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August 30, 2019 Friday 10:53:11 AM IST

eBay planning new shipping service

eBay is launching a service to deliver orders more quickly and cheaply. The company's latest effort is intended to be more appealing to shoppers and sellers as well as compete with Amazon.com.

eBay isn't planning to build its own warehouse network like Amazon. Instead, it will use the collective volume of its sellers - about 1.5 million packages a day in the US - to negotiate discounts with logistics partners. The goal is to let eBay merchants store inventory in warehouses around the US so that products can be delivered in two or three days at competitive rates. eBay plans to roll out its ‘Managed Delivery’ service in 2020 and will run it on behalf of merchants through its own technology platform.

The new service will be cheaper than Amazon's, and eBay will take responsibility for products lost or damaged in shipping, which is currently the seller's responsibility.