eBay To Launch Global Shipping Service To Boost Its Martketplace Revenues
eBay (NASDAQ:EBAY) is reportedly preparing for September launch of a new program, eBay Global Shipping Program, an export service aimed at promoting cross border trade. The service will be available only for items located within the U.S. and the shipping location must be in a country to which the U.S. government allows shipments. The program will be supported by Pitney Bowes, a service provider of documents, packaging, mailing and shipping, and will allow the sellers to ship items without worrying about issues like customs, taxes, shipping regulations and other restrictions. PayPal will be the mandatory payment method for listings offered using this service.
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The eBay Global Shipping Program will initially be rolled out only in the U.S., and the sellers will have the option to opt in to the program. The option will be made available through promotional e-mails and on various pages of eBay’s U.S. site, including the sign-in and My eBay pages. However, once opted in, the users won’t be able to opt out.
The seller will be responsible for handling the domestic leg of the international shipments made to the domestic parcel processing facility specified by Pitney. However, the latter will be responsible for the international leg, which means that the costs, customs issues, insurance, and customer delivery will be Pitney’s responsibility. The buyer will be able to see the total associated costs as a single amount. The import charges will be determined based on the buyer’s location and will be visible on the listing page of the item. The buyer as well as the seller will be able to track the shipment from the U.S. to the delivery address through their My eBay pages.
We believe this new service can boost eBay’s revenues from its Marketplace division. Over time, as the service is rolled out to other countries, the number of listed items and interested buyers would see an exponential rise.
eBay Marketplaces currently constitutes almost 50% of our $50 Trefis estimate for eBay, which stands nearly 7% above the current market price.
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