) indicated in its recent earnings that a number of brands and
retailers are starting to open outlet shops on eBay
(stores.ebay.com). A growing presence of traditional
retailers on eBay can help increase the number of merchandise
listings on the site, which in turn can attract more buyers to
eBay's platform. This is a good move for eBay which faces
competition from online retailer
) and its network of third-party sellers.
Retailers opening up outlet shops on eBay
eBay's Marketplaces business constitutes around half of the
$31 Trefis price estimate for eBay's stock
According to eBay management
, many major retailers such as U.K.'s Saville Row, Jigsaw and Ed
Hardy have opened up outlets on eBay.
Outlets on eBay can help retailers reach new customers as well
as sell excess inventory quickly, reducing costs associated with
accumulating inventory. For shoppers, eBay outlet stores can
provide convenience as well as potential discounts on brand name
retail items. We believe that trends such as these will help
eBay increase the number of merchandise listings on its site from
around 2.9 billion in 2009 to around 4.5 billion by the end of
Trefis forecast period.
By modifying the forecast above, you can see how there could be
an upside of more than 10% to the $31 Trefis price estimate for
eBay's stock if the number of merchandise listings doubles to reach
5.8 billion by 2016, instead of 4.5 billion that we forecast.
You can see the complete $31 Trefis Price
estimate for eBay's stock here