eBay Up as it Announces Pilot Program - 18 December 2014
By: Stephanie Brown
EBay Inc. (NASDAQ:EBAY) is working to ensure its same-day delivery system works efficiently and reliably this holiday season. It recently announced that it is expanding its local pilot program in Brooklyn, with the addition of over 80 small businesses that will offer scheduled and same-day delivery, in addition to in-store pickup to local customers.
The mega e-commerce company started this program, the ‘last mile’ option more than a year ago where the focus was geared towards attracting large retailers. However, eBay decided to change its tune, with it now shifting towards smaller businesses. This new effort is targeting customers who buy goods on local online stores and would prefer to pick them up themselves.
Last year, eBay bought a same day delivery startup Shutl that enabled customers in the U.K. to pick up merchandise bought online from their favorite stores. In the past, eBay relied on distributors delivering the goods to customers, but it has since switched to Shutl model. EBay already rebranded its ‘eBay now’ offering to ‘eBay Local’ which runs in a number of cities such as New York, Brooklyn, and San Francisco.
The online retailing giant is now allowing its consumers to purchase items online and have them delivered through traditional means. It can be done either through the same-day delivery option or they can pick up the items by themselves. The company’s director for local initiatives, Tom Allason, has already pointed out that many customers were not all psyched up on the same-day delivery system, which in fact costs more, compared to picking up the merchandise in person at no extra cost. Additionally, it is widely known that free delivery and lower prices remain the two most important things for majority of online shoppers.
EBay has broken out on an hourly-chart and closed above its 50-Day SMA of $55.94, which is certainly a positive sign. The stock after experiencing a technical correction last week has been moving up thanks to positive sentiments. As of now, the stock is finding strong support at $55.5 and $55 on the downside.
Buy eBay Inc. (NASDAQ:EBAY) above $56.5 for target of $56.9, $59.4, with a stop-loss of $56.35.