Reportedly, eBay Inc. (EBAY) is planning a new marketplace called The Plaza. This new site will enable brands to sell directly to customers.
The new marketplace is said to be somewhat similar to Alibaba’s Tmall in the sense that both happen to be B2C (Business to Customer) direct online retail sites. eBay’s decision to launch this new marketplace has been viewed as a move to combat fierce competition from the likes of Amazon.com (AMZN).
However, the company has not yet divulged details regarding the size of the site and the date of its launch. Apparently, this move was initiated in view of the growing trend of direct-to-consumer marketplaces. eBay needs to convince leading brands such as Apple (AAPL), Nike (NKE) and Gap, Inc. (GPS) to sell through its marketplace along with their respective websites.
Though we are not certain about the scale yet, we believe that the idea of a new marketplace could help eBay attract top brands.
eBay is one of the world's largest online marketplaces. Goods and services are sold on the platform by a large number of individuals and small businesses all over the world. Other than the U.S., it provides country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.
eBay has taken all the necessary measures to boost growth, beginning with the fixed-price format, to wooing big sellers and customers, improving technology and navigation of its properties, investing in better fulfillment services and focusing on mobile customers to boost profitability. Its drive to provide complete online solutions for traditional retailers should further add to its growth going forward.
eBay reported third-quarter revenues of $3.9 billion, up 14.3% from the year-ago quarter. Its non-GAAP earnings per share of 54 cents beat the Zacks Consensus Estimate of 53 cents per share.
Currently, eBay has a Zacks Rank #4 (Sell).
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