eBay (EBAY) is expanding its same-day delivery service to San Jose, a sign that the online marketplace company is stepping up efforts to compete with retail giant Amazon and Walmart's same-day delivery service.

eBay announced on Thursday that customers can now buy merchandise from local stores through a free iTunes app called eBay Now, and their purchase will be delivered within an hour to anywhere in San Jose. The app lets shoppers track their delivery.

The 60-minute delivery service was launched last year in San Francisco. eBay also rolled out delivery in New York City before expanding to San Jose, where it has company headquarters.

The charge is $5, and eBay will only deliver for orders that are at least $25. If the customer wants to return the item, the driver will schedule a pickup and a refund appears in the customer's PayPal account.

eBay Now is available from 9 a.m. to 9 p.m. Monday through Saturday, and from 9 a.m. to 6 p.m. on Sunday.

Contact Heather Somerville at 925-977-8418. Follow her at Twitter.com/heathersomervil.



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