Fintech & Ecommerce

eBay Acquires Certilogo to Boost Brand Authentication

eBay announced the acquisition of the authentication company Certifogo.

eBay Acquires Certilogo to Boost Brand Authentication

Source: Pixabay.com

On Wednesday, May 17, a press release was published on the occasion of the acquisition of the authentication firm, which contains information that the implementation of this transaction provides eBay with access to the Certifogo technology platform. Through the use of this platform, brands and designers can manage the life cycle of clothing. Consumers also get the opportunity to verify the authenticity of the purchased goods.

The press release states that the implementation of the transaction strengthens eBay’s status as a reliable digital space for buying clothes and purchasing fashion accessories that enjoy a high level of demand. Also, this action of an e-commerce market player represents a strategically important investment in the category of popular clothing manufacturers’ products. The company is convinced that the appearance of the possibility of determining the authenticity of the goods will strengthen the confidence of buyers in interacting with eBay, as their choice becomes more conscious.

This transaction is currently in the process of implementation, the completion of which is expected in the third quarter of this year. There is no information about the cost of acquiring a brand authentication firm. The deal became known a few weeks after eBay announced its intention to increase its share in the luxury sector. The readiness to implement this plan was announced after Cudoni, the resale platform, decided to end the interaction with the company.

eBay has launched a Certified by Brand program that will provide customers with a wide range of luxury items that either belong to the category of popular products or are collectible. The company also provides a guarantee of authenticity within the framework of this offer.

Tirat Kamdar, eBay’s global general manager of luxury, said in April that certified products on the resale market are a chance for brands and authorized retailers.

In 2021, the company introduced an authentication service for luxury bags as part of an expansion of its genuineness guarantee program. Last month’s earnings report witnessed double-digit sales growth in the luxury sector compared to the fourth quarter of pre-pandemic 2019. Positive dynamics of demand were recorded in such categories as bags, watches, sneakers, and jewelry.

In 2022, in the structure of products sold, more than 60% of watches, more than 50% of bags, and more than 30% of jewelry belonged to the category of use.

As we have reported earlier, eBay teamed up with InPost in the UK.

 

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.