As efforts to reduce waste and create a more environmentally friendly world ramp up across the globe, ecommerce giant eBay has created an entirely new section of their website in order to help with this exact process. With rigorous standards, eBay has partnered with many different major brands to launch their “Certified Refurbished” section, which features various products refurbished by the original companies that sold them. These products will come with a number of different standards and guarantees for the consumer as well. How has eBay been doing during the pandemic and what will this new section of goods entail?
Certified Refurbished and What it Means
The Certified Refurbished section of eBay’s website will feature a number of brands that have partnered exclusively with the company, such as Dirt Devil, Hoover, and Phillips, along with many other non-exclusive partnered brands like Microsoft, Ninja, and Cuisinart. In order to qualify under this section, the brands must meet certain criteria set by eBay, which include having the products be in “like new” conditions, along with having been professionally inspected and refurbished by the manufacturer or to the specifications of the manufacturer, as well as being packaged with original or brand new accessories. These specifications are backed by a series of consumer-friendly assurances too. On the consumer end, all products purchased under this category will have a two-year warranty backed by Allstate along with a 30-day return policy should the buyer change their mind. There will also be a money-back guarantee from eBay if there are major issues with the product. In addition to these assurances, the refurbished products will be sold at up to 50% off in comparison to a brand new version of the same item. For eBay, there is also a decent amount of data to suggest that this will pay off for them.
As it stands, only 32% of shoppers have ever given a refurbished gift before, which is not promising. However, in the same survey, 60% of shoppers would consider buying a refurbished gift this holiday season. On the opposite side, a clear 78% of Americans would gladly welcome receiving a refurbished item as a gift this year. With environmental sustainability becoming a larger issue of importance for many Americans, reduction of waste in gifts is also an appealing feature, with 60% of those who were polled reporting that they would be happy to know their gift was more environmentally friendly. Now taking this information and considering 37% of shoppers will have a decreased budget for holiday gifts this year, buying a refurbished product for significantly less money is even more appealing. This could also prove to be a lucrative boost for eBay, who has already had a banner year considering the spike in ecommerce due to COVID-19.
eBay in 2020
Despite the economic downturn, eBay has posted quality earnings throughout the year as both them and Amazon have seized the opportunity provided with the pandemic shutting down many physical retailers. In its most recent quarterly report at the end of June, eBay generated $2.865 billion in revenue. This translates to an increase of 18.24% in comparison to the same quarter in 2019. At the same time, eBay’s profits outpaced its revenue rate as well, improving by a strong 21.23% when comparing it to the profits recorded in 2019. eBay has continued to remain a major player in the ecommerce market, even as Amazon begins to dominate. Adding a new source of sustainable revenue to their website before the holiday season begins could serve as a catalyst for even bigger numbers ending out the year.
eBay has found a way to help boost their own sales going into the holiday shopping season, decrease the waste of people constantly buying new products, and reduce the cost for the consumer in one fell swoop. Their new “Certified Refurbished” section on the website will most likely result in a mutually beneficial agreement with those who shop on it. Adding further innovation to their already extremely profitable year, eBay will head into 2021 with significant gains even in the face of an international economic downturn.
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.