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eBay's (EBAY) Authentication Service Now Expands to Jewelry

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eBay Inc.’s (EBAY - Free Report) expansion of its Authentication Program is in full swing. The company recently expanded its eBay Authenticate platform into the luxury jewelry category. This will offer consumers more than 45,000 high-end diamonds and other jewelry, verified by professional authenticators.

In order to lure customers to this platform, the company is also offering special deals and discounts on a few select jewelry items. Reportedly, eBay already has 177 million active buyers worldwide. The latest move of the company will further strengthen its client base. Moreover, the expansion of the Authentication Program to high-end jewelry will aid the Marketplace business.

eBay’s Authenticate service, which was launched last year in the luxury handbags category and expanded to luxury watches category this year, now includes fashion jewelry, wedding bands and many more items, all marked with an "Authenticity Verified" label.

Investors will surely keep an eye on moves like this to see whether they can boost eBay’s stock that has underperformed the industry on a year-to-date basis. It has lost 22.4% against the industry’s growth of 9.4% in the said period.

 

 

eBay’s Focus on Genuine Products

In a bid to gain trust among buyers and expand the Marketplace business, the company has already been using a number of anti-counterfeit measures.

These include detection tools, enforcement mechanisms, relationships with brands as well as retailers, and law enforcement, among other anti-counterfeit measures. In addition, its Verified Rights Owner program, launched back in 1998, allows buyers to report the possible counterfeit goods.

We believe that these endeavors will help the company to crack down on fakes and reduce the risk of counterfeit products in the Marketplace business.

Bottom Line

eBay is one of the world's largest online trading communities with a powerful marketplace for the sale of goods and services by individuals, as well as small businesses. The company enables trade on a local, national and international basis, with local sites in numerous markets in the United States, along with country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.

It is making all efforts to improve the Marketplace business. eBay is currently re-platforming itself by building product catalogs on structured data, enhancing mobile platform, rolling out new browse-inspired shopping journeys and strengthening its brand.

Also, the company accelerated its partnership deals to enhance the Marketplace. It is anticipated to benefit from added selection of luxury brands. However, intensifying competition in the e-Commerce space as well as foreign exchange headwinds remain major concerns.

eBay Inc. Price and Consensus

 

eBay Inc. Price and Consensus | eBay Inc. Quote

Zacks Rank and Stocks to Consider

eBay currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include AMETEK, Inc. (AME - Free Report) , QuinStreet, Inc. (QNST - Free Report) and Stamps.com Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for AMETEK, QuinStreet and Stamps.com is currently pegged at 11.18%, 25% and 15%, respectively.

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