On Monday Amazon announced it will expand the availability of free one-day shipping to over ten million products nationwide with no minimum order requirement to its millions of Prime members in the US.
This announcement follows up on its vague promise from April when Amazon said it would invest over 800 million in the second quarter of 2019 to beef up its delivery service to cut down on delivery times.
For years Amazon led the online industry with its free two-day shipping for many products purchased on its platform by Prime members.
But as other larger retailers caught up to the free two-day service, often not even requiring a membership, the Seattle based online retailer had to up the ante.
While free one-day delivery has been a standard in the UK and many European countries, introducing this new “delivery standard” to the US will create headaches for many eCommerce retailers of all sizes.
Walmart, Target, Best Buy and other large national retailers might be able to compete at this level, but small sellers on marketplaces such as eBay will feel another burn as the two-day service will no longer be “good enough” for some buyers.
What eBay May Do To Compete With Amazon
eBay, which has been expanding to a catalog-based shopping experience, will probably have to place more emphasis on order processing time and distance to match buyers to listings.
The only way eBay can compete with next day delivery by Amazon is to match listings from sellers who can offer the fastest delivery experience.
Sellers should get ready for policy changes that will benefit sellers who can ship on the same day and who accurately list the item location.
If eBay enacts policies that forces sellers to offer faster delivery, it will get evil on seller forums.
Many tiny sellers already struggle to manage two to three-day service and requiring faster delivery times could be another existential threat to some sellers.
But does eBay as marketplace really have a choice but to again place a greater emphasis on larger sellers?
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