In an effort to streamline delivery and expedite shipping, eBay Enterprise (NASDAQ: EBAY), an eBay company, will open a new fulfillment center in Ontario, Canada, in second quarter 2014. The new 150,000-sq.-ft. facility will support client growth, including The Children's Place (NASDAQ: PLCE), which recently signed a new multiyear agreement with eBay.
Ebay's Canadian e-commerce business is growing rapidly. The new facility extends eBay's fulfillment and freight offerings in Canada and includes automation, such as conveyance and put-to-light technologies, to speed package delivery times.
"The Canadian market is providing new commerce opportunities for brands and retailers and our clients are turning to us to support their growth strategies in this region," said Tobias Hartmann, interim president, eBay Enterprise.
The new facility is an effort by eBay to keep up with the increasing demands of e-commerce. Retailers are increasingly shouldering shipping costs as shoppers have been conditioned to expect fast, and oftentimes free, shipping. Retailers, particularly online retailers such as eBay and Amazon, are aggressively driving out costs and expanding capabilities in advance of the 2014 holiday shopping season.
Amazon has gone so far as to build out a private delivery fleet, according to DC Velocity, to sidestep the delivery delays experienced during the 2013 holiday season and support the growing Amazon Fresh online grocery service.
Saks recently modified its shipping policy to meet the demands of cost-conscious online shoppers by expanding its free shipping to all orders regardless of purchase total. Macy's also recently announced that it is exploring same-day deliveries. Macy's has begun a pilot of same-day service in partnership with eBay, UPS (NYSE: UPS) and FedEx (NYSE: FDX) and local delivery companies across the U.S.
-See this eBay press release
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