EBay's App For Same-Day Gone, Could Other Retailers Fail?

There is no doubt that there is something huge behind same-day delivery, because if there was not, there wouldn't be so many consistent investments by big name retailers into it. EBay is one of the e-retailers that was hoping to strike gold with the service, pushing to make eBay Now work. However, it appears the results eBay was hoping for didn't materialize, leaving eBay to pull altogether the eBay App last week.

EBay's retooling of its' same-day delivery program is the reality that even with a high profile, heavy investments and resources, if all of the pieces of puzzle aren't there, the service will not work. No matter how much marketing and advertising is done, the costs involved with same-day delivery is what will ultimately impact the success of a company. EBay had all the components, but it came to the point where it was about the ability to grow it, versus just the establishment of it alone.

The well-known web-based retailer launched its' service in 2012 in San Francisco and grew. EBay had plans to expand into 25 other cities this year, especially after its' acquisition of delivery company Shutl. This would be eBay's link into utilizing independent couriers to perform same-day delivery for it. Therefore, a same-day courier like A-1 Express would become a partner for eBay to outsource to, depending upon the location of the service request. This happened after eBay Now showed signs of a downward spiral when the independent valets no longer were being used. The Shutl idea was set in place to reduce the delivery costs of eBay transporting itself.

Even with all of the shifts, eBay Now just didn't have the order volume to sustain itself. The question is will this happen to other retailers? EBay was charging $5 for the service, which is what many other high profile retailers are charging right now. One of the latest top retailers Macy's has joined the ranks, completely diving into same-day delivery right before the holiday shopping season began.

Formerly partnered with eBay, Macy's has now rolled out same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's rolled out the service Los Angeles, San Francisco, San Jose, and Chicago also. From Monday through Saturday, orders placed with Macy's by 1 pm, are delivered the same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.

Macy’s charge for its' service is $5 bucks as well. Experts think Macy's will work, especially with its' volume of locations to keep down delivery costs. Wal-Mart is in the same boat also, yet charges $10 for its' service, regardless of order size. Amazon offer its' Prime members same-day delivery for $5.99. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year, which has a source of partnering with physical retailers for its' same-day service. Other retailers failing with same-day delivery is yet to be seen, however, A-1 Express is a viable option for retailers to save on delivery costs. The Chicago courier is a source nationwide for same-day delivery and has the logistical expertise to help any retailer thrive.

Reference: 12.4.14, The Motley Fool, Rich Duprey, Same-Day Delivery Application Killed Off by eBay: Who Fails Next?