Ebay’s Supply Chain Just Got Better

Image via Flickr by Kazuhisa OTSUBO

Ebay hopes to make selling to overseas buyers from China more affordable and streamlined. That’s why they just partnered up with Winit Corporation, a logistics service provider in Shanghai. The two companies signed an agreement for Winit Corporation to provide eBay with supply chain services. This will facilitate faster delivery of goods from warehouses to buyers. This is something that has always been a challenge for overseas companies.Ecommerce sales from overseas have been picking up in recent years, particularly in the smartphone industry. That’s why eBay decided to form this strategic partnership with Winit. Vice Presiden John Lin of eBay said, “Through our collaboration with Winit we hope Chinese exporters can leverage the comprehensive warehousing service to play a more important role in global trade and to better connect Chinese exporters with global buyers.” More competition means better prices for buyers.

This new partnership helps Chinese sellers compete better with overseas businesses because it improves their delivery model to provide more efficient and affordable shipping. Chinese sellers can now ship their goods to warehouses overseas and then when local buyers make a purchase, the goods are shipped using a courier service. Therefore, buyers do not have to wait for shipping from overseas. They also don’t have to pay a high shipping charge.

Overseas transactions account for nearly one-quarter of eBay’s transactions. That means the new logistics partnership with Winit will have a significant impact on eBay’s delivery time. Additionally, Winit plans to expand their warehouse facilities in the next two years by building in the eastern United States. This will facilitate even faster shipping times.

Improving shipping times for overseas purchases is a good thing and will help eBay compete better with ecommerce business, particularly rival Amazon. It’s a good move for both eBay and Winit.

Leave a Reply