Is eBay becoming an online brand name outlet mall?

eBay The Brand Outlet
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This week eBay announced it is launching its “Summer Brand Outlet,” a new outlet shopping destination that offers deep discounts on top brands.

Shoppers can visit the online outlet at eBay.com/brandoutlet, which offers daily discounts of up to 70 percent off brands, including Bose, Samsung, Adidas, Rolex, Tiffany & Co., and DeWalt – all with fast and free shipping.

To celebrate the launch of the “Summer Brand Outlet,” eBay is releasing “Hot Deals for Hot Days,”  a new wave of thousands of amazing deals across every category, featuring some of the lowest prices of the season.

“Our new outlet gives eBay customers amazing discounts on quality products from trusted brands they know and love. The new destination offers shoppers who love the thrill of the hunt for discounts, big savings during the prime summer shopping season across dozens of categories from electronics, apparel, shoes, accessories, health, toys, home to appliances.”

Jay Hanson, VP and COO, Americas

Online outlet mall

This is really the first time eBay used the word “outlet” for a sales campaign.

For some time now, eBay has been promoting brand based sales with the brand’s permission that usually included products that are no longer in the brand’s current catalog.

The strategy here is that in the US most major brands require MAP pricing (Minimum Advertised Pricing) for current catalog products. However, for discontinued or refurbished products, MAP pricing policies do not apply, therefore big discounts can be offered.

In the physical retail world, the strategy of selling excess or old inventory through outlet malls allows brands to offer “huge” discounts over original retail prices.

Consumers get a good deal, even if it is on a discontinued model of the product, and the brand can liquidate old inventory to cash. It is a win-win for both sides.

Now it appears eBay is becoming an online outlet for some brands either through the brand operating an eBay store or through brand authorized sellers that liquidate old catalog items.

With millions of shopper flocking to outlet malls, there is a great opportunity for eBay to become THE online outlet mall destination.

Seller opportunity?

Sellers who have access to brand name products may find an opportunity with this outlet strategy.

If more buyers flock to eBay to look for “outlet type” deals, sellers could negotiate with brands to purchase up remaining inventory of old products at a good price and offer those items exclusively on eBay.

Especially in niche categories, some brands may prefer to “outsource” the inventory liquidation process instead of running their own eBay store.

Therefore, sellers should look at their product niche and consider working with brands in their industry to become an outlet seller.

READ MORE: eBay announces Crash Sale for July 15 taking a dig at Amazon


Have you purchased old inventory from a brand and how has it worked out for you? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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