eBay Now: was it killed by fraud?

Posted by Rurik Bradbury on November 26, 2014

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Earlier this week, TechCrunch reported that eBay pulled its same-day delivery app, eBay Now.

An eBay spokesperson told the website that eBay Now is "moving to core," though both TechCrunch and Reuters say that eBay doesn't plan on expanding its same-day delivery service.

Re/code had earlier interviewed eBay CEO John Donahoe, who said "There is an enormous amount of money that’s going to be spent in same-day delivery, and I don’t think that’s going to be — that’s not essential to our core, target consumer." Donahoe denied to Re/code that the service was shutting down, but Jason Del Rey hypothesized that it was to see if the app got a big jump during the holiday season.

Doesn't look like that's the case.

Major retailers we talk to have all indicated that, in order for them to remain competitive against e-commerce behemoth Amazon, they'll need to roll out their own same-day shipping service. A huge problem? Fraud.

One merchant with over $1 billion in revenues told us fraud is the main reason retailers find same-day delivery so difficult to implement. The high fraud rates mean that they must manually review transactions, which is a big time-waster. Instead of processing orders right away, they must go through various review cycles, including back-and-forth by email or phone with the customer, which can take hours or even days, depending on how responsive the customer is.

While same-day delivery may not be a fit with eBay's core product, it seems very likely that fraud may also be a reason. A few months ago, The Guardian reported that sellers were facing pushback from PayPal and eBay over fraudulent transactions, sometimes leaving customers without the funds or the goods that were on sale.

Fraud is a major concern for e-commerce sites, and it’s evident that the constant fear of fraud has prevented some major retailers from competing successfully with other sellers that have better fraud protection. Trustev’s “digital fingerprinting” technology can help merchants and retailers reduce fraud, so you can focus on what’s most important for your business — providing your customers with the best service possible.