You're watching...
Scott Kessler, S&P Capital IQ head of Tech Sector Research, on eBay’s new same-day delivery service and how it will stack up against Amazon.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
EBay is working with some big -- retailers to offer -- -- same day delivery -- question is can the company once known for its online auctions compete with retail giant.
Amazon.com.
Well joining me now is Scott Tesla.
Internet equity analyst -- S&P capital IQ.
Scott thank you for joining us I guess.
Is this eBay trying to rebrand itself -- -- -- still think of that eBay it's a place to buy used goods.
What -- -- slot for having me.
I think to some extent this is a way for -- data potentially.
Reintroduce itself.
To a wide variety of folks like yourself who frankly think -- B day is.
A place to find not only -- merchandise but.
Maybe out of season goods or irregular items a war those collectibles that the company really.
Built its business on starting in the late 1990s.
In addition we think it's really a good way for you day to you.
What they re engage with a lot of larger retailing partners some of which include but Nordstrom and Walgreens -- crate and barrel on Best Buy and Toys 'R' Us and the list goes on.
-- because those folks traditionally probably have looked to other channels.
To selling their merchandise -- how does this eBay now look I know it's just being tested in San Francisco but how exactly does it work.
So basically the concept is relatively simple and that is use eBay now to look for a product that you essentially want.
Not just necessarily within the same day but.
Arguably within an hour -- two and that item can be purchased.
In the context of a very simple transaction.
Where you essentially indicate that you want -- particular item you probably pay -- with PayPal among other things.
And someone physically delivers it.
To your doorstep.
And basically all you have to do is probably not only be at home to accept the item but also pay an extra five dollars and delivery costs is this real value for -- customers is something is will be well -- you think.
Well I think the market opportunity frankly is somewhat limited at this point I think there -- a lot of different reasons for that but.
Can -- the fact that.
Steve has always been a big theme when you think about Internet and Internet retell.
You know it used to be that companies use to strive.
To operating and meeting the needs of various constituencies.
In Internet time that -- faster and faster and we've seen a number of companies including frankly.
-- primary competitor Amazon.com.
Looking to do more when it comes to fulfilling shipments.
-- faster amounts of time so.
We think on some level that what -- trying to do here is perhaps -- need that people didn't know already existed.
But the reality is that looked unless something breaks and you can't leave the house all right -- have a child that.
Really wants to use that one toy that she saw -- commercial.
I don't see compelling reason for why people are gonna use this and drove right nonetheless there are opportunities we think tougher.
