eBay has announced plans to launch it own execution service called Managed Delivery, which will deliver end-to-end packaging and deliveries to its sellers. The e-commerce giant plans to launch Managed Delivery in the US next year through a network of external partners for delivering warehousing, packaging and delivery services through eBay's technology platform. eBay says its sellers ship 1.5 million packages to the US every day, and Reuters reports that about 40 to 50 percent of the items on the site are eligible to use the new plan.
The launch of Managed Delivery represents a major change for eBay, which tends to take a hands-off approach to the way sellers deliver their products. However, this approach has led to service inconsistencies. The new execution platform should help solve this problem, but it brings eBay into much closer competition with Amazon. Although the Seattle-based company owns and operates its own network of warehouses, eBay plans to pay external suppliers to deliver them.
eBay says that Managed Delivery strives to deliver packages within two to three days, according to Bloombergand that it simplifies sellers and reduces costs to get products into the hands of their customers. It also says that customers will benefit from faster and more reliable deliveries. In addition to making its platform more attractive for sellers and buyers, eBay will also benefit from the increased brand awareness associated with millions of packages that are transported in packaging with the company logo.
Bloomberg quotes a seller who was involved in a trial with eBay's delivery service, who said that eBay charged him $ 3.99 for sending a package from California to New Jersey, compared to the $ 3.09 he had previously had spent, excluding the costs of packaging material. More important, however, was the fact that he saved the time he usually spent packing his products by outsourcing the work to eBay. "I can concentrate on running my business and adding products instead of packing boxes all day," he said.