eBay has extended its watch and sneaker authentication services to handbags over $ 500
eBay is expanding its existing authentication efforts to include some handbags in addition to watches and sneakers over $ 2,000 with price tags over $ 100, as sales within its “luxury categories continue to grow. gain momentum, “as indicated by” the last quarter quarter growth. With such growing demand in mind, eBay, headquartered in San Jose, Calif., announced this week that it was expanding its authenticity guarantee service to include “new and used handbags sold for over $ 500 from 16 major luxury brands” – from Gucci and Goyard to Louis Vuitton and Hermès, with the aim of “providing an experience more fluid and accessible that allows buyers to buy and sellers to sell luxury handbags with confidence ”.
In the wake of the rollout of authentication services for luxury watches and sneakers last year, eBay said in a statement this week that it has seen “significant growth” in these categories. Its sneaker business grew at “a triple-digit rate year-over-year for several quarters, while its watches business accelerated from 16% to 38% in the first quarter” of this year. Meanwhile, eBay says that “focusing on these core verticals has, in turn, increased sales in other categories as well,” such as handbags. Tirath Kamdar, who is the CEO of luxury at eBay, echoed the sentiment, pointing to “an iconic Hermès Birkin bag [that] recently sold for $ 98,000 ”and the burgeoning success of the 26-year-old company’s watch business, which“ doubled in the last quarter ”.
As an “extra level of confidence” he offers to buyers and sellers, Charis Marquez, vice president of fashion at eBay, says the effort to ensure authenticity “has changed the way people shop. and sell luxury items on eBay ”. in particular by stimulating the increase in sales of handbags. On average, the company says there are around 1.41 million handbag listings on its platform every day, with five handbags sold every minute. As of 2020, eBay says it has sold over 2 million handbags in North America, with sales of bags from brands like Louis Vuitton, Gucci and Prada up 31% year-over-year .
Strengthening its Guarantee of Authenticity initiative, eBay revealed on Wednesday that all handbags over $ 500 from Louis Vuitton, Chanel, Gucci, Hermès, Saint Laurent, Céline, Dior, Prada, Fendi, Goyard, Burberry, Chloe, Valentino, Givenchy, Balenciaga, and Bottega Veneta that are bought and sold in the United States “will be vetted and verified by eBay’s team of professionally trained authenticators, using detailed physical inspection and ‘state-of-the-art technical equipment in a state-of-the-art facility “.
While the newly announced authenticity efforts will likely help eBay further drive sales of luxury goods on its platform, especially as consumers increasingly feel comfortable buying products from second-hand luxury and doing so as part of e-commerce (existing trends that have accelerated amid the COVID-19 pandemic), there could be a double-edged sword at play: such efforts could put the company in place for potential legal issues along the same lines as The RealReal (“TRR”), for example, which was sued by Chanel in November 2018 on the grounds that it allegedly sold a number of Chanel-branded bags he “claims[ed] be authentic but [were] in fact a counterfeit.
One of Chanel’s main complaints in this case is the practice of the allegedly “attempted TRR”[ing] deceive consumers into mistakenly believing that [it] has some kind of endorsement or association or affiliation with Chanel or that all Chanel branded products sold [on its website] are genuine ”, which Chanel claimed is not. Specifically, Chanel’s attorney argued that although TRR advertises its authentication efforts, “the only way for consumers to absolutely ensure that they are in fact receiving genuine Chanel products is to ‘buy these products from Chanel or an authorized Chanel retailer. ”
The brand has since doubled its efforts on this point, further asserting that “training and knowledge regarding authenticating authentic Chanel brand products can only reside within Chanel.” In other words, “Only Chanel, himself, can know what is authentic Chanel”, and what is not, a claim that has been the subject of much criticism from the TRR.
This case is still pending in a federal court in New York, with both parties agreeing to temporarily suspend court proceedings in order to participate in private mediation. In an order dated April 5, Judge Gabriel Gorstein of the United States District Court for the Southern District of New York issued a joint stipulation and order staying the process of trademark infringement and infringement, false advertising and of unfair competition for three months, aimed at securing the titan of haute couture and the pioneer of luxury resale to settle their ever-growing legal disputes amicably and without the need for a trial.