EBay (EBAY), which has long been the collectors' and finders’ way to meet on the digital marketplace, is making a change to the way shoppers buy products on its site.
The San Jose, Calif., technology company started as a way for people to make transactions for hobby collector items back in 1995 and through the decades it has grown to a $10 billion business.
EBay’s users weren’t the only ones making acquisitions, as eBay itself made many acquisitions to add to its website's power. One of the most notable acquisitions might have been when eBay acquired PayPal in 2002. In fact, eBay has acquired over 60 different companies since 1998. Each acquisition boosted eBay’s global market power by either taking out a competitor or increasing its other business operations like that of payment processing in the acquisition of PayPal or Bill Me Later.
EBay is a collector’s paradise and a trader's precision tool. If a product will sell on eBay for $100, that might be a reasonable going price, but being able to compare two products for likeness is more challenging. EBay’s product descriptions are a good way to verify whether or not a seller’s description is accurate or not, as products are listed with conditions like New, Used, and Not Specified. The ‘Used’ and ‘Not Specified’ can lead to buyer's concerns, and not knowing what they are getting when making a purchase.
That's a key area where Amazon (AMZN) has run into trouble.
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EBay Adds New Feature
Shopping at the auction site has just gotten a little better, as eBay is adding a new way for shoppers to be sure what they are buying is authentic. One thing shoppers can be sure of is, now if they want to get an authentic luxury products it can now be verified.
EBay’s new Certified by Brand authenticity program will not only allow shoppers to have confidence in the purchase but also allow the sellers to be able to prove their sales validity and get the best bang for their buck when reselling merchandise.
The Certified by Brand program isn’t just good for eBay’s sellers and buyers, but for the luxury brands themselves. Certifying luxury brands in the resale of the products can help keep the consumers happy with their purchases. Certified by Brand will have two options, “Direct from Brand” or “Brand Authorized Seller.”
"Certified inventory in the resale market is an undeniable opportunity for brands and authorized retailers, and eBay is the ideal partner for those looking to scale," said Tirath Kamdar, eBay’s Global GM of Luxury. "EBay's Certified by Brand program broadens access to both buyers and brands to shop and sell luxury goods with confidence and certainty."
EBay’s Certified by Brand sales are guaranteed by the brand with a one-year warranty and a certificate of authenticity. The Certified by Brand program will include luxury brand watches, handbags, and jewelry from specific participating brands. The list of luxury brands continues to grow as more companies join eBay in the Certified by Brand program.
The current list of luxury brands that have joined the Certified by Brand program include ADPT (All Day, Purpose, Terrain), Alberto Milani, ALOR, Badgley Mischka, Diana M., Ernst Benz, I.Reiss, Judith Ripka, Konstantin Chaykin, Le Vian, Lika Behar Collection, Perrelet, RPaige, Roman+Jules, Vianney Halter and Zodiac Watches.
Shoppers will be able to identify the sale items as either “Direct from Brand” or "Brand Authorized Seller” badge and know that the merchandise is authentic. EBay sellers are excited about the authentication addition.
"As a long-time customer of eBay, I have always valued discovering remarkable pieces among the platform's breadth of inventory", said eBay user Vianney Halter. "I am pleased to be partnering with eBay to bring a selection of extraordinary watches to their customer base."
Amazon has long-faced concerns over whether goods are legitimate or counterfeit.
EBay’s Luxury Authentication Growth
Luxury authentication on eBay will only help grow the luxury brands' consumer base. Those who may not want to buy the luxury brands at the ‘new’ price tag, may find that the merchandise is worth it after experiencing the brands at second hand or new-to-you price tag. Secondhand sales of luxury brands may be viewed by some as a threat to the high-end companies, but that’s far from the case. The resale of the products shows the brands merchandise holds value, and only enhances the demand for the luxury brands themselves.
A threat to the luxury brands would be the fake companies out there trying to copy and or sell fake luxury designs with the luxury brands names. Which is actually a great reason for eBay’s Certified by Brand program, as the luxury brands can verify that the product is in fact their merchandise and help weed out the fakes in the market.
