reDesign

August 5, 2012

eBay Now offers same-day delivery from local retailers

Filed under: mobile — Rakesh Agrawal @ 7:48 pm

[Note: I will be adding screenshots. Check back in about an hour.]

eBay is trying to revolutionize local commerce. eBay’s new product, eBay Now, allows consumers to have same-day delivery of products found at local retailers. It weaves together eBay’s acquisition of Milo.com and its launch of PayPal Here in a way that makes ordering a hard drive much easier than ordering a pizza. And it arrives just as fast.

I received an invitation to an early beta of eBay Now currently under way in San Francisco. The beta includes “all eBay shoppers who have SF addresses on file and opted to receive emails,” said Lina Shustarovich, an eBay spokeswoman.

I ordered a hard drive and had it within an hour. Although services like TaskRabbit and Postmates offer variations of local delivery services, eBay Now seems focused on chain retailers. With Postmates, I can order from any business. What makes eBay Now particularly interesting (and a stronger competitor to Amazon) is that it incorporates real-time inventory data from eBay’s Milo.com acquisition. eBay has partnered with marquee local names like Nordstrom, Best Buy, Target, Macy’s and Bloomingdales.

The experience starts off with some use cases; that’s especially important in launching a new concept.

You can search by product or see items at one of the featured retailers. I placed an order for a Toshiba portable hard drive. (I figured out that my hard drive was coming from Best Buy based on the map.) This could either be an omission or it could indicate an intention for eBay to use local retailers as warehouses and own the customer relationship. If there’s substantial demand, eBay could then figure out which products it should warehouse itself and which to source from local retailers. It would make logistical and economic sense to warehouse products like iPhone batteries, condoms and beer and to use local retailers for long-tail items.

“I wouldn’t say we’re trying to use stores as warehouses,” Shustarovich said. “As you know, on ebay.com/local, RedLaser, and Milo, we send people from the Web/mobile phones and into stores to buy. eBay Now is our way of making local shopping more convenient and easier than ever before. It gives shoppers choice and another option for local.”

Placing the order was almost too easy; there was substantially less friction than most mobile apps. Within a minute or so, John had accepted my order. I could see the location of John’s car as he drove to Best Buy. The app kept me updated on the fact that he had picked up my order and was on his way. The estimated delivery time moved up and down as he made his trip.

The final leg of the delivery was longer than necessary because John didn’t have my apartment number, despite it being stored in my account. When he arrived, I paid with the PayPal Here app on his iPhone.

I didn’t receive a receipt from Best Buy; my only receipt is from eBay Now. Again, this provides for some interesting speculation on where eBay may be trying to take this.

John said he’s been working with eBay Now for about a week and has made four deliveries. He found out about eBay Now through a friend who encouraged him to apply. He had also been trained to ask me some questions about my eBay Now experience, including how I found out about it (by email) and whether I’d use it again (probably).

In this case, Best Buy’s price turned out to be the same as what Amazon is charging, $54.99. Coincidentally, while I was waiting for my hard drive, I received a shipping notice for an Amazon order I placed last Tuesday. That’s due to arrive tomorrow.

Although not incorporated in the current product, I can imagine that small businesses who use PayPal Here would have their inventory loaded into the same database. That would give small businesses a big reason to choose PayPal Here over Square.

For the beta, eBay is waiving the $5 delivery charge for the first 3 orders and also taking an additional $15 off the first order.

There were a few hiccups along the way, which is to be expected of a product this early:

  • The app didn’t have my apartment number in the correct spot. On my screen it showed up in front of the street address. According to the courier, he didn’t see it at all. Given that high density areas is where eBay Now will work best, having that fixed is critical.
  • The pricing shown in the app didn’t reflect the promotional credit, but it was correct in the final tally.
  • The first credit card I used didn’t work. There’s no reason it shouldn’t have worked.
  • The app doesn’t accept SMS. (But it is smart enough to have an auto responder to that effect.)

One other thing that is unclear: I have no idea how to return the unnecessary hard drive I just ordered. Maybe I can sell it on eBay.

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3 Comments »

  1. Hi Rakesh – Great article! I really appreciate the details you’ve put into your review especially around potential points of confusion from a customer’s point of view (receipts, returns etc.). I’ve been reading a few pieces online about ebay now and mostly it is just a step by step of what happens next. When will you be putting up screenshots? And also, do you have an invitation for sharing? I would love to try it out myself. Thanks! Christine

    Comment by Christine Pun (@ricecrispi) — August 13, 2012 @ 12:22 pm

  2. The only significant problem here is in the case of making returns or exchanges, given the e-Bay receipt, not BestBuy. That might not be a problem of course, if e-Bay has some policy in place.

    I hope e-Bay is (was?) successful with this effort. It has a negative aspect initially, of using the “big box” stores as warehouses. But if you are paying the same price as you would if you bought the product directly at the store, after deducting cost of using e-Bay for convenience, and some bulk discount to e-Bay from BestBuy presumably, then I am ALL for this. It is superior to the Amazon paradigm which has (partially, not all due to AMZN) turned my formerly busy local community into rows of shuttered BestBuy’s, Circuit City’s, Linen Warehouse, Marshall’s, even Safeway and Macy’s. The surrounding local businesses follow, exiting without replacement. They are mostly restaurants, dry cleaners, shoe stores, deli’s, exercise (aerobics) or children’s dance/ gymnastics studios, independent bookstores, Hallmark card shops, Radio Shack’s, arts & crafts stores etc. What happens to the people who lose their jobs when these stores shut down? I don’t know.

    From what I can tell, e-Bay’s strategy is a better approach than Amazon’s, on many levels. I hope they can make it work.

    Comment by Ellie K — May 7, 2013 @ 7:36 am

  3. […] night we read about eBay Now — and today we can’t stop talking about it in the office. We think it’s one of […]

    Pingback by eBay Now has got us excited | Gloo Communications — May 25, 2014 @ 5:56 pm


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