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EBay, Shopify Strike Partnership for New Sales Channel

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eBay Inc. (EBAY - Free Report) and Shopify (SHOP - Free Report) yesterday announced a new sales channel, an integrated platform that offers Shopify merchants a host of new facilities.

The new channel will have a wider roll-out this fall and is available primarily to U.S. merchants selling within the nation.

Investors will surely keep an eye on moves like this to see whether they can boost eBay’s stock that has underperformed the Zacks Internet - Commerce industry over the last one year. It gained 40.7% compared with the industry’s gain of 51.5%.

Getting Access to More Buyers and Sellers

The integration will allow Shopify sellers to synchronize inventory information, sell products ordered on eBay and view eBay buyer messages directly from Shopify accounts. Shopify will now get access to eBay’s more than 169 million active buyers.

eBay, on the other hand, is poised to benefit from added add selection  from a huge Shopify seller base.  Besides eBay, Shopify’s growing list of sales channels includes companies like Amazon (AMZN - Free Report) , Facebook (FB - Free Report) Pinterest and BuzzFeed.

eBay Inc. Revenue (TTM)

eBay Poised to Boost Marketplace

eBay is currently re-platforming itself by building product catalogs on structured data, enhancing mobile platform, rolling out new browse inspired shopping journeys, rejuvenating customer-to-customer (C2C) business and strengthening its brand.

With the new move, eBay is offering some of its platform features to Shopify and getting access to the latter’s sellers in return. We believe that eBay is trying to boost its Marketplace platform through this move.

Opportunity to Increase Focus on Small Businesses

Recently companies like Amazon and Alibaba have ramped up their focus on small businesses and entrepreneurs. eBay has been revamping seller policies to help small- and medium-sized sellers and better reward those who provide great service to buyers.

Since Shopify targets small businesses with its customizable store templates, sales analytics, marketing tools and inventory management, collaborating with it could open similar opportunities for eBay, going forward.

To Conclude

With the new move, eBay is looking to boost its marketplace platform and tap more small and medium sized business while Shopify continues with its unique strategy of converting competitors into partners while.

These strategies make sense as more and more companies are jumping into the e-commerce space, thus intensifying competition.

eBay currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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