Will EBay Turn From Same-Day Delivery?

It's eBay and a few other e-retail giants that all started a hot pursuit for same-day delivery. However, eBay could be turning away from it. Yahoo Finance discussed how eBay isn't interested in the sought-after service any longer.

EBay acquired UK-based delivery start up Shutl late last year with growth plans to oversee its same-day operation, but not to perform its US city deliveries. However, in December last year, eBay pulled it's same-day service eBay Now and officially pulled eBay Now from the app store. The app allowed mobile customers to shop with it from local retailers and have their online purchases delivered same day for $5. The e-retailer was planning to integrate the stand alone app within eBay’s main mobile app and website instead. Now, eBay may have decided to pull away from same-day delivery altogether, rethinking what model really works for it.

Now, eBay has signed a deal with Woolworths in Australia, where eBay shoppers can make a purchase on its' site and then pick up the goods from Woolworths supermarkets. The article mentions how this is not the first time for eBay, partnering in a similar way with Argos in the UK. This could be a pattern to come for eBay within the US. One reason for the shift is eBay feels customers will buy in to faster delivery without paying for shipping. It also believes this model is beneficial for returning defective items directly to a physical store, instead of eBay.

The report revealed stats suggesting that customers are indeed more interested in free shipping than same-day delivery. A Harris Interactive survey of 2,241 US adults shows that 70% of consumers don't want to pay extra for overnight or same-day delivery. This could mean customers are more apt to simply go to the local store and pick it up, rather than pay to get their online purchases quicker. Shoppers without the time to pick up, can also turn to a same-day courier like A-1Express to perform same-day delivery and return items to stores for them.

Some of the best outfits for same-day delivery are physical store retailers implementing same-day delivery themselves. Wal-Mart has same-day delivery in a number of major US cities. Wal-Mart's "Wal-Mart To Go" is also in Canada. Regarding pricing to compete with heavy hitter Amazon, the retail leader even has opted to offer same-day service free in some Canadian areas to attract enough shoppers to gain a good share of the market. Macy's and Bloomingdale's have launched same-day delivery in 8 major US cities. Petco has also joined up with Instacart to perform same-day deliveries of pet items also.

Amazon has put in its' share of investment into the service. As a web-based retailer, it has built more than 50 fulfillment centers nationwide, which act as its own locations for distributing same-day. It opened its very first physical store location in Manhattan, New York last year before the holiday season. The location is being utilized for same-day delivery and online customer store pick ups. Being as close to shoppers as one can get could be the long-term objective for Amazon.

As eBay shuffles into its optimum model for quick deliveries, Google and Amazon continue to expand same-day delivery. Other physical store retailers will continue to at least test the service to see if it will pick up their sales, especially with mall retailers. A-1 Express is a Houston courier with a nationwide footprint, able to partner with any web-based or store retailer seeking after last-mile deliveries to meet their online shopper demand.

Reference: 3.9.15, Yahoo Finance, Patricia Garner, Why eBay is not interested in same-day delivery