eBay launching its own fulfillment network Down Under to compete with Amazon

EBay is launching its own fulfilment program in Australia, allowing businesses selling through the platform to outsource storage, packing and postage of their products.

A partnership between eBay and global logistics company Orange Connex will allow the global shopping site to add fulfilment services for sellers.

In Australia, eBay is opening two fulfilment centres in Sydney, with plans to roll out more across the other major cities.

According to eBay, the service — called eBay Fulfilment by Orange Connex — will offer a streamlined delivery experience for sellers.

It will offer seller protection against delivery-related defects, including late shipment and claims that items haven’t arrived, as well as end-to-end tracking.

The service will be fully integrated into eBay and items in the fulfilment centres will automatically be eligible for ‘eBay Plus’ badging, which means they will likely be seen by more shoppers.

At the same time, the service will also allow overseas sellers to store products in Australia. Presumably Aussie sellers will be able to store products in overseas warehouses, gaining easier access to international buyers.

Postage rates will start at $4.50 for the ‘pick, pack and delivery’ service, with rates based on product weight and size.

In a statement, eBay Australia director of shipping Hayat Horma noted that housing and managing stock, as well as delivering items in tight time frames, can be extremely challenging elements of growing a business.

That’s especially true “as e-commerce continues to accelerate and consumers expect faster and more seamless experiences”, said Horma.

The move comes largely in response to demand from sellers.

An eBay survey of 211 online sellers last year found 73% believe it’s important for marketplaces to also offer fulfilment services.

The move also represents eBay taking the fight to Amazon, which has always operated on a fulfilment model, providing packing and delivery services to sellers. Amazon has, however, come under fire for the allegedly poor working conditions in its warehouses.

Australian eBay sellers are able to register their interest in the eBay fulfilment service now.