eBay Fulfillment: How Fast Shipping Helps You Grow | Cahoot

Fulfillment is often an afterthought for sellers – after all, “sellers” want to sell. Your eBay fulfillment strategy, though, has a much bigger impact on sales than you might realize. Utilizing an eBay Fulfillment Center, a comprehensive third-party logistics provider, can streamline order processing, manage inventory, and ensure timely deliveries, significantly enhancing customer satisfaction and business performance. If you’re not offering fast and free shipping, you’re severely limiting your growth. And if you don’t have the right provider, you’ll pay an arm and a leg for that shipping, eating up precious profits.

In this article, we’ll highlight the importance of fast and free shipping on eBay (if you’re not already convinced) and give a primer on your different options for eBay fulfillment. By the end, you’ll feel much more confident in your ability to turn operations into a growth driver for your business.

What is eBay Fulfillment?

eBay Fulfillment is a comprehensive service designed to help sellers outsource their order fulfillment processes to a trusted third-party logistics provider. This service allows sellers to focus on growing their business while leaving the logistics and shipping to a reliable partner. eBay Fulfillment centers offer a range of services, including storage, packing, and shipping, ensuring that orders are fulfilled quickly and efficiently. By leveraging an eBay Fulfillment service, sellers can significantly improve customer satisfaction, reduce shipping costs, and increase their overall profitability. With streamlined fulfillment processes, sellers can ensure that their customers receive their orders on time, every time.

Why is Fast and Free Shipping Important for eBay Fulfillment?

Online Shoppers Want Fast and Free Shipping

Thanks to Amazon Prime, online shoppers now expect their orders to arrive quickly and for free. In fact, a McKinsey study found that over 90% of customers view 2- to 3-day delivery as the baseline for eCommerce. eBay sellers used to be relatively immune from these rising customer expectations, but those days are over.

Ignore fast and free shipping at your own risk – US consumers expect free shipping even on orders under $50, and 48% of all cart abandonment is caused by unexpected shipping costs.

eBay now automatically applies “Free delivery in 2/3/4 days” tags to qualifying products – like the Fast ‘N Free badge that preceded it, this marker gives shoppers exactly what they want. eBay sellers with the tags stand out in search results and convert better, driving higher revenue by leveraging efficient shipping services that enhance order processing and customer satisfaction.

Improve your Seller Rating

Fast and free shipping is a key rating factor that can help to boost your eBay seller rating. Shipping time and shipping fees both have their own line item in “Detailed seller ratings” on eBay, and of course, a high seller rating has a huge impact on eBay sales. Having a reliable fulfillment partner is crucial for effectively managing shipping and logistics, ensuring timely delivery and high service standards.

Furthermore, qualification for the lucrative Top Rated Seller Program depends in part on fast shipping – so if you want to be in the top echelon of eBay sellers, you’re going to need fast and free shipping.

Increase Impressions

Free shipping helps you win more impressions and clicks on the eBay marketplace by providing actionable tips for sellers.

eBay gives users the ability to filter by “Free shipping”, meaning that if you’re charging for shipping, some buyers are completely excluding you from consideration. Even if they don’t filter out “Free shipping”, many others will sort their search results by “Price + Shipping” – that’s right; eBay’s price sort includes the cost of shipping, so if you undercut your competitor on product price, but have a shipping fee, you’ll still lose out.

On top of that, eBay prominently writes “Free shipping” for products that don’t charge for shipping, making them stand out against others that come with hefty shipping fees.

The combination of filters, sorts, and “Free shipping” copy all combine to make it an excellent way to boost your search page results on eBay.

Lower Cart Abandonment and Boost Conversion Rate

The impact of fast and free shipping isn’t limited to the product search experience. In truth, it makes the biggest difference once customers are on the product page itself. Consider that unexpected costs at checkout, including shipping, are the number one cause of abandoned carts, causing 48% of all shoppers to abandon.

Consumer preferences are clear – they convert more often and abandon their shopping cart less frequently when they’re offered free shipping. Effectively managing and fulfilling orders enhances efficiency in eCommerce, ensuring that customers receive their products quickly and reliably.

Improve Customer Lifetime Value

Shoppers will often go the extra mile for free shipping, which opens up creative strategies to boost your repeat purchase and retention rates.

Invesp found that 58% of customers will add items to a cart to qualify for free shipping, 47% will search for an online promo code, and 31% will join a loyalty program.

If you don’t want to offer free shipping right off the bat, then you can introduce an order value minimum or offer free shipping to people that sign up for a loyalty program. Both of these actions will improve your customer lifetime value – bigger carts are self-explanatory, and loyalty program members repeat shop again and again. An effective fulfillment strategy is essential for operating a profitable business, ensuring customer satisfaction and efficiency.

Overview of Options for eBay Fulfillment Services

So, you’re convinced – you want to offer fast and free shipping on eBay. But how do you do it without breaking the bank? Here are the pros and cons for the different ways you can fulfill orders.

eBay’s managed delivery service is an efficient logistics solution designed for sellers with high-volume inventory, aiming to provide faster delivery while reducing costs and complexities associated with order fulfillment.

Self fulfillment

eBay allows you to ship your items yourself. With in-house fulfillment, you own the process, the profits, and the risks.

The benefit, of course, is that you have full control over the fulfillment process. You can choose where and how your products are stored, ensuring that they’re in the best condition possible when they get to customers. If there are errors in fulfillment, you have the power to immediately fix issues.

The main drawbacks of self-fulfillment are that it’s extremely time-consuming and it isn’t cost-effective in the long run. If you’re fulfilling your own orders, your success comes with a price – more and more of your time will be consumed by managing operations.

If you’d like to learn more about how to go it alone, here’s a more in-depth look at how to offer free shipping and still make a profit.

Local pickup

This eBay fulfillment option is ideal if you sell large or bulky items. It allows you to arrange pickup with the buyer so you can avoid shipping costs and price your items even cheaper.

You’ll need to provide a ZIP code, at least one electronic payment method (in addition to Pay on pickup), customer service, and generate your Proof of pickup to protect yourself in case of “item not received” disputes.

Of course, local pickup limits your market to your locality or contiguous areas. Sellers with serious growth ambitions will need to combine local pickup with another fulfillment option.

Drop shipping

eBay sellers can also use drop shipping to fulfill orders directly from a wholesale supplier. Under this arrangement, your supplier will deliver orders directly to your customers.

Your supplier handles the entire fulfillment process on your behalf using the buyer information available to them. It’s simple and will dramatically reduce your overhead compared to self fulfillment. However, your customers will still hold you responsible for timely delivery and overall customer satisfaction. If the dropshipper makes a mistake, you’re the one that pays the price.

For quality, you don’t get to inspect the product before it gets to the customer. You have to rely entirely on the dropshipper, and when things go wrong, you’re left on the outside looking in.

Just as importantly, your customers won’t be delighted by fulfillment provided by dropshippers. Since they’re almost always shipping from one location, the delivery won’t be fast for customers across the country – and as we explained above, that’s a critical piece of modern eCommerce. Since they’re often shipping long distances, the shipping is more expensive than it needs to be as well.

If you choose this option, don’t list an item on eBay and then purchase it from another retailer or marketplace that ships directly to your customer. If you do, you’ll face sanctions ranging from listing cancellations to forfeiture of fees paid or payable to your account.

3PL fulfillment

If you’re looking for a fulfillment service that offers the benefits of self-fulfillment without all the hassle, then using a third-party provider is your best bet.

The best 3PLs will give you access to a nationwide network of warehouses and carriers, so shipping products will take less time than if you were going it alone – in most cases within one or two days. Furthermore, if a 3PL places your inventory across the country strategically, you’ll always pay ground rates for shipping, so fast delivery will come at low prices.

Like dropshipping, trusting a third party means giving up some control over your product before it gets to the customer. This challenge can become apparent with 3PLs that aren’t built for eCommerce, as products get damaged in their rush to fulfill orders. Modern 3PL networks that specialize in eCommerce, though, have very low defect rates and may even improve on your own delivery record. Multi channel fulfillment is also crucial, as it allows integration with multiple sales channels for efficient order management.

This can introduce complexity and increase your handling fees. A 3PL Request for Proposal can help you to weigh your options.

Choosing the Right Fulfillment Service

Choosing the right fulfillment service is crucial for eBay sellers who want to ensure that their orders are fulfilled efficiently and effectively. When selecting a fulfillment service, sellers should consider several key factors. First, evaluate the service’s reputation and reliability to ensure that it can consistently meet your fulfillment needs. Cost is another important consideration; look for a service that offers competitive pricing without compromising on quality. Additionally, seek out a fulfillment service that provides real-time inventory management, automated order tracking, and flexible shipping options. It’s also essential to consider the service’s ability to handle international shipping and its integration with the eBay platform. By choosing the right fulfillment service, sellers can enhance customer satisfaction, reduce shipping costs, and boost their overall profitability.

International Shipping and eBay Fulfillment

International shipping is a critical aspect of eBay fulfillment, as many sellers cater to customers around the globe. When choosing a fulfillment service, it’s important to find a provider that offers reliable and cost-effective international shipping options. A good fulfillment service should be capable of handling customs clearance, duties, and taxes, while also providing tracking and insurance options for international shipments. Additionally, the service should offer real-time updates on the status of international shipments, allowing sellers to keep their customers informed every step of the way. By using a fulfillment service that excels in international shipping, sellers can expand their customer base and increase their sales, all while ensuring a smooth and reliable delivery experience.

Inventory Management and eBay Fulfillment

Effective inventory management is a cornerstone of successful eBay fulfillment, ensuring that sellers have the right products in stock to meet customer demand. A top-notch fulfillment service should offer real-time inventory management, allowing sellers to track their stock levels accurately and avoid issues like overselling or underselling. The service should also provide automated alerts when stock levels are low, enabling sellers to replenish their inventory promptly. Additionally, a good fulfillment service will handle inventory storage, receiving, and picking, freeing up sellers to focus on growing their business. By utilizing a fulfillment service with robust inventory management capabilities, sellers can enhance customer satisfaction and reduce shipping costs, ultimately driving their business’s success.

Why Cahoot Is the Best Option for eBay Fulfillment

Cahoot’s eBay fulfillment service will power affordable fast and free shipping for your listings, increasing revenue and margin. Our best-in-class fulfillment network partners with eBay sellers to make fulfillment a breeze – we can get you up-and-running with an improved delivery experience in as little time as it takes you to send us inventory.

With Cahoot, your eBay store can integrate various fulfillment services directly, automating order processing, inventory management, and shipping logistics. Your listings will automatically get eBay 2-day, 3-day, and 4-day fast shipping tags (formerly Fast N’ Free Shipping), boosting conversion.

If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how fulfillment can power your growth on eBay.

Frequently Asked Questions

What is eBay fulfillment?

eBay Fulfillment refers to eBay’s logistics solutions that help sellers store, pack, and ship their products efficiently. Unlike Amazon’s Fulfillment by Amazon (FBA), eBay does not directly handle fulfillment but partners with third-party logistics providers to offer these services. One of the main programs currently available is eBay Fulfillment by Orange Connex, which provides warehousing, order fulfillment, and fast shipping options for eBay sellers.

Is selling on eBay worth it?

Selling on eBay can be worth it, but it depends on your business model, product type, and goals. eBay offers access to a massive global customer base, and (unlike Amazon) allows for both fixed-price listings and auction-style sales, which can help sellers move inventory quickly or get the best price for rare items. Fees are generally lower than Amazon’s, and there are fewer restrictions on the types of products you can sell.

However, there are challenges. eBay is highly competitive, with many sellers offering similar products, often at low margins. The platform has strict policies on seller performance, and negative feedback can impact sales. If you’re selling high-demand products and can manage fulfillment efficiently, eBay can be a profitable marketplace. However, if you’re looking for a fully automated fulfillment solution like Amazon FBA, eBay may require more hands-on effort.

How much does eBay make on each sale? (eBay fees)

Selling on eBay involves several fees that sellers should be aware of to manage their costs effectively. The primary fees include insertion fees and final value fees.

Insertion Fees: eBay allows sellers to list up to 250 items per month without incurring insertion fees. Beyond this allowance, each additional listing typically costs $0.35. However, certain categories may have different fee structures or exceptions.

Final Value Fees: When an item sells, eBay charges a final value fee, which is a percentage of the total sale amount, including shipping and handling. For most categories, this fee is 13.25% of the sale price up to $7,500 per item, and 2.35% on the portion of the sale over $7,500.

Can I sell on both Amazon and eBay?

Yes, you can sell on both Amazon and eBay at the same time. Many e-commerce sellers choose to list their products on both platforms to expand their reach and maximize sales. However, managing inventory, pricing, and fulfillment across two marketplaces requires strategic planning.

What is the best way to fulfill eBay orders?

The best way to fulfill eBay orders depends on your business size, volume, and resources. Options include self-fulfillment, local pickup, drop shipping, and using a third-party logistics (3PL) provider. Each method has its pros and cons, and the right choice will depend on your specific needs and goals.

How can I improve my eBay seller rating?

Improving your eBay seller rating involves several key factors, including providing fast and free shipping, maintaining accurate listings, offering excellent customer service, and promptly addressing any issues or disputes. Utilizing a reliable fulfillment service can help ensure timely deliveries and enhance customer satisfaction, which in turn can boost your seller rating.

What are the benefits of using a 3PL for eBay fulfillment?

Using a third-party logistics (3PL) provider for eBay fulfillment offers several benefits, including access to a nationwide network of warehouses and carriers, reduced shipping times and costs, and the ability to scale your operations without the need for significant investment in infrastructure. A 3PL can also handle inventory management, order processing, and shipping logistics, allowing you to focus on growing your business.

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