eBay's new 'Managed Delivery' aims to rival Amazon

Online retail giant eBay said on July 25 it would create its own "Managed Delivery" for sellers on its platform to better compete with Amazon and boost its brand recognition. The new service will result in "hundreds of millions of eBay-branded boxes and packages being placed on front porches across the United States within the next few years," said a statement from the California-based electronic commerce firm.

"These branded packages will not only deliver a better shopping experience for customers, but materially enhance eBay's brand identity as a popular consumer shopping destination."

The new service will allow sellers to store inventory closer to buyers in warehouses across the US, resulting in faster delivery time and lower shipping costs.

The new service will aim to compete with Amazon on "fulfillment," or the process of warehousing, packaging and delivery of products from third-party sellers.

"A common request we hear from our high-velocity sellers is to help make delivery of high-volume items easy and fast," said Devin Wenig, eBay's president and chief executive.

"Managed Delivery will be a competitively-priced logistics solution for businesses selling high-volume goods in popular categories like electronics, home and garden, and fashion. The implementation of this service will dramatically lessen the shipping burden on sellers, while improving the shopping experience and making unboxing fun for buyers."

The eBay statement said the company will manage the new service with a technology platform that allows sellers to manage their inventory.

The move by eBay comes with Amazon growing its base of third-party sellers for its Prime subscription service that offers speedy delivery, in many cases in one day.