Here’s How eBay Can Benefit From The Launch of Its Authentication Platform

With a high number of counterfeit products being sold on major e-commerce websites, some consumers are losing confidence in buying high-end goods online. eBay (NASDAQ:EBAY) is looking to address this issue through a service powered by a network of professional authenticators. Called eBay authenticate, this service was launched recently by the company whereby sellers will be able to opt in to the authentication service while listing products. Before the product is delivered to the buyer it will be reviewed by a professional authenticator, and the product will be passed on to the buyer only after it passes this inspection. If such inspected products are found to be fake by the buyer, eBay will refund the entire purchase amount. This feature will give a huge boost to customer confidence on eBay since buyers will be assured that the products purchased are genuine. The company plans to start with fashion products such as handbags for this service, and will likely broaden it based on its experience. This feature could increase the number of active buyers and sellers, as well as the number of transactions, on eBay’s platform.

The number of active users on eBay’s platform is a key driver of its valuation. We expect this number to grow steadily and increase from around 170 million in 2017 to nearly 213 million by the end of our forecast period.

eBay is taking several initiatives to make its platform more attractive for buyers and sellers. From better product listings, an enhanced search feature to a richer inventory of unique products, the company is trying to distinguish itself from other players such as Amazon. While large e-commerce giants such as Alibaba and Amazon also face the problem of counterfeit products on their platform, eBay has taken a concrete step to address this issue. The company already utilizes a combination of sophisticated detection tools, strong relationships with brand owners, retailers and law enforcement agencies to provide a trusted shopping experience for its customers. However, the authentication feature goes one step further and provides customers with assurance that purchased products will be genuine. This could potentially increase the number of transactions involving high-end products on its platform and drive growth in the long term.

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