Dive Brief:
- eBay and FedEx Office said Tuesday they’re expanding the eBay Valet Drop-Off Program to more than 1,600 FedEx Office stores nationally.
- eBay Valet Drop-Off enables customers to bring items to a FedEx Office location, where a staffer packs them up and ships them off to an eBay Valet processing center to be listed, sold and shipped to the buyer. Once the items sell, the customer receives payment via PayPal. Sellers also receive updates and alerts throughout the selling process.
- eBay has been refining its “valet” services for years, in an effort to expand its seller and product bases by taking some of the hassle out of selling there—and generate some extra cash. During eBay Valet Drop-Off's pilot phase, eBay and FedEx Office found that most participants were first-time eBay sellers, and that electronics, high-end clothing and shoes, small appliances and antiques were the top sellers.
Dive Insight:
Earlier this year eBay CEO Devin Wenig outlined the company’s turnaround plan, predicated mostly on its shift from an auction site to more of a marketplace selling new as well as used goods, often at a fixed price. Wenig's vision involves providing shoppers with more product reviews, better search capabilities and more data and other tools to aid sellers. And, of course, it involves growth in its buyer and seller base.
In February Wenig said that one of the beauties of dealing on eBay is that it’s “friction-free,” but of course that only applies to its freewheeling, sell-almost-anything, free-market approach. It’s also an e-commerce marketplace, which means there are plenty of fulfillment headaches.
The eBay Valet Drop-off Program with FedEx evokes the host of mom-and-pop efforts synonymous with eBay’s earlier days, when people would take a cut from a seller’s final price to handle packing and shipping. Several startups (including Sold, Zaarly, YardSellr and EggDrop) tried to build their own valet-type services, but didn’t pan out.
But eBay has significant advantages here, thanks to the benefits of FedEx’s immense scale and fulfillment capabilities.
“As a pioneer in peer-to-peer selling, eBay understands that ease and flexibility are critical for consumers looking to sell online. That’s why we’re investing in solutions and offerings that streamline every stage of the selling process—from listing, to shipping, to successful sales,” Laura Chambers, eBay VP consumer selling, said in a statement. “Our relationship with FedEx Office allows us to offer even more choices to consumers looking to get the most money for their items with the least amount of work… and the peace of mind it will arrive safely.”
eBay last month beat expectations and raised its fiscal year forecast, calming investor fears that it would stumble and fall after the spinoff of its PayPal payments unit last year. For full-year 2016, eBay expects net revenue between $8.6 billion and $8.8 billion, representing growth of 3% to 5%.
