eBay announced changes to the luxury watch category to appeal to buyers, announcing authentication and escrow services for high-priced watches. eBay pays for authentication on eligible items, while buyers who choose to use escrow must pay for it.
eBay is also appealing to sellers of high-end timepieces with fee discounts, but only for those who are registered for eBay managed payments.
eBay had signaled earlier in the year that it was open to changing its one-size-fits-all approach to categories given the breadth of goods for sale on its marketplace. It has seen its sneaker category under attack with the launch and rise of StockX (now led by the former head of eBay’s marketplace, Scott Cutler) and may be hoping to stave off similar threats.
In today’s announcement, eBay said it ran “one of the largest luxury watch marketplaces in the world” and hosts the “largest inventories of new, vintage and pre-owned contemporary and fine watches in the world — including brands like Rolex, Patek Philippe, Omega, Audemars Piguet, Breitling and Panerai.”
Nearly eighty thousand new, pre-owned, and vintage watches will sport the new Authenticity Guarantee badge on eBay.com/LuxuryWatches.
Highlights of Tuesday’s announcements include the following:
- eBay is reducing seller fees by as much as 35% for active managed payments sellers on watches sold over $1,000.
- eBay is reducing seller fees by 30% for sellers who are registered but not yet active in managed payment on watches sold over $2,000.
- The selling fee discounts apply to auction and fixed price listings on the US site, with details to follow on September 9th.
- Shoppers must look for the “Authenticity Guarantee” badge that indicates a watch’s eligibility. “After purchase and before being shipped to the customer, the piece is routed to a third-party authenticator for thorough assessment. Once verified, it is then shipped via expedited, two-day shipping from the authenticator facility to the customer with signature confirmation upon delivery. eBay covers the cost of authentication, as well as the two-day, secure shipping from the third-party authenticator facility to the buyer.” eBay pointed out, “authentication services are provided independent of the brands sold on eBay.com”
- Buyers can choose to use escrow on watches sold for $10,000 or more in partnership with Escrow.com. “Escrow.com facilitates transactions by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met. The buyer will have seven days to inspect and examine the watch, before accepting the item. Once accepted, or if the seven-day inspection period has passed, returns will not be available. For sellers, there is no risk of charge-backs or escrow processing fees.”
eBay also launched eBay Channels, a new “content-led experience” on the latest versions of eBay’s iOS and Android apps. “The new experience’s feed includes relevant articles, curated inventory, and spotlights top sellers in the field.”
eBay released the following statistics on luxury-watch sales on its marketplace:
- eBay sold over 2 million watches in 2019 with nearly 8 million watches sold over the past three years.
- 54% of eBay’s watches vertical is comprised of pre-owned inventory, and there has been over a 60% increase for pre-owned in eBay’s watch category from 2019 – August 2020.
- There are over 165,000 daily live listings on average for luxury watches, and since 2019, there has been a 10% increase in average daily live listings for luxury watches
- Rolex accounts for 40% of luxury watch sales on eBay, and since 2019, Rolex sales have increased 60% on eBay’s marketplace.
You can find the full press release on the eBay corporate website.