![]() ![]() EBay and Shopify already have built-in customer bases for their new fulfillment services, making the platforms competitive in a universe with a wide range of fulfillment services beyond FBA. There may be value in the data a fulfillment program can generate, as eBay and Shopify get a better view of their sellers’ activities. The movement of e-commerce stakeholders (even those without a physical supply chain of their own) into the fulfillment service has several advantages. In other words, the first priority may be boosting seller retention - especially for high-volume sellers - rather than recruiting new users. Though it may be tempting to see these efforts by Shopify and eBay, and those that come from retail stakeholders in the future, as attempts to cash in on seemingly unending e-commerce volume, the move into fulfillment may be more defensive than offensive, according to Adam Blankenship, Chief Commercial Officer for BlueGrace Logistics. Wenig described eBay’s service as an answer to repeated requests from eBay sellers who wanted the company to handle more of their e-commerce activities. #Chaindive game freeOut of 800 global merchant respondents, just 6% currently offer free two-day shipping, and only another 4% plan to do so this year. And according to Gartner’s Tom Enright, four business days of delivery time is standard for most retailers.įurthermore, BigCommerce cited several reasons respondents did not want to work with Amazon, including negative brand alignment, a lack of trust and a desire to own their data, among others. So why would sellers choose eBay or Shopify when their prices and shipping speeds likely can’t match FBA?įrom where most shippers sit, two to three days shipping time would actually be an improvement, according to a recent survey from BigCommerce. But despite the potential shipping volume, eBay’s CEO implied it is unlikely his fulfillment program will be able to compete with FBA on speed or price. Wenig’s caveats about speed were clearly aimed at Amazon, which launched Fulfillment by Amazon (FBA) in 2006 and recently announced the transition of Amazon Prime’s standard shipping time from two days to one.Īmazon and eBay are the number one and two customers of USPS and by some accounts, Shopify is headed into the third-place slot. You’re not going to hear one-hour delivery, five-minute delivery,” said Wenig, explaining that eBay’s delivery speeds will be around three days with the goal of getting down to two.ĮBay’s foray into order fulfillment will be run by third-party partners through eBay technology - a move that followed a similar announcement from e-commerce platform Shopify just one month earlier. “We don’t want to win a fast shipping game - that’s not the point. ![]() #Chaindive game fullTo a room full of eBay sellers, the CEO emphasized what the company’s new fulfillment program, deemed “managed delivery,” is not. “If you need paper towels in four minutes … we’re not your guys,” said eBay CEO Devin Wenig from the stage of the e-commerce marketplace’s annual seller conference July 24. ![]() The CEO of eBay implied prices and shipping times may not match those of Fulfillment by Amazon, but its new e-commerce fulfillment service could offer other benefits to sellers. As eBay, Shopify jump into the fulfillment game, are they playing offense or defense? ![]()
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