- If an item is sold out at a major retailer, the customer might seek an alternative source.
- Shopping on eBay can mean slower shipping times. But that’s not such a disadvantage when supply chain woes are also slowing competitors’ shipping times.
Supply chain disruptions have been an ongoing issue since the onset of the pandemic. Economic lockdowns and stay-at-home orders initiated to help slow the spread of the coronavirus also slowed production.
Even though essential industries were allowed to stay open during the pandemic, operations were often disrupted by a COVID-19 outbreak. Moreover, many consumers have concentrated their spending on manufactured goods over the past 18 months since they didn’t have alternative spending options (like concerts, sporting events, and theme parks) to spend disposable income on. The combination of supply disruptions and surging demand has strained the system, and there are no signs of the situation easing anytime soon.
Image source: Getty Images.
Never sold out
eBay does not handle fulfillment and leaves the logistics of product delivery up to the buyer and seller. It merely acts as a platform for bringing the two together and collecting a fee for its service. In its most recent quarter, this sales model helped eBay earned revenue of $3 billion on gross merchandise volume of $27.5 billion.
Under normal circumstances, not handling fulfillment has been a slight disadvantage for eBay. Customers have gotten used to fast and free shipping and knowing what day the order will arrive from some eBay competitors that handle their own product fulfillment. But eBay’s disadvantage here goes away when supply disruptions occur, since several retailers are experiencing delayed shipments and extended order-to-delivery dates.
Having an asset-lite business model without fulfillment facilities also allows eBay to earn higher
Read more here:
Why eBay Wins From Supply Chain Woes