eBay Inc. (EBAY - Free Report) recently entered into a partnership with the U.S. Department of Commerce (DOC) for the expansion of trade and investment in the world's largest economy.
The giant online marketplace signed a memorandum of agreement (MOA) with the Department’s International Trade Administration during a roundtable event, which is valid until Dec 2014.
The partnership aims at spreading awareness about the economic advantages of trade and commerce and highlighting the role of small and medium sized enterprises (SME) in the growth of America’s export economy.
Trade keeps the economy open, strong and competitive. It enables companies to diversify their portfolios and also helps small companies to flourish. It also encourages investment and job creation, thus enhancing economic growth.
For ages, large-cap businesses have had a competitive advantage in the global market due to their strong workforce and finances. However, even in today’s revolutionized global marketplace, SMEs experience a number of hurdles like shipping costs, safety issues and huge amounts of custom duties.
eBay’s innovations have been successful in eliminating these obstacles. Thus, the alliance specifically aims to generate opportunities for struggling SMEs to survive as they also play a significant part in augmenting America’s globally-connected economy.
eBay is one of the world's largest online marketplaces, so it is directly affected by the volume of trade going on in the country. Goods and services are sold on the platform by a large number of individuals and small businesses all over the world successfully. Other than the U.S., it provides country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.
As per the partnership, the Department also plans to train traders and businesses through national export programs.
eBay has taken all the necessary measures, beginning with the fixed price format to wooing big sellers and customers, improving technology and navigation of its properties, investing in better fulfillment services and focusing on mobile customers to boost profitability. Its drive to provide complete online solutions for traditional retailers should further add to its growth going forward.
It recently announced the acquisition of a 3D apparel simulation company, PhiSix Fashion Labs. Also, PayPal, its digital payment arm announced a partnership with Deutsche Telekom related to direct carrier billing.
Currently, eBay holds a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same sector include Priceline.com Inc. , Liberty Ventures and Netflix, Inc. (NFLX - Free Report) . While Liberty Ventures sports a Zacks Rank #1 (Strong Buy), priceline and Netflix hold a Zacks Rank #2 (Buy).