EBay Creates Digital Wallet, Plans Storage Vault For Collectibles

Diving brief:

  • After launching authentication initiatives for various high-end product categories, eBay is launching its first digital wallet allowing users to store their sales earnings and use them to buy new items or pay seller fees, the e-commerce giant announced on Thursday.
  • The company also announced the upcoming launch of eBay Vault, a storage facility and digital marketplace for trading cards and other collectibles. The safe will launch in the United States next quarter and will also secure luxury goods soon, the company said.
  • The company expects eBay Vault to secure up to $3 billion in assets over the next few years, which could make it one of the largest repositories of non-government assets in the world, according to the release. Press.

Overview of the dive:

With eBay Vault, the seasoned e-commerce platform builds on its previous efforts to foster greater trust in its marketplace.

In October 2020, the company announced that it would bring in third-party experts to authenticate shoes sold over $100 as part of its authenticity guarantee initiative. Later that month he also announced its certified refurbishment programwhich featured items in like-new condition that had been cleaned, inspected, and refurbished by their manufacturer.

The company has dedicated resources to authentication not only sneakers but also luxury watches and sports memorabilia. Last April, the company started hosting in-person events to verify the authenticity of collectibles in Atlanta, Seattle and other major cities. This acquired the authentication division of Sneaker Con Digital in November.

eBay’s new digital wallet offering is part of an effort to expand its payment capabilities, which also includes new features such as the ability for users to receive payments on demand or on a schedule, in line with its investor day infographic. EBay currently has 147 million active buyers.

“Over the past two years, we’ve fundamentally changed the trajectory of our market. We’ve demonstrated that we can improve customer satisfaction, accelerate our growth, help sellers thrive, and attract and retain passionate buyers,” said Jamie Iannone, CEO of eBay, in a statement. “We’re building an eBay for the future by doubling down on what we do best: connecting sellers and buyers of non-new seasonal products.”

As it executes a transformation, eBay also hired Walmart’s former digital advertising manager last year Stefanie Jay as Chief Business and Strategy Officerwhich involves managing the company’s strategy, business operations, analytics and communications teams.

Although eBay and other marketplaces have resources dedicated to verifying goods sold on their platforms, the marketplaces remain a focal point for those fighting counterfeits. A host of retailers have called for greater transparency around e-commerce marketplaces and their sellers: Twenty retailers, including Target, Nordstrom and Neiman Marcus, wrote a letter to members of Congress in December asking them to adopt the consumer law “Integrity Notification and Fairness in Online Retail Marketplaces”, legislation that would require online marketplaces to disclose more information about sellers to buyers and verify the identity of high-volume sellers. Retailers said the law would discourage the sale of stolen goods in online marketplaces. After initial opposition, eBay also approved the bill, along with other e-commerce marketplaces.