Ebay to launch its own warehouse and fulfillment network in Amazon challenge

Ebay is poised to further ramp up its rivalry with Amazon after announcing plans to launch a warehousing and shipping service to its sellers.

Today the online marketplace said that starting next year, it will offer its sellers the option to rent warehouse space and store inventory closer to customers, leading to shorter delivery times.

READ MORE: Ebay poaches senior Amazon executive Peter Thompson amid continued transformation

This is an unmistakably similar strategy to Amazon’s “Fulfilment by Amazon” service, which has seen the online retailer build a wide-reaching global footprint of fulfilment centres, allowing it to offer rapid delivery times far outpacing rivals like Ebay, which was once far larger.

Ebay has already begun testing the “Managed Delivery” service in the Germany and the US, where Ebay customer send around 1.5 million packages every day.

“What this is not about is us trying to win a fast shipping war,” Ebay’s chief executive David Wenig told Reuters.  

“Our 182 million consumers shop on Ebay because of the value and uniqueness of our inventory. We’re not the one-hour delivery guys. We’re never going to be that, but consumer expectations are changing.”

According to Ebay 40 – 50 per cent of items will be eligible for the service, and sellers will be charged a fee for warehousing and shipping once an item is sold, and will allow them to fulfil orders placed on Ebay or other platforms.

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