eBay to Google and Amazon: You Ain’t Seen Nothing Yet
eBay Inc. (NASDAQ:EBAY) has decided to ratchet-up the same-day delivery service competition. Google Inc. (NASDAQ:GOOG) announced on Thursday that it has started offering same-day delivery for purchases from select retailers through its new Google Shopping Express service and on the same day, eBay announced it will begin offering its eBay Now service in Chicago and Dallas this summer, according to Tech Crunch. Currently, the eBay Now same-day service is available only in New York City, San Jose, and San Francisco.
eBay Here works as a mobile app and offers same-day delivery of purchases from a number of retailers including Urban Outfitters, Toys R Us, Walgreens, Home Depot, and Target. The service charges $5 per delivery. This is not out of line with how much it costs to have a pizza delivered once tip and delivery charges are factored together.
Google Shopping Express is only available in San Francisco and the Peninsula from San Mateo to San Jose for select test customers right now. It offers free same-day delivery from participating retailers, which currently include Target, Walgreens, Staples, Toys R Us and Babies R Us, American Eagle, Office Depot, and several popular local retailers. The service will not remain free once it becomes available to the public. Instead, it is expected to be priced competitively in the $60-$70 a year range.
Meanwhile, Amazon.com’s (NASDAQ:AMZN) ”Prime” service offers free, two-day shipping on select items. It costs $79 a year and also has a couple additional perks: unlimited streaming movies and TV shows from Amazon’s library and a free Kindle book rental each month. Unlike Google and eBay’s same-day delivery services, Amazon Prime is available everywhere in the United States except U.S. territories, possessions, and protectorates (though Puerto Rico is an exception).
While Google Shopping Express and eBay Here both partner with local retailers and delivery-people to enable their same-day delivery, Amazon Prime offers its service through standard shipping methods like FedEx and UPS.
Do customers want same-day delivery from local retailers through eBay and Google or two-day delivery from Amazon.com? Either way, the consumers win. Though many smaller retailers could be hurt by these three large companies squeezing their way into traditionally physical retail distribution channels. This battle of the giants is just getting started.
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