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EBay has not been shy about its ambition to seize extra of the luxurious resale market. However whereas the Silicon Valley firm is broadly thought-about the pioneer of on-line peer-to-peer promoting for all sorts of products since its early startup days within the Nineteen Nineties, constructing a enterprise catering to high-end patrons and sellers has been difficult — as even start-up rivals like The RealReal and Vestiaire Collective have additionally discovered.
The information final week that eBay is a part of a £7.5 million ($9 million) deal to spend money on Cudoni, a UK-based VIP resale service, is only one of a number of steps the corporate has been taking to make a much bigger mark in luxurious resale for the reason that arrival of Jamie Iannone as CEO in 2020.
However resale for high-ticket gadgets like purses or hype sneakers is arguably extra advanced than for different classes as a result of degree of belief {that a} purchaser wants in each the vendor and {the marketplace} earlier than making these comparatively expensive purchases.
One a part of establishing that belief is assurance that an merchandise is genuine. Each eBay and Cudoni have aimed to handle this by way of their respective authentication programmes. EBay’s Authenticity Assure programme launched in 2020 for watches promoting for $2,000 and up, and has since expanded to different classes like sneakers and purses. At Cudoni, authentication and the white-glove service go even additional: it has its personal staff of authenticators and pricing strategists who handle your entire promoting course of, together with house assortment and itemizing gadgets on its platform.
Model consciousness can also be important for constructing belief, and that is the place eBay might be able to bolster Cudoni. Over time, eBay has cast robust model consciousness in trend resale, one thing others within the discipline — together with Cudoni — have but to realize. When BoF Insights requested shoppers to call trend resale platforms, The RealReal, Vestiaire Collective in addition to eBay topped the record. EBay’s Cudoni funding is a mutually useful play, for certain — whereas Cudoni can trip on the longstanding model energy of an business pioneer, eBay will get entry to experience on catering to the top-end shoppers of resale.
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BoF Insights Chart Watch
For extra in-depth analyses on the resale panorama, see the total report from BoF Insights: The Way forward for Trend Resale.
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