Is eBay Looking to Launch a Program Like Amazon Prime?
eBay is looking to offer same-day delivery service in Germany
The increasing popularity of Amazon’s (AMZN) Prime program could be prompting eBay (EBAY) to launch a similar program. According to a report from the Wall Street Journal citing local press in Germany (EWG), eBay could be testing the same-day delivery program in Germany. This is similar to what Amazon offers through its Prime program. This program will be called the “eBay+” program. Customers will have to pay about $17–$22 per year.
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In comparison, Amazon Prime is a membership program that costs $99 per year. By using this program, Amazon’s customers get free shipping on the goods they order from Amazon. Customers also get free access to a video streaming service for selected videos.
eBay is taking a similar initiative because the demand for same-day delivery of products is increasing. Consumers demand instant gratification while shopping online—regardless of high shipping costs. According to a report from Business Insider’s BI Intelligence research service, and as the above chart shows, the US same-day delivery market could grow from $0.10 billion in 2014 to $4.03 billion in 2018 at a CAGR (compound annual growth rate) of 150%.
eBay offered faster deliveries through other innovative means
This will be a change of strategy for eBay. Until now, it hasn’t considered same-day delivery of products to be essential. eBay has been serving its customers with faster deliveries through other innovative means.
eBay has partnered with Argos stores in the United Kingdom. Through this partnership, goods sold by eBay’s merchants online will be available for customers to pick up immediately at Argos stores. We covered this approach in Why eBay says “not so fast” to same-day delivery. Similarly, Google (GOOG) offered the Google Express service. It’s a same-day shopping service for orders that consumers place online from retail stores like Staples (SPLS) and Walgreens (WAG).