Friday, Mar. 28, 2014, 5:03 PM
By Sarah Rubenoff
AUSTIN, Texas – An agreement between online shipping marketplace uShip and eBay Inc. has the potential to make it easier for dealers to reach out-of-area and out-of-state vehicle buyers quicker and with less hassle.
Announced in early March, uShip-powered delivery options will be incorporated across eBay categories that frequently contain larger-than-parcel goods over 150 pounds and buyer-arranged shipping.
Initially available in eBay Motors’ U.S. vehicles, motorcycles, powersports and boats, more categories will be added this spring, the companies shared.
Within a year, uShip will be integrated into global eBay properties, more deeply into listings and in the buyer checkout process.
Since 2007, 93,000 users have linked their eBay accounts with uShip, which has seen over 560,000 eBay items valued at $712 million listed for shipping.
To date, total shipping cost of eBay goods on uShip is nearly $75 million, about 15 percent of uShip’s all-time total shipping volume of $500 million, the company shared.
And with three out of every four vehicles bought on eBay being sold to out-of-state buyers, according to uShip, clearly, transport is a front-and-center issue.
“uShip’s agreement with eBay is a natural fit for several reasons,” said Matt Chasen, chief executive officer and founder of uShip. “First, we’ve spent the last 10 years pioneering collaborative consumption and building a global network of more than 500,000 registered carriers that can handle LTP (larger-than-parcel) specialty shipments, whether that’s vehicles, heavy equipment, household goods, traditional freight or the truly unusual.”
“Second, eBay users are very familiar with uShip’s eBay-like feedback system, which helps them choose a carrier from among those with an average score greater than 97 percent positive. And finally, price — eBay buyers have saved $20 million in shipping costs through uShip. For transporter service providers on uShip, this translates into more opportunity with extremely high-intent shipping customers,” said Chasen.
Ever since uShip launched in 2004, the company explained eBay buyers and sellers “have organically gravitated” toward using the company to ship larger-than-parcel items.
“Given this natural synergy, we’ve had frequent and ongoing discussions with the eBay team over the last 10 years. In Feb. 2011, we began appearing as one of several shipping options of eBay Motors listings,” said Dean Xeros, vice president and general manager, uShip Motors & Relocation. “However, the relationship just announced not only makes us the preferred provider in the tab in eBay Motors but goes far broader than that, including more categories, global integration, more deeply placed into listings and in the buyer checkout process.”
Ebay leadership also commented on the agreement and how it will affect the automotive space:
“As one of the largest online marketplaces for all things automotive, we aim to provide a complete lifecycle of services for vehicles from purchase to delivery,” said Bryan Murphy, head of eBay Motors. “Our work with uShip allows consumers the flexibility to evaluate transporters and select the delivery option that works best for their needs.”
What It Means for Dealers
To gain insight into how this agreement will impact dealers and their customers, Auto Remarketing chatted with uShip leadership about potential benefits for auto buyers and sellers.
“Many dealers list their vehicles on eBay Motors to market their inventory, so naturally they receive a lot of interest from out-of-area buyers who want to know shipping cost in order to gauge total purchase price,” Xeros said.
With the new agreement, potential buyers have a front-line view of shipping costs with uShip’s instantly-bookable rates.
“uShip gives auto dealers greater ability to ship anywhere their buyers are located. In other words, ‘anywhere’ is the new local,” Xeros added.
Another tool that will help buyers looking at vehicle inventory on eBay and perhaps make them more likely to purchase is the shipping tabs that are now available through the uShip partnership.
“Buyers can make an informed buying decision and total purchase price because immediately-bookable rates from feedback-rated carriers are available within the shipping tab on the eBay listing itself. They don’t need to search for rates online or make a bunch of phone calls,” said Xeros. “With uShip, when carriers compete against each other for business, this drives affordable pricing and helps increase conversion on eBay Motors.”
The new partnership also has the potential to push transport prices down.
“Just like the eBay marketplace creates competition for various items of all shape and sizes, the uShip marketplace creates a competitive environment around shipping services. There’s one big difference, however: within eBay’s auction format, bidding drives prices up,” said Xeros. “Within uShip’s auction format, bidding drives prices down.”
The bottom line is the better dealers are able to source, the better they are able to sell, Xeros pointed out.
“Dealers are faced with the same situation when it comes to sourcing inbound inventory from auction houses, trades or other sources — and need a cost-effective transportation option,” he said.
In other words, as simple, convenient, transportation solutions become more and more prevalent, “dealers will have a much more cost-effective way to manage their inbound inventory,” Xeros concluded.
See original story here.