Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Aug 5 2012 16:53:22

eBay Now Same-Day Shipping Cannibalizes Marketplace Listings

By: Ina Steiner

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eBay is testing a new same-day shipping service called eBay Now. A consultant's tweet this morning about a new eBay service in San Francisco was picked up by the TechCrunch blog, which published the letter eBay sent to Rakesh Agrawal.

How could eBay promise same-day shipping for items from its millions of sellers? The answer is, of course, that it can't. The new "eBay Now" service offers items from local stores, and while its letter did not say so, eBay is most likely working only with chains such as Best Buy and Toys R Us to power the new same-day delivery service.

Confused? Take a look at eBay.com/local. A search for "iPhone" in my area shows results from Best Buy and Radio Shack.



The service is powered by Milo, which eBay acquired, and provides real-time inventory and pricing information from 50,000 offline retailers such as Home Depot, Lowes, Target, Best Buy, Barnes & Noble and other large retail chains. eBay announced last year that smaller retailers could also upload their inventory onto Milo and eBay using a new inventory management plug-in for QuickBooks.

Why would eBay send shoppers on its marketplace to local retailers? Because eBay wants the inventory and customer experience that large chains can provide, and so it can get those retailers to use eBay and PayPal. That's why it acquired another company called GSI Commerce, which powers sites like Toys R Us.

But sending shoppers away from the eBay Marketplace obviously cannibalizes sales from longtime eBay sellers. For many online-only merchants, Amazon - through its FBA fulfillment service - may be the only way they get close to offering near same-day delivery to shoppers.

Update: See Monday's EcommerceBytes Newsflash for new information and details.




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Perminate Link for eBay Now Same-Day Shipping Cannibalizes Marketplace Listings   eBay Now Same-Day Shipping Cannibalizes Marketplace Listings

by: pace306 This user has validated their user name.

Sun Aug 5 17:42:48 2012

Another blow to small and midsized sellers!

The game is, that you pay to be an anchor store, you get permanent ''Best Match'' and the the buyer buys it on line (FVF's), or eBay gets a referal fee off the transaction for the local pickup sale. Its win win for those ''eBay loves'' ... everyone else gets to drop dead.

Nice eBay very nice - thats why I never loose any sleep using eBay to get NON eBay retail & wholesale customers and sales. You screw me, I screw you!

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by: Digmen1 This user has validated their user name.
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Sun Aug 5 17:43:04 2012

Well spotted Ina

Unbelievable!

It just shows that we should watch what companies ebay buys, because then 6 months later they will be influencing ebay.

Eg Milo and GSI.


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This user has validated their user name. by: Ric

Sun Aug 5 19:58:16 2012

eBay just took another giant step and is closer than ever to terminating the accounts of all small sellers... of course we will all still be welcome to purchase from eBay after our selling accounts are terminated.

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by: Ron This user has validated their user name.

Sun Aug 5 21:31:03 2012

I guess that time will tell whether this is a good strategic direction for eBay.

Personally, I'm having a very hard time understanding how eBay will retain customers, both on the buy and supply side, by simply being a referral service.  I don't see the sustainability, but I certainly do see the vulnerability.

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by: Donkey This user has validated their user name.

Sun Aug 5 22:31:53 2012

This is insane.

Takes buyers away from ebay sellers to somewhere else.
This is as stupid as the links that take ebay buyers somewhere else.

Hey you ebay idiots, if you take away all of the ebay buyers, ebay sellers will leave also and not list anything. Maybe actions like these are why ebay sellers' sales are dropping.

Never seen a company try to run off it's customers.
In case ebay reads this, ebay sellers are the ones paying all of the fees and paypal fees.

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This user has validated their user name. by: Ming the Merciless

Sun Aug 5 23:05:05 2012

Before Wall Street became the manifest cesspool that it is today courtesy of the Republican banksters and their government puppets, stocks were normally assessed based on projected long term value.

Most offered investors qwuarterly dividends and occasionally split which normally had the effect of doubling the shareholder's holdings in that stock. So the the prospect of increased share prices, dividends, and splits were the most important criteria when investing.

Not today. Mindless supercomputer buy and sell programs, day trading, repeal of oversight and paid for deregulation, and use of stock options to compensate corporate executives have changed all that.

Now it's all about the next quarter's earnings reports.

Much of ebafia executive compensation comes from stock  gifts. So the goal of this and preceeding ebay management team is and always has been about immediate, short term earnings while stealing from its customers and the its corporate future.

Ebay isn't run for the benefit of independent shareholders; it's run strictly to increase the value of the stock given management in the form  of stock options.

Ebay has made billions of dollars since 1995 and not paid so much as one penny in dividends. The stock has a history of such iunstability that no one in their right mind woulf even suggest a stock split.

Ebay has increased the number of listings at least 1000% percent since 2008 yet its stock slips and slides all over the place worth less in today's dollars than it was in 2008.

Increasing the number of listings hasn't really benefitted shareholders, but faked, bloated listing and GMV numbers have fooled or pretended to have fool the Street parrots and syncophants.

Cannibalizing is nothing new from ebay. For years, they ran ads on the site that took buyers offsite.

This should come as no shock to anyone.

They HATE us, and I for one despise them to my very core.

Just keep in mind that whatever lies (in both senses of the word) in future iut will those things that temporarily increase the value of the stock so that The Ho and his right hand seller assassin, Devil Wenig, can maxmize the value of their stock when they sell it.

They won't be around when their overall cannibalizing, fee increasing strategy fails just like it failed Negged Meg Whitman.

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by: Mr. Me This user has validated their user name.

Sun Aug 5 23:25:06 2012

another step (leap) away from the original "venue" which let individuals buy and sell to each-other

R.I.P. ebay !!!

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by: pace306 This user has validated their user name.

Sun Aug 5 23:42:25 2012

While I usually agree with ric %100, this time ... only %99 :

I dont think its about ''terminating the accounts of all small sellers'' .... simply - its about making us irrelevant.

Small sellers are a problem that eBay wants to not have to pay attention to - ie spend any kind of monies on.

1) Auctions were made redundant. eBay made them into such a problem/issue that they ''had to do something'' even though they created the issues themselves. They dont like auctions but cant totally get rid of them - so they made it so difficult and so onerous, tha people gave up and left (sellers).

But Pace doesnt eBay LOVE auctions!? They offer hundreds FREE every day - doesnt that mean they like them?

Well no - auction ''people'' caused alot of the issues that eBay wants to get rid of - mediating between buyers and sellers, VERO, CS agents etc.

Dont believe me? Let the article speak for itself! http://www.e-commercefacts.com/news/2011/09/ebay-wants-to-brush-up-it/


''Friday
16 September 2011

The e-commerce company e-Bay has indicated that it recognises it has an image problem in continuing to be thought of as an “auction site”. According to chief marketing officer, Richelle Parham, e-Bay is targeting the growing m-commerce market segment by positioning itself as an e-commerce innovator.''

2) Now its the small to medium sellers turn. Smaller to medium sellers create VERO issues, create Paypal hold complaints, ''whine'' at every SR and ''positive update'' that comes out - and eBay is tired of it.

Of course we small sellers are right - selling on eBay is like rowing a leaky boat from NYC to the south pole with only one oar - but eBAy says they are providing a selling atmosphere like the Concorde ..... I wonder which dummies still believe it.

Didnt eBay try again to give us the hint (to leave) by removing the english speaking CS agents and sending us to the Phillipens where you cant understand what they say, and the agents there know nothing about how eBay runs?

All this is the plan of Noah Hershman and all the other small minded genius's thateBay hired/hires.

Now with this same day BS, as mentioned in my post above - its all about the deals eBay and large sellers make - ones that no one here will even know. Quid pro quo - eBay makes it on the referal fees or the fvfs, the large dealers make it on further sales and saving the costs on obtaining new customers. 10k to eBay a month (or wha teven it is) is cheaper then 100k in advertising.

Im here till the ship sinks .... LOL are you ?

Perminate Link for eBay Now Same-Day Shipping Cannibalizes Marketplace Listings   eBay Now Same-Day Shipping Cannibalizes Marketplace Listings

by: Bloggo This user has validated their user name.

Mon Aug 6 00:50:11 2012

''e-Bay... an e-commerce innovator.'' That's pretty funny

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by: KEEPING A CLOSE EYE ON THEM ALL! This user has validated their user name.

Mon Aug 6 01:59:05 2012

Re: Bloggo

Yes, funny in a sick "I want to THROW UP" way, right? l.o.l.

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by: Tiffee Jasso This user has validated their user name.

Mon Aug 6 04:13:36 2012

It seems to me that both  Ebay and Amazon have been for the last several years have been discouraging regular sellers and dumping them as fast as they can. I think most of it has to do with the big conglomerate retailers do not want any competition or their items resold on the secondary market and so deals are made. The days are numbered and counting down for selling on Ebay and Amazon. When it finally happens to you, remember take your buying business elsewhere and quit feeding the cur that bit you.  

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by: Ed This user has validated their user name.

Mon Aug 6 07:31:59 2012

Now we can see why they want free shipping so it will fit into their big plan. What ebay did not see is the big box retailers are going to kick their butts because they can offer shipping from each of the 8 shipping zones and the sellers they have can only ship from one shipping zone.
This could affect seller on ebay that sell the same brands as the big box retailers when your shipping is 3 times more if you are shipping to zone 8. Shipping cost will not be very reasonable and you will lose your search due to their DSR system.

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by: Bloggo This user has validated their user name.

Mon Aug 6 09:28:15 2012

Psst, hey eBay. I can already shop at my local Radio Shack without you.

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by: Steevo This user has validated their user name.

Mon Aug 6 10:26:41 2012

I just suspect eBay is going to be mostly irrelevant at one point.  They are pushing eBay into the area of commodities and they have just no advantage at all.  

I was looking for a couple of items and the prices on eBay and Amazon are higher than at Walmart of Kohls.  

I've said it before.  Only a fool would buy mail order if the price wasn't right. For commodity items free shipping and all the other negative eBay factors has made the price just not right.

The eBay niche has been that you can find unique, unusual, hard to find things there that you *can't* find anywhere else.

Product based eBay is going to be just a complete waste of time.  It's already happened.  

Blenders with free shipping for $12 more than you can just walk into Walmart and buy it. What nut would order online? What if it doesn't work?

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This user has validated their user name. by: Anonymous Annie

Mon Aug 6 13:13:55 2012

I often purchase things on Amazon that I could pick up locally for a dollar or two less. (Typically business supplies, packing, shipping, paper, toner, ink, labels, tape, the works.)

BUT... for that dollar or two, I don't have to use any gasoline, fuss with traffic, find a parking space, hope it's in stock, stand in line, check out... yadda-yadda.

Perminate Link for eBay Now Same-Day Shipping Cannibalizes Marketplace Listings   eBay Now Same-Day Shipping Cannibalizes Marketplace Listings

by: AngelaTC This user has validated their user name.

Mon Aug 6 13:33:02 2012

" ... smaller retailers could also upload their inventory onto Milo and eBay using a new inventory management plug-in for QuickBooks."

Didn't eBay end its support for QB compatible aftersale traansaction data years ago when it killed Accounting Assistant?    In what world does it make sense to use Quickbooks to manage inventory but not the actual sales data?  

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by: amazongenius This user has validated their user name.
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Mon Aug 6 13:52:20 2012

This will quickly fade because it is almost impossible to guarantee same-day shipping. I also have to agree with the last comment from AngelaTC

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by: FCS This user has validated their user name.

Mon Aug 6 14:47:39 2012

Are you sure you mean "same day shipping" we do that every day.  Did you mean "same day delivery"?

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by: dans parts This user has validated their user name.

Mon Aug 6 15:31:02 2012

@pace
Do you have a lifeboat picked out already?  What deck? Any more room in it?  I'll also be one of the last off the sinking ship, and hoping it doesn't take me to the bottom with it, WHEN (not if) it goes.

I sure am glad my stuff is niche OOAK that B&M big boxes can't touch me.  There is simply no competition between them and me, either direction.

Just wish there were even half as many customers left as a couple years ago.  My page views the last couple months are simply pathetic.

Perminate Link for eBay Now Same-Day Shipping Cannibalizes Marketplace Listings   eBay Now Same-Day Shipping Cannibalizes Marketplace Listings

by: comet This user has validated their user name.

Mon Aug 6 23:20:06 2012

@Dans PArts---

Page Views?  What is this strange new thing of which you speak?

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