Will This E-Commerce Experiment Push eBay Stock Higher?

eBay (NASDAQ: EBAY  ) is taking window shopping to a whole new level this month. Forget virtual window-shopping. The online retailer is stepping out of its comfort zone and into New York's shopping scene, with what it calls "shoppable windows." eBay stock has gained a modest 1% so far this year, which is notably lower than rival online retailer Amazon's (NASDAQ: AMZN  ) near 7% gain. However, eBay's innovative launch of interactive storefronts could give the stock momentum going forward.

Shop it to me
eBay has collaborated with Fifth and Pacific (NYSE: KATE  ) , the parent company of Kate Spade Saturday, to create an innovative shopping experience. The e-commerce giant is testing 24-hour window shops in New York that let consumers browse and purchase items from Kate Spade Saturday. Free one-hour delivery to anywhere in Manhattan is perhaps the most exciting part of this new offering. While Amazon is testing same-day shipping in select cities, not even Amazon Prime members get the option of free one-hour delivery.

In eBay's words, "Our partnership brings the best of online shopping into the physical world, and rolls mobile technology, same-day delivery, and seamless digital payments into one end-to-end customer experience." That sounds promising. eBay's interactive windows will be available to New York shoppers from June 8 through July 7.

The partnership with Fifth and Pacific offers eBay a way to better connect with retailers while also interacting with consumers. Meanwhile, the virtual windows will help Fifth and Pacific get its new Kate Spade Saturday brand off the ground without opening physical stores, according to Reuters.

The future of shopping
Technology continues to change the retail landscape, and eBay is putting itself at the forefront of this change. On that score, it's refreshing to see eBay pushing the envelope with new innovations. I think this bold move into interactive shopping displays could pay off for the company down the road.

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  • Report this Comment On June 12, 2013, at 7:02 AM, TYPEONEGATIVE wrote:

    Keep falling for the gimmicks. I ,along with many others, have stated over and over, ebay is done.

    They did the "Want ads" experiment a few years ago, that didn't work. They did ebay local, ebay Live auctions, ebay this and that, all gone or not used.

    Ebay is Chinese sellers giving away .99 items, because they got a sweetheart deal with the post office, something we, U.S. citizens, don't get. We're almost all gone, sell your stock while you can.

  • Report this Comment On June 12, 2013, at 10:02 AM, NobodysFool2011 wrote:

    hbk72777 didn't mention, the sweetheart deal Chinese eBay sellers got was a joint venture between eBay and USPS at eBay's request.

    With this deal, a seller in China can send a small packet, say a CD, for under $2 to the US whereas it would cost a US seller nearly $8 to send the same package to China. In addition, the Chinese seller gets delivery tracking which is required for selling on eBay and it would cost a US seller nearly $30 for the same service to China.

    eBay is as un-American as it gets.Instead of assisting Americans to move their product around the globe in a poor economy, eBay has opened the door for cheap, Chinese manufactured goods and slapped hard working Americans in the face.

  • Report this Comment On June 12, 2013, at 11:54 AM, TMFDukenewkirk wrote:

    Hbk, advice born of emotion, lacking in understanding of the business you're trashing. E-Bay is so much more than a personal attack on your consumerist sensibilities. Folks would do well to study this business and all it entails before they follow your impassioned plea to flee from it.

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