New payment feature: Ebay ads are changing – the economy

The Ebay Classifieds second-hand portal has seen amazing growth. Many Germans use the site, but very few of them should know that Ebay ads have now become the most visited online portal in Germany: According to AGOF advertisers in advertising, the site was ahead of T-Online and Focus Online in September well ahead of T -Online and Focus Online. Google, Youtube or Amazon do not count here; If you consider all the websites, Ebay ads are still in eighth place, two places before Facebook.

The payment function should facilitate shipping

In the future, the number of users could continue to grow as the new payment feature aims to make Ebay ads more attractive. From today, users will be able to pay for items directly through the web for the first time. As used goods are usually handed over to those who pick them up themselves, they have usually paid in cash at the time of delivery. But now it should also be easier and safer to send articles.

Shipping has also been possible so far, but the provider and the buyer must always agree on payment options. With the new payment feature, buyers should also get their money back if they do not receive the item or if it differs significantly from the description. The amount is deposited in a restricted account for up to 14 days and paid out only after confirmation of receipt of the item. This applies to purchase prices up to 1000 euros.

The new feature is initially only available in a few categories, such as “Toys”, “Mobile Phones and Phones” or “Laptops”, but needs to be gradually expanded. Bank transfers and credit cards are initially available as payment methods. The use of the new feature is voluntary – buyers and sellers can still agree on other payment methods.

“By implementing the payment function, we are responding to the wishes that our users often express,” says Paul Heimann, CEO of Ebay Classifieds. In fact, there is great interest in long distance trading. In the category of infant and children’s clothing, which is one of the largest with almost five million advertisements, 85 percent of offers already include the label “possible transport”. In the case of mobile phones, however, it is only seven percent – perhaps for security reasons. “The ability to process payments through the platform offers a plus for the security of both buyers and sellers,” says Heimann. The new feature will also benefit users who can’t pick up items on the web. “We’re still focusing on neighborhood retail.”

However, with the new option, Ebay ads will be more like the previous mother. Until now, there was a clear division of labor: items were traded on Ebay regardless of their location, and now mainly new goods from commercial suppliers. In the case of advertisements, on the other hand, there was a second-hand shop in the immediate vicinity.

Ebay sells advertising portals for 9 billion

It’s probably no coincidence that Ebay’s advertising is now emancipating. Because in the summer, Ebay separated its advertising division and sold it to the Norwegian company Adevinta. The Scandinavians pay $ 9.2 billion for the division, which includes other portals such as Adevinta becomes the world’s largest provider of online advertising.

The takeover is not yet complete, it is planned for the first quarter of 2021. After that, Adevinta will also see how the new acquisition can increase revenues. That’s manageable so far: In the second quarter of 2020, Ebay Classs had a total turnover of $ 201 million.

Because the marketplace is usually free, in most categories, private sellers only have to pay fees for placing 50 ads. Thanks to the new payment option and the protection of the buyer, there is a new source of income, because the buyer has to pay a fee in a low single-digit percentage range. In addition, Adevinta increasingly wants to rely on commercial providers. Emphasis is placed, for example, on brokers, because a large number of properties are now offered on the classifieds portal.

Will Ebay Classified Ads change its name?

Another big issue that will arise after the takeover is the future name. For a long time, the portal will still be called Ebay ads, but industry experts assume that Ebay will only allow use for a transitional period of several years.

Then you will probably have to find someone else – either a brand new brand or a brand from a previous portfolio. The Norwegians have already connected a network of 30 markets around the world, including the largest French advertising portal LeBonCoin and the Austrian provider Shpock, which is also active in this country. The Gumtree and Kijiji portals are now also taken from Ebay – it also once existed in this country. Until the renaming of Kijiji in 2009 – in Ebay Classifieds.

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