Online retail giant eBay announced it was changing the face of retail logistics with its eBay Now local shopping and delivery service. Merchant accounts that partner with eBay will be able to have their products shipped from physical stores and delivered to nearby customers in as fast as one hour using eBay's new same day shipping service, according to Supply Chain Digest.
Retailers that have signed up for the service include Best Buy, Home Depot and Macy's. After its beginnings as a test for select cities Manhattan, San Jose and San Francisco, the company made its delivery program available to metropolitan areas surrounding those test sites, including Brooklyn and Queens. It plans to expand to the Midwest in Chicago and Dallas.
"The strategy can almost be seen as a hybrid between what Amazon.com is doing versus Walmart and Macy's," Supply Chain Digest noted.
Similar to Amazon's strategy, by having eBay distribution centers (DCs) centered around major, populated areas such as New York's boroughs and the San Francisco Peninsula, eBay can delivery goods from store to customer faster.
"As we've seen mobile really take off at the consumer level it is really blurring the lines between offline and online commerce," said Dane Glasgow, vice president of mobile and local at eBay. "The fact that you always have a connected device with you is having a huge influence on how people shop and buy, both at home and when they're out on the street."
For eBay's same day delivery service, shoppers can view the stock of retail stores around their location through GPS detection on their mobile device, IP address or shipping addresses listed on their eBay accounts. The page for eBay Now describes charging customers who wish to order from brick and mortar retailers $5 per store when their order totals a minimum of $25.