eBay’s fulfillment service, called Managed Delivery, will be a huge benefit for many sellers. Like Fulfillment by Amazon (FBA), Managed Delivery will save sellers a lot of time from having to pick, pack and ship.
This means more time can be spent on other important aspects of the business, like sourcing. We’ll go over what we know about Managed Delivery in this article.
How does Managed Delivery work?
Unlike FBA, eBay will partner with other partners in order to provide fulfillment for sellers.
Partnering with other services allows eBay to expedite the rollout for Managed Delivery and keep costs down. But having different fulfillment partners can cause some inconsistencies for sellers.
Like FBA, sellers will send their inventory to the warehouse. When the item sells, the partner fulfills the order using eBay-branded packaging.
A list of partners is not available at this time, but sellers can expect that more information about these partners as the launch date nears. More fulfillment partners will be added as the service scales up.
What are the costs?
eBay hasn’t provided a preview of the fees at the time of this article, but sellers will be able to see what the fees are closer to launch date, which is expected to be sometime next year in 2020.
eBay claims that the pricing will be competitive, so it’s likely to be similar to Amazon’s FBA pricing.
What are the benefits to sellers?
Managed Delivery appears to be modeled after Amazon’s FBA service. In fact, if you currently use FBA, then the benefits of Managed Delivery will be familiar to you.
Here’s how sellers can expect to benefit:
- Lower fulfillment costs for 1-, 2-, and 3-day delivery because of eBay’s rates
- Same seller protections that Top Rated Sellers have
- Remove neutral or negative feedback related to INAD, stock out, and INR so long as seller meets eBay’s performance metrics
- Seller protections that include customer returns that are opened, used, or damaged with ability to offer up to 50% partial refund
- Ability to report false INAD claims and receive credit for return shipping cost
- Simplified and faster shipping
- Warehouses located across the United States for faster delivery times and lower shipping costs
- Increased listing visibility
- Save on storage space
- Save on labor from having to pack and ship individual orders
- eBay-branded packaging
What are the benefits to customers?
Customers will also see some benefits from Managed Delivery.
In many ways, customers will have a much more consistent experience since eBay sellers can sometimes have poor packaging processes.
These benefits are:
- Faster delivery times with tracking
- More sellers offering free shipping
- Quality packaging
- Better customer support
eBay’s Managed Delivery service is a great way for sellers to reduce the labor related to storage and shipping. Combined with FBA, any extra costs associated with fulfillment can be offset by reducing warehouse space and labor.
But there are still some questions that aren’t addressed. For instance, FBA sellers know that mistakes happen on inbound shipping and receiving. Those mistakes can lead to lost or damaged inventory, and Amazon has a system in place for investigating and reimbursing sellers.
But with partners, who will be the one to reimburse sellers when inventory is inevitably damaged or lost at the warehouse? And how will sellers go about requesting reimbursements for mistakes?
Will fulfillment partners also be able to offer a la carte services that some sellers want? For instance, Amazon offers a label service, while other third-party fulfillment services offer packaging, inspection, and kitting for an extra fee.
Still, the ability to reduce time spent packing and shipping will be a benefit to many larger sellers even if they still have to prep inventory.
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