Can Guaranteed Three-Day Delivery Drive Sales For eBay ?

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As eBay (NASDAQ:EBAY) looks to compete better with established e-commerce players such as Amazon, it is now ensuring that its shipping policies match up with these players. eBay recently announced a three-day guaranteed delivery program in the U.S., in a move to compete with Amazon’s popular Prime service. While most sellers on eBay’s platform already offer fast delivery, the company has now introduced a tool for sellers which will allow them to highlight the three-day guaranteed delivery. If products are not delivered by the guaranteed time, eBay – along with the seller – will either refund the shipping charges or provide an eBay voucher to the buyer.

Fast and reliable delivery is of paramount importance in the current e-commerce environment, as evidenced by the popularity of Amazon Prime (though Amazon’s video streaming service contributes to the popularity as well).  eBay’s new program will allow buyers to sort products based on their delivery dates and give sellers an option to market their products by providing guaranteed delivery. Depending on the success of the feature’s rollout, it could help eBay expand its user base, which is a key valuation driver for the company.

As the e-commerce battle shifts to faster and guaranteed delivery times, with cheap prices no longer being the only thing customers look for, eBay’s efforts in this direction should attract customers. In the long term, this should make eBay more competitive and drive sales.

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