Ebay Now

eBay is currently expanding its same-day delivery service to local merchants and large retailers as it moves to compete more with Amazon.

According to Crain’s, eBay’s pilot program for same-day deliveries for merchants will begin in Brooklyn, eBay Brooklyn. The company already has 80 merchants on board for the fast delivery service.

Delivery costs will be $5 for customers, but FREE for merchants.

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EBay first launched their delivery service through eBay Now, a mobile app, in San Francisco two years ago. But has been limited to large retailers like Best Buy and Toys R Us.

“The proposition is delivery within an hour or two, and you can only do that with a point-to-point model,” Tom Allason, director of the company’s local initiatives told Crain’s. “To offer this level of service with hub-and-spoke you need to be within five to 10 miles of the customer, and that would require an awful lot of warehouses.”

Brooklyn was chosen for the test program because of its tech-savvy population and large number of shoppers and merchants.