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It does not matter if you are a high-volume seller or have just a few dozen weekly sales from your eBay activities, eBay is a fantastic sales channel and essential to your overall ecommerce success. Though the site offers sellers a number of tools that help to ensure success, where fulfillment is concerned, there are some further steps that will help you to grow your business. While some companies choose to implement the standard eBay sales model (in which the seller handles storage, packing and shipping), there are many benefits to utilize a fulfillment company instead. In this article, we are going explore the many benefits that come from using a fulfillment company and how implementing this strategy can improve your overall sales.
Before exploring the benefits and many outsourced fulfillment options available to eBay sellers, it’s important to understand what eBay itself offers for fulfillment services. Unfortunately, the answer isn’t exactly straightforward – back in 2019 eBay announced the proposed launch of eBay Managed Delivery. This program was geared towards offering a fulfillment service for eBay merchants using national fulfillment partners. These fulfillment partners would receive, store, and ship orders on behalf of sellers. However, while the company hasn’t officially rolled back this announcement, eBay also hasn’t formally rolled it out either, leaving merchants guessing whether eBay really intends to launch a fulfillment network similar to Amazon.
Further complicating the scenario is that eBay has announced the launch of similar fulfillment programs in Germany via Orange Connex and more recently in Australia using the same Orange Connex platform. Orange Connex operates its own fulfillment centers and provides fulfillment services for eBay merchants in Germany and Australia. Perhaps eBay will be rolling out something similar in the US – and because they haven’t formally rolled back the Managed Delivery program, merchants may still have an eBay fulfillment option at their disposal in the near future.
But as for now, the answer to the question for US merchants is “no.”
Quite frankly, using a 3PL service is a better solution for eBay vendors as it changes the dynamics of diversification back under their control. By choosing a 3PL, vendors have a say in fulfillment distribution warehouse locations, speed of service, and cost of services like free shipping, tracking, and returns on their terms.
Further, using a 3PL allows sellers to build a profitable relationship with a personalized business partner.
In terms of fulfillment of orders placed on your eBay store, there are options that include eBay’s own fulfillment center as well as other private services. The latter are often called third party fulfillment, and many of them focus in on helping fulfill e-commerce orders. A fulfillment company is just as it sounds – a company that manages your inventory, packages it for shipping, and gets it to the buyer. And while it might seem that handing over control of so much of the actual business is unwise, it actually works in the opposite direction – giving you time to focus on growing the business and really leveraging what eBay business you already have.
It would look like this: You have your products shipped to the fulfillment center’s warehouse or storage facilities. They handle inventory management and tracking, accept orders as they are received through your eBay (and other ecommerce) accounts, pick and package the products accordingly (and per your preferences, which can mean inserting specific documentation, sales materials, and so on), and ship it promptly.
Naturally, there are greater benefits to be gained by using fulfillment services as part of your eBay ecommerce business as opposed to self-fulfillment. They include:
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