eBay is not planning to build its own warehouse network like Amazon. Instead, it will use the collective volume of its sellers – about 1.5 million packages a day in the US – to negotiate discounts with logistics partners it declined to name for warehouse space, packing and delivery. The goal is to let eBay merchants store inventory in warehouses around the US so products can be delivered in two or three days at competitive rates. eBay plans to roll out its “Managed Delivery” service in 2020 and will run it on behalf of merchants through its own technology platform.

The company hopes to peel some business away from Fulfillment by Amazon, which is currently used by some eBay merchants. The new service will be cheaper than Amazon’s, and eBay will take responsibility for products lost or damaged in shipping, which is currently the seller’s responsibility. eBay conducted trials of the new service earlier this year in the US, Germany, and the UK.

“We’re offering our millions of sellers a value proposition no one else can,” said Chief Executive Officer Devin Wenig. “We’ll rapidly win market share overseeing delivery of our own orders.”

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