eBay, Depop Building Lower-Cost Pickup & Drop-Off Shipping Network
eBay is hiring to develop a lower-cost pickup and drop-off shipping network for its core marketplace and recently acquired Depop, with plans for a substantial expansion of US logistics operations.
A new Head of PUDO Network, Operations and Partners position in San Jose describes pickup and drop-off (PUDO) as a major initiative to provide significantly cheaper shipping for both marketplaces, with eBay acknowledging the project will require creating a physical network and operating model that "largely does not exist today" in the US.
The new hire will oversee the development of a network connecting local pickup and drop-off locations with package consolidation, transportation and last-mile delivery, determining which markets to prioritize and how to build sufficient shipping volume to make the operation economically viable. The role also includes evaluating where eBay should rely on third-party logistics partners or take greater control of operations, while establishing standards for service quality and network expansion.
The hiring follows CEO Jamie Iannone's October 28 Q3 earnings call announcement that eBay would begin a limited seller drop-off test in several large US metropolitan areas during the fourth quarter, building on its existing PUDO operations in the UK.
Iannone said eBay is making pickup and drop-off services more visible and economical through parcel shops and lockers in the UK, with approximately 95% of buyers living within a mile of a participating location.
"We are simplifying the experience and using targeted promotions to build adoption, giving sellers convenient drop-off options and buyers a lower-cost alternative to home delivery, which can increase velocity for lower-priced inventory."
For the upcoming US test, Iannone said eBay wants to determine whether lower delivery costs and more shipping options can increase listing activity, conversion and transaction velocity, while measuring customer adoption, service quality and unit economics.
eBay has already begun introducing local-business drop-off locations through its expanding Ship with eBay managed shipping program, with the new option currently available to select US sellers alongside traditional USPS and FedEx services.
Liz Morton
Replicating the UK's PUDO network in the US could prove challenging, particularly outside densely populated cities where sellers may have to travel farther to reach participating locations.
Under the current Ship with eBay managed shipping program, eligible sellers cannot choose an alternative carrier if eBay assigns them to a drop-off location that is inconvenient or impractical. Instead, eBay advises them to cancel the sale, raising questions about how the company will balance lower delivery costs with seller convenience as it builds the package volume needed to support the network.
UK sellers also previously raised accessibility concerns about mandatory drop-offs under Simple Delivery, with eBay subsequently introducing carrier preferences that allowed sellers to select Royal Mail for home collection, though doing so could increase shipping costs and eBay could override those preferences in some circumstances. No comparable carrier-preference option is currently documented for the U.S. program.
A separate Manager, PUDO Pricing & Monetization position in Toronto will evaluate whether cheaper shipping generates enough additional business to justify the investment.
The role will focus on testing shipping prices, subsidies and incentives to determine whether cheaper delivery increases sales, particularly for lower-priced merchandise. eBay also wants to distinguish genuinely new transactions from orders that simply shift to another shipping method, and determine whether short-term promotions lead to sustained use of the service.
Depop and Vinted have spent much of 2026 competing aggressively on US shipping prices, cycling through free and heavily discounted delivery promotions to encourage more purchases of lower-priced secondhand fashion, while Poshmark launched its own $0.99 holiday shipping promotion last week.
During ThredUp's recent Q3 earnings call, CEO James Reinhart estimated rival peer-to-peer resale marketplaces could spend as much as $500 million on marketing and order subsidies in the second half of 2026, plus additional shipping subsidies.
Reinhart called the spending "wholly irrational," questioning whether businesses operating on relatively low margins with high marketing costs and limited customer loyalty could achieve sustainable growth.
Liz Morton
Building a dedicated pickup and drop-off network could allow eBay to reduce some of the actual costs of delivering packages rather than continuing to subsidize traditional carrier rates, particularly if the combined volume from eBay and Depop is sufficient to support collection points, sorting facilities and transportation between locations.
CFO Peggy Alford recently acknowledged that Depop operates at a lower take rate than the core eBay marketplace, partly because shipping subsidies are recorded as reductions to revenue. eBay has not disclosed how much it is spending on those subsidies or the savings it has achieved through its negotiated carrier rates.
Depop also eliminated independent shipping for new US listings effective October 28, requiring sellers to use Depop Shipping through USPS instead of purchasing their own postage.
Liz Morton
Vinted's use of SpeedX has generated complaints from buyers and sellers about inconvenient drop-off locations, delays, missing packages and difficulties obtaining assistance when deliveries go wrong.
In one October Reddit discussion, a buyer reported that a local tea shop had stopped accepting SpeedX packages after ending its arrangement with the carrier, leaving two purchases unaccounted for. Another buyer reported being unable to retrieve multiple packages already delivered to a SpeedX pickup location because the required release codes had not been provided, with Vinted and SpeedX directing the customer back to each other for assistance.
SpeedX also currently handles some deliveries from eBay's Authenticity Guarantee facilities and final delivery of international SpeedPAK shipments, according to customer reports.
eBay's plans to build out a physical shipping network also have parallels with GameStop CEO Ryan Cohen's unsolicited $56 billion bid for the company earlier this year, which suggested using GameStop's approximately 1,600 US retail stores for authentication, product intake and fulfillment.
GameStop's acquisition proposal specifically envisioned using those stores as drop-off and shipping locations, arguing the existing retail footprint could provide eBay with a national fulfillment network without additional capital expenditure.
eBay's board rejected Cohen's acquisition proposal in May and in August, Bloomberg reported that Cohen was considering withdrawing the bid in favor of a partnership or joint venture that would allow eBay to use GameStop's retail network instead, potentially including representation on eBay's board.
Neither company has publicly confirmed whether Cohen followed through with a partnership proposal or whether any discussions have taken place since Bloomberg's report.
