eBay optimizes delivery service with new platform

Leading e-commerce retailer eBay Korea said Monday the company was creating synergies by integrating its independent “Smile delivery” service with its fulfillment platform.

The retail giant said Monday its Smile delivery service has been able to benefit both sellers and buyers through its optimized fulfillment platform, which uses the same system as Amazon’s fulfillment services.

“Typical fulfillment platforms charge businesses by the size of space allocated for stocking their items in the warehouse, which creates fixed storage costs. However, eBay’s smile delivery service charges businesses depending on how much costs have been incurred in the management and delivery of each item, which allows businesses to pay for exactly how much they use the service,” an eBay official said.

Also, the smile delivery service processes payments of items to businesses the very next day, giving more financial room for business clients.

Customers can also benefit when they use the smile delivery service as they can order different items at one fulfillment center without having to pay shipment fees multiple times.

The company’s fulfillment center in Dongtan, southeast Gyeonggi Province, has been running in full throttle since the start of this year, connecting customers with online retailers such as Gmarket and Auction, both of which are operated by eBay.

EBay’s Smile delivery has seen 111 percent growth in its transactions between January and February this year compared to the previous year.

By Kim Byung-wook (kbw@heraldcorp.com)