) 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
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
) to sell through its marketplace along with their respective
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
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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