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Money AusPost, eBay go after Amazon with warehouse, pack and delivery tie-up

05:35  12 july  2018
05:35  12 july  2018 Source:   watoday.com.au

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Australia Post and eBay have teamed up to go head-to-head with Amazon by offering online retailers a storage, "pick and pack " and delivery service It has now struck a partnership with eBay to sign up some of the online marketplace's 40,000 Australian sellers to use the service, offering them faster and

eBay's David Ramadge and Australia Post's Ben Franzi at the Fulfilio fulfilment centre near Melbourne Airport.© Luis Enrique Ascui eBay's David Ramadge and Australia Post's Ben Franzi at the Fulfilio fulfilment centre near Melbourne Airport.

Australia Post and eBay have teamed up to go head-to-head with Amazon by offering online retailers a storage, "pick and pack" and delivery service they say will pip the newly arrived e-commerce giant on delivery times.

The postal service quietly launched a new business called Fulfilio about six months ago, which warehouses, boxes-up and then ships orders on behalf of online businesses.

It has now struck a partnership with eBay to sign up some of the online marketplace's 40,000 Australian sellers to use the service, offering them faster and more reliable delivery times than if they handled their own orders.

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Australia Post has offered fulfilment services for wholesale, or business-to-business (B2B), customers for years. But general manager of parcel and express services Ben Franzi said it needed to respond to a decline in that segment and growth in deliveries directly to consumers, driven by online shopping.

Australians' online spending grew about 19 per cent last year, according to Australia Post research, while most bricks and mortar retailers - which drive B2B deliveries - were growing 1 or 2 per cent, Mr Franzi said.

Amazon offers a similar service called Fulfilment by Amazon which launched in Australia in February, and has started stocking third-party sellers' goods in its first local warehouse in Melbourne's southeast.

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Australia Post and eBay have teamed up to go head-to-head with Amazon , aiming to pip the newly arrived e-commerce giant on delivery times. The postal service quietly launched a new business called Fulfilio about six months ago, which warehouses , boxes- up and then ships orders on behalf of online

But Mr Franzi said Australia Post's service would be faster, with warehouses in Melbourne, Sydney, Brisbane and Perth allowing for same-day deliveries.

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AusPost , eBay go after Amazon with warehouse , pack and delivery tie -uphttps://www.smh.com.au/business/companies/ auspost - ebay - go - after - amazon - with - warehouse - pack - and - delivery - tie - up -20180711-p4zqt3.html …

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“Speed is really starting to be one of the battle grounds for ecommerce, but to compete on speed you need stock close to the consumer," he said.

"Which is why that facility offer is so important, and why the pick-and-pack offer is so important in being able to compete.”

Amazon.com.au only offers next-day deliveries as its fastest option. However a second Australian warehouse, in Sydney's south west, due to open later this year is expected to improve its logistics network.

Fulfilio will also fulfil orders placed through any sales platform - eBay, a business's own website and even Amazon. Amazon meanwhile is running a trial shipping orders placed through a seller's own website.

David Ramadge, senior director of product and shipping at eBay Australia & New Zealand, said the online marketplace would not earn revenue from the Fulfilio partnership.

Speeding things up

Instead, the partnership was designed to improve the speed and reliability of its sellers' deliveries, which has been one of the company's key focuses.

It recently rolled out a "Guaranteed Delivery" pledge sellers can use to give buyers more confidence around delivery times. It has also launched eBay Plus, a subscription service giving customers unlimited free delivery on millions of items, to rival Amazon's similar Prime service.

“It’s all about coming up with solutions for our sellers which at the end of the day deliver great buying experiences for our customers," Mr Ramadge said.

More the 53 million eBay were shipped to Australian customers in the past 12 month, according to the company.

eBay sellers can register their interest in using the service, and Mr Franzi said he expected about 500 to sign up in the first year.  With the service operating out of its existing B2B fulfilment warehouses, he said there was virtually "unlimited" scope for growth.

Australia Post would not disclose the size of its investment in Fulfilio, other than saying it was "significant".

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