eBay Germany testing subscription scheme
eBay is testing a customer loyalty programme in part of Germany that has been likened to Amazon’s Prime, in that it offers buyers faster deliveries and free returns on items for an annual fee. The company’s German division is testing the system with a select number of sellers before opening it to the public. Assuming the trial is successful, eBay could roll out the programme more widely in the second half of this year.
In an interview with TheStreet.com, eBay Germany’s director of communications Maike Fuest said that the progamme will enable sellers to establish strong links with their existing customers, and attract new ones. In order to maintain their ranking as a “top rated seller”, sellers will have to ship products quickly and offer free returns for the month following a purchase.
The seller will be responsible for ensuring that a package is despatched on the same day that the order is placed (if payment is received before the cut-off time) but – according to TheStreet.com – Fuest did not specify if there was a requirement for when the package should arrive.
The page on eBay’s German website which announced the new service includes a Q+A section which states (in German) that seller should send the item on the same day, and “select a delivery method in which the item usually arrives the next day.”
The eBay system will entail a lower annual subscription than Amazon Prime. Reports have indicated that it will be in the range of €15 -€20 ($17-$22).
But Amazon does come with added benefits, like streaming movies and TV programmes.
Most importantly, Amazon has direct control over how its products are stored and shipped, which it gives a significant advantage in achieving the next-day delivery target.
In contrast, eBay will have to rely on its sellers, and the delivery companies with whom the sellers choose to work.
In order to encourage sellers to participate in the programme, and meet the fast delivery targets and free returns policy, eBay said that “products that qualify for the programme will be specially marked and highlighted in the [buyer’s] search” and “eBay will bear part of the costs for the return of articles”.
