EBAY is also one of my new favorites...good news item today.....eBay Plans Industry's First
Online Auction Shipping
Services with Mail Boxes Etc.
and iShip.com
By James Hollander & Andy Wang
E-Commerce Times
April 12, 1999
There was good news for
online auction buyers and
sellers on Monday, as eBay
(Nasdaq: EBAY) announced
plans for two new deals
which will integrate product
shipping capabilities directly into eBay's popular
Internet-based auction Web site. eBay chose
Mail Boxes Etc. (MBE), which is reportedly the
world's largest franchisor of packing and
shipping services, and iShip.com, a leading
provider of multi-carrier Web-based shipping
services for e-commerce, to provide eBay
members with a first-of-its-kind, integrated
system for e-commerce shipping.
The new alliance plans on developing a system
to inform buyers of the shipping costs
associated with their purchases, even before
they place their bids. The network of
participating MBE centers nationwide will
provide convenient drop-off and pick-up
locations for e-commerce shipments, while
instant package status information will enable
sellers and buyers to track the exact location
of the goods during transit.
Industry Impact
This announcement is significant because it
could foreshadow a trend towards end-to-end
integration of e-commerce services in the
online auction industry, which has seen
remarkable user and investment growth in the
past year.
"As the volume of e-commerce increases,
shipping solutions that bridge the Web and the
physical world become critical," said James
Amos, MBE president and CEO.
Despite its legal troubles, eBay is arguably the
Internet's top online auction site. This
arrangement with MBE and iShip could raise the
bar in the industry even higher, in terms of
providing value-added services to auction
participants. For this reason, we expect to
hear similar announcements in the near future
from other major online auction players like
Bid.com, Yahoo! Actions and newcomer
Amazon.com Auctions.
"The growth of eBay's person-to-person online
trading has created a demand for improved
shipping solutions for our community of 2.1
million users," said Meg Whitman, president and
chief executive officer of eBay.
Under the planned agreement, iShip.com will provide information to
eBay sellers and buyers regarding shipping costs and options, helping
reduce the need for frequent e-mails to work out terms of shipping.
MBE will offer eBay sellers and buyers the brick-and-mortar
infrastructure for packing and shipping. In addition, eBay and MBE
expect to implement a "hold for inspection" program where MBE
franchisees will provide a place for delivery and inspection of goods.
About Mail Boxes Etc. and iShip.com
Mail Boxes Etc., a wholly owned subsidiary of U.S. Office Products
(Nasdaq: OFIS), is the world's largest franchiser of retail business,
communications and postal service centers. Mail Boxes Etc. operates
3,700 shipping centers worldwide. Parent company U.S. Office
Products is a North American provider of office supplies, office
furniture, and office coffee and breakroom products.
iShip.com is a privately held company that helps buyers and sellers
price and ship products. Founded in 1997, iShip.com now operates a
Web site that provides shipping rates for Airborne Express, Federal
Express, United Parcel Service, and the United States Postal Service.
Based in Bellevue, Washington, the company has an impressive list of
investors including Intel, United Parcel Service, and the venture
capital firm of Draper, Fisher, Jurvetson.
Stock Impact
Shares of U.S. Office Products (Nasdaq: OFIS) were on a tear in early
trading today after the news, climbing more than 50 percent, up two
points to 5-7/8.
eBay stock, meanwhile, has regained all the losses that began when
Amazon.com recently announced the launch of its new auction site.
Shares of eBay were up as much as 10-11/16 to 194-1/6 in early
trading today, hovering around an all-time high. The highest the stock
has ever closed is 191.
It's been quite a two-day run for eBay stock, which closed up 11-5/8
to 183-3/8 on Friday.
Related News
In related news on Monday, Yahoo! Auctions, eBay, LiveBid.com,
Amazon.com Auctions, and other Internet auction sites announced
that they will join together to raise funds to aid the Kosovo refugees.
The participating Internet companies will auction off donated items,
collectibles and memorabilia, and/or enable all online sellers and
visitors to make donations to the American Red Cross relief efforts to
meet the emergency humanitarian needs of refugees fleeing from
Kosovo. All proceeds raised will reportedly go directly to the American
Red Cross.
"We applaud the collective efforts of these Internet companies to
work together to help the American Red Cross reach the refugees
who are suffering in this crisis," said Steve Bullock, acting president of
the American Red Cross. "These Internet companies are providing a
tremendous vehicle to bring people together and raise awareness and
needed funds. It's thanks to donations like these that the Red Cross
can be there for these families, providing them with the food, shelter,
and comfort they so desperately need."
Humanitarian gesture or pure publicity? You decide.
See Related Stories
iShip Announces New E-Commerce Shipping Service
FedEx and Netscape Build Shipping Portal
UPS Boosts E-Commerce Strategy
Amazon Expands the Empire with Online Auctions
Amazon Agrees To Purchase LiveBid.com |
