eBay Fulfilment Services – Why Argos?
As we reported today eBay are flexing their negotiating muscle in the UK and have signed a new multiyear deal with Argos to extend the click and collect arrangement and to add in a Drop-Off at Store service.
This isn’t the first major deal eBay have done to support their SME retailers and consumers – it’s a similar philosophy to the Global Shipping Program which allows small sellers without an International courier contract to sell to buyers around the world with practically no resource other than the ability to ship to eBay’s shipping centre in the Midlands. The aim is to support consumers and small businesses, give them more fulfilment options and make the entire process as frictionless as possible.
That brings us to the question, why Argos?
Argos has a unique portfolio of shops covering the vast majority of the country. Not only that but, unlike most retailers, Argos is a uniquely old fashioned service orientated shop but with the latest in modern technology.
Go back 100 years and when you walked into a shop there would be the shop keeper behind a counter waiting to serve you. That model of retailing has long gone, no longer do we need someone to weigh our fruit and vedge, they’re already in uniformly weighed plastic bags. There’s no apothecary behind the counter to measure out remedies from carboys. Sweets and confectionery are no longer measured out into paper bags weighed in pounds and ounces.
Argos is one of the very few remaining retailers that serves customers from behind the counter and that’s a big deal when you want a service orientated drop off/collection point.
Space is always a requirement, Argos stores are designed from the ground up to be more like a warehouse with a trade counter than a modern retail store where you collect the goods yourself before paying. All Argos stores have the facilities and wherewithal to handle large quantities of parcels – In fact Argos is the famous brown box retailer and pretty much all they do in effect is parcels!
Argos have also built their store network in a hub and spoke arrangement with larger stores able to replenish smaller stores with stock as needed. Currently we understand that all eBay parcels will be collected and delivered to the store by eBay’s nominated carrier. However it’s not beyond the realms of possibility that Argos’ hub and spoke arrangement could be used as a courier network in the future.
What’s in it for Argos?
David Robinson, Chief Operating Officer, Argos, told us that “Argos invented click and collect in the UK, and recently added to its record of innovation by introducing FastTrack Collection and FastTrack Delivery – market leading fulfilment services for the online shopper.
“The ability for customers to get their purchases quickly, easily and locally has become the new retail battleground. With over 800 stores and a friendly face on every high street, we are ideally placed to attract eBay’s business and consumer customers to use our unique store network. This deal [with eBay] reaffirms and builds on the successful and deepening relationship between our businesses”.
eBay has the potential to put millions of parcels through Argos stores, in fact they already have – currently over 3 million eBay parcels have been collected at Argos. Volumes are going to accelerate rapidly as consumer sellers and small businesses start using eBay Drop-Off at Argos.
This is going to put Argos firmly in the centre of the eBay world for many eBay buyers and sellers and with millions regularly visiting Argos it’s inevitable that they’ll see an up-tick in sales. If you’re dropping off or collecting parcels at Argos you’re way more likely to make purchases there at some point.
A future eBay Nationwide Fulfilment Services imagined by Tamebay
With Argos rolling out their fleet of delivery vans and their hub and spoke arrangement we can easily envisage a possible future eBay fulfilment network which will look very different to the new eBay click and collect or drop-off services. With a little idle speculation, what might the eBay Nationwide Fulfilment Services look like in a few year’s time?
Argos will have thousands of drivers delivering Argos products to Argos customers and at the same time could be collecting eBay parcels from small businesses. With their four daily delivery slots (7am-10am; 10am-1pm; 2pm-6pm; or 7pm-10pm) you can choose what time of day you’d like your parcels collected.
The parcels go back to the local store and are whisked from the local Argos to the nearest Argos large store and overnight are transferred through the hub and spoke network to the buyers local Argos. As soon as the buyer receives notification that their product is in their local store they can either drop by and collect it within 60 seconds of entering the store, or they can opt to have it delivered to home again choosing one of the four convenient delivery slots.
Then, if a consumer needs to return a product, the Argos network is standing by for collection or drop off to whisk the parcel back to the seller for an alternative product or refund.
Seller’s feedback is protected as soon as their parcels are scanned into the Argos network and there’s never a late delivery feedback and no more missed deliveries for consumers and all with tracked next day delivery at an industry beating price point.
I might reading too much into the new eBay and Argos announcements and the services may never expand to the extent described above, but the new eBay Nationwide Fulfilment Service is a great start and one we’ll be watching with interest for future developments.
hope it works, anything quicker cheaper and more reliable is good,
though we still feel nationwide is a bit of an overstatement
with only 840 stores mostly city ot town centre
TL;DR – Money.
money is why.
somebody at ebay figured they’d make most money using argos, so they used argos.
surely not? we all know that ebay have the sellers interests uppermost in everything they do
>somebody at ebay figured they’d make most money using argos
And somebody at Argos figured they’d make money supporting ebay- as do lots of other companies.
Anything that makes life easier for sellers (and buyers) should be welcomed. The collection point service offered by Argos is not (currently) charged to either the buyer or seller.
to be fair Argos promise of same day delivery at no extra even to the highlands and islands has to be a big plus , and a credit to them
If it goes the way Tamebay visualise then all well and good. Extra competition giving sellers more options is a good thing, and it would be attractive..
However, the new offer only works if you are near to an Argos store. I’d have to drive for 20 minutes, and then risk the wrath of the wardens to unload my shipments. Whatever the benefits, it isn’t worthwhile to do this, and if I wanted to go down that route MyHermes offer a lower cost solution with more locations and closer to home than the Argos route. What I really want is an improved lower cost tracked solution from Royal Mail that makes these other options redundant.
What’s in it for Argos?
COO David Robinson does not answer the question, he answers what’s in it for eBay.
I suppose as an earlier post by James says, ‘money’. I guess eBay are paying for the service. I guess also the COO is being overly cautious in fearing he may put off consumers if he assumes they make impulse purchases.
I don’t know is the real answer Bernard… but I can speculate and think of all kinds of synergies that might make sense.
For instance Argos are about to hit the busiest time of year and employ a whole load of drivers for their new same day delivery service. I could wonder what those drivers will do at quieter times of the year and wonder if eBay collections could be in the mix? If they were then all those £3.95 Argos charge for same day deliveries could be supplemented with £3.95 to pick up your eBay parcels for example – in effect eBay could add the volumes needed for it to make commercial sense for Argos to launch their home delivery service for Argos customers.
I’m probably way off the mark, but there’s probably a host of reasons why it works for Argos as well as for eBay.
you only need to look at the adverts and promos on this site alone to discover there are dozens even hundreds of fulfillment and shipping options, couriers ,parcel delivery and postage companies,
the online industry seems to be fixated with shipping and delivery ,,ebay will need to slant the playing field in the argos direction for this to work
There is only one “minor” detail missing from this vision of future: if you collect the mail from the companies then you need to have also someone to sort that mail not only vans and drivers. And that is most of the time the most difficult bit of the mail delivery. How many times have you heard RM complaining that they can not hire enough ppl to sort the mail (especially during peak times) ?
wont this become less of a hassle, mail sorting,
as all couriers ive used, use a barcode, and have the postal area (usually first part of postcode), in larger font than even the full address.
and also arent RM moving to barcodes too?
as i read on the topic of babz media shutting up shop.
I think Ebay are looking at home delivery and as sellers we should hope they are.If Amazon cleans up we will all be in trouble.I sell on both of course.My only gripe with Ebay is i cant use Click and Collect because my items are too big.If Ebay do want to move forward with Argos i would hope they would increase the size limits to industry leading.That would really help us,and buyer.
Remember though back in 2011 or 2012 when ebay said they would not provide fulfilment themselves as, like people are starting to realise :|, it is a MAJOR operation to deliver.
Hence they need to outsource it.
You find online how many millions and millions Amazon have invested in fulfilment, remember Amazon are are technology company, ebay are not.
Yes it is bottom line about the numbers, everything is in big business. What these corporate giants do is always on another scale.
Like you reported on the delivery expo article and what the big boys are saying about Black Friday, it is nigh on impossible to achieve 100% fulfilment.
We all want to make a few quid selling online, yet no one can 100% deliver.
I said it a few years ago and I say it again, ebay should own and operate a global fulfilment company. This would make them the winners in ecommerce hands down. (IMHO)