Tuesday, October 8, 2013

Omni-Channel Logistics: eBay's Secret Weapon ?



Amazon & eBay: 2 companies that compete against each other but have remarkably different ways of going about it.
Long strategy short: - Amazon is perceived to be trying to dominate the retail space and kill the brick & mortar stores but on the other hand eBay is trying to use and empower the brick & mortar stores.
eBay and other retailers have realized that it is almost futile to replicate Amazon's infrastructure and fulfillment system due to which the average delivery miles per order is less than 80 miles. They are now looking towards Omni-Channel Logistics.  


As evidenced by the article, Walmart and other leading retailers are shifting towards BOPIS (Buy online, Pick up in store) and ship from store.
So, where does eBay fit in the picture ? eBay NOW !!
eBay has started to gradually roll out this service outside of San Francisco and Bay area. It has already received rave reviews and is touted as eBay's answer to Amazon lockers and same-day delivery.
With a 1-hour delivery window and initial $15 promotional coupons, eBay is hoping to eventually utilize the already existing 8,000+ retail stores within a few miles of majority of the US population.
To top it off, eBay recently acquired Decide.com. This startup was known for collecting data on past sales,deal and prices and recommend the best time to buy an electronic gadget.Now eBay has all this data and has shut down Decide.com's services. Why this might matter ?


So now eBay can inform you of the next flash 3-hour sale/Black Friday at Best Buy or Target and also which product will be the best bang for your buck. AND, if you are stuck in office or even worse - in a classroom, you can always use eBay NOW to get it delivered wherever you are !!

So what's next ?
As per the recent 2013 Cross-Channel Retail Executive Summit, one of the major insights was the remarkable increase in demand for customized products.
What if you need a pair of jeans urgently but you always have to get the length altered or the jeans customized in some way ?
This is where Omni-Channel commerce would be more useful than Amazon. You could place an order through eBay NOW or another app and get your customized product delivered within hours.

However, what if the product customization requested takes longer ? This might be because the product needs to be customized while being manufactured.
Here is where Amazon can theoretically bridge the gap since the delivery time will be the same.

This is just 1 use case. What others can you guys think of ?
What other pitfalls or benefits do you see with Omni-Channle logistics?
Can it actually pose a serious threat to Amazon ?

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