eBay announced today they are launching a new Escrow program for luxury watches and will have a final value fee adjustments in the watch category effective May 3, 2021
“eBay is on a multi-year journey to create the world’s best watches platform and we’re on a path to be the leader in the luxury industry. For 25 years, we have been the premier destination for brands such as Rolex, Omega, and Tag Heuer, and today, eBay is one of the largest marketplaces for high-end watches in the world. With our dedication to the luxury watches space, we see an even brighter future.”eBay Announcement
eBay said that it would be dedicating marketing dollars to attract more luxury watch buyers to its marketplace for the first time.
“eBay is allocating dedicated marketing dollars to attract luxury watch buyers to our marketplace annually for the first time. We’re marketing to watch enthusiasts with targeted campaigns that are resulting in unprecedented numbers of new and repeat luxury watch buyers. We also launched a dedicated social handle to reach watch enthusiasts with a community management team that focuses on this daily.”eBay Announcement
Luxury watches are already part of its eBay Authentication service that provides transactional trust for these high-value transactions. The company began authenticating luxury watches back in 2018.
Starting the week of April 20, eBay will add the new Escrow payment option via escrow through its partner Escrow.com for luxury watch listings priced at $10,000 and up. Sellers who plan to list such high-price watches are encouraged to sign up for the escrow service now by following this link.
eBay said it would cover the escrow services cost and there would be no additional fees besides the final value fee. But, eBay seems to be covering the cost of the escrow program by increasing final value fees on many watch sales, especially on those high-priced watches, which becomes effective on May 3.
eBay Adjusts Final Value Fees for Watch Sales
eBay provided the following tables to show the impact the new fee structure will have on sellers depending on the eBay store subscription they may have and if they use the eBay Managed Payments program.
New final value fees for non-Store and Starter Store sellers who use eBay to manage their payments
New final value fees for Basic, Premium, Anchor, and Enterprise Store sellers who use eBay to manage their payments
New final value fees for sellers who do not use eBay to manage their payments
(Third Party payment processing fees not included)
eBay reiterated that the watch category has shown significant growth on the marketplace and saw double-digit growth in Q4 last year over Q3. The full announcement from eBay explaining the new escrow program and final value fee structure is available here.
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