eBay Now: eBay's Same-Day Delivery Service

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : OPER110 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

E-commerce/ Supply Chain Management/ Logistics

Case Length : 18 pages
Period : 2010-2013
Organization : eBay
Pub Date : 2013
Teaching Note : Not Available
Countries : US; Global
Industry : E-commerce

Abstract:

This case discusses eBay’s business model and its supply chain and goes on to describe its ambitious same-day delivery service. In 2012, eBay started its same-day delivery service, eBay Now shortly after its rival Amazon announced its same-day delivery service. Initially started in select cities in the US, the eBay Now shopping application could be downloaded to the user’s Apple iPhones and iPads. Once the customer ordered the product, it was delivered within an hour by an eBay valet. On October 10, 2012, the service was made available to all the residents of San Francisco and was later extended to various other cities.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Unlike Amazon, which threatened the existence of local retailers, eBay aggregated local individual retailers/mom-and-pop stores/retail chains and offered them a platform to sell their merchandise with the advantage of same-hour delivery. While there was a location advantage for eBay, it had to employ couriers to make individual deliveries. It also faced competition from well established retailers and many start-ups that imitated its business model. Moreover, operating a same-day delivery service was fraught with various risks and challenges and could snowball into a logistical nightmare for eBay. This case is meant for MBA students as a part of the E-commerce/ Supply Chain Management/ Operations Management courses.

Issues:

Understand the concept of e-commerce, its growth, and its impact on traditional retail.
Understand the logistics and supply chain management of retail and e-commerce businesses.
Understand eBay’s e-commerce strategies and its same-day delivery service.
Analyze the pros and cons of same-day delivery vis--vis regular delivery.
Analyze the impact of eBay’s same day delivery on other online and physical stores.
Identify the challenges faced by eBay in operating its same-day delivery service and explore ways in which it can make it a success.

Contents:

  Page No.
Introduction 1
Global E-Commerce Industry 1
eBay.com 2
The Business Model 3
Supply Chain Management of eBay 5
'eBay Now' Same-Day Delivery 7
Growing Competition 8
Challenges for eBay 10
Can eBay Pull it off? 11
Exhibits 12

Keywords:

E-commerce; Supply chain; Supply chain management; Logistics; Same-Day delivery model; business model; online and offline retail; ebay; Amazon; Wal-Mart; eBay Now

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