eBay's Fashion-Forward New Strategy

Designer Deals to be had 24/7 via Ebay.com

By Natalia Ignaczak

Forget the inevitable schlep to far away outlets come this holiday season. eBay has launched a new discount outlet channel for popular retailers. This shift in strategy from auction sales to traditional retail comes at a turning point in the firms’ business. Once doing most of its business through independent auctions, $9.7B is now done in fashion sales dominating the company’s annual revenue. Since 2008, 60% of users have opted for a fixed price purchase over bidding and nearly three quarters of customers are opting for entirely new merchandise and is being introduced under the eBay Fashions imprint. Fashion Outlet is entirely separate from eBay’s flash sale site Fashion Vault. eBay Fashion Outlet is what they are introducing, under the eBay Fashions imprint.

In addition, the opportunity lends itself to high-end retailers in that each brand maintains its image exactly as it wants on its page assuring that new customers with less discretionary income are not confused with mixed messages of luxury vs. cheapened merchandise. Furthermore, the majority of merchandise is not time or seasonally sensitive meaning no one will know which Spanx are last season’s or what Brooks Brothers tie was from fall or winter.

To date, over 200 brands have affiliated themselves with the site. Factory stores online at the Fashion Outlet include Brooks Brothers, Calvin Klein, Fila, Last Call by Neiman Marcus, Reed’s Jewelers and Tommy Hilfiger. Shoes are represented by Donald J. Pliner, Frye, Stuart Weitzman and many other favorites. The apparel sector is likely the most inclusive featuring a variety of designers from BCBG Max Azria, Elie Tahari, Elizabeth and James, and several department store veterans. Likewise, men are not forgotten either. The site includes Seven For All Mankind, Emporio Armani, and Hickey Freeman, among others. Some items are made exclusively for the outlet, just as in brick and mortar outlets, but the majority of merchandise was at one point sold for its full retail value.

eBay Fashions is making strides in becoming a destination for the astute online shopper. By employing the growing “pressure-to-buy” strategy, site users recognize the opportunities at hand and act upon them in a timely manner. The format presented is also simple to navigate and appealing to each brand. Operating costs are far less and online retailing is not affected by inclement weather or the time of day. In addition, each retailer can maintain their desired image with ease and show their entire inventory clearly. As an added bonus, site users can see clearly the original price, current price, and savings in dollars and percent. On the toolbar of each window, users can indicate selections my garment type, color, size and brand further simplifying navigation. All of these combined elements create a winning formula for the soon to be powerhouse of Internet discount shopping.