eBay, the e-commerce giant has been witnessing a surge in the luxury goods market, specifically in the Middle East.
“We have seen significant growth coming in from luxury goods, luxury handbags,” Vidmay Naini, General Manager – India, South East Asia and eBays Global Emerging Markets said in an exclusive interview with Arabian Business.
Key details were unveiled regarding the company’s strategic focus on expanding in emerging markets. While online retailer’s plans encompass regions like India and Southeast Asia, the spotlight shone on the UAE where the company has experienced remarkable growth.
Naini attributed this trend to the increased digitisation and openness of consumers to online purchases. According to data from the online marketplace, the number of active sellers in the UAE from January 1 to November 2023 has shown double-digit percentage growth.
In light of this, Naini revealed that a ruby worth $23,000 was sold from the UAE, being one of the biggest transaction of a luxury good from the region on eBay.
UAE top five items sold in the last 52 weeks
- Certified ruby – $23,000
- High voltage tester – $20,000
- Ultrasound machine – $20,000
- Blue sapphire – $19,000
- Home theater projector – $16,000
With increasing demand in the sector comes questions of product authenticity, when asked about how eBay plans to tackle this, Naini said, “We have something called as authenticated eBay guarantee on that we have launched. For example, if you’re selling jewellery, on eBay, if it’s greater than $300, you will get a certified authenticity from GIA, you cannot get better than that, right?”
Additionally, the platform offers authenticated guarantee for sneakers, watches, handbags and more.
He expressed optimism about the long-term opportunities for small and medium-sized enterprises (SMEs) in the region, particularly in Dubai. The city’s infrastructure and evolving policies have created a conducive environment for eBay to enable SMEs to sell globally.
Top five countries UAE sells to on eBay:
- Australia
- Canada
- Germany
- UK
- US
“We have got close to 1.6 billion listings live on our site, so it is a massive marketplace,” Naini said. In shaping e-commerce trends, eBay focuses on creating awareness, building infrastructure, and providing training to enable sellers to reach a global audience, he explained.
While discussing competition, Naini underscored eBay’s differentiating factor as an open marketplace that empowers SMEs to sell directly to consumers. He emphasised the company’s steadfast commitment to avoiding a 1P model, effectively sidestepping any direct competition with its own sellers.
The online marketplace focuses on enabling SMBs to “sell to the world” by creating awareness, “how many of them are aware that you can sell to the world sitting in your house?” he said, interestingly stating that an average American household has anywhere between $300,000-400,000 worth of goods that can be sold.
Looking toward the future of the industry in the region, Naini acknowledged that eBay has only begun to scratch the surface of its potential in the UAE. The company actively participates in industry events, establishes a robust local presence, and seeks valuable feedback from local ambassadors to tailor its approach to the unique market dynamics.
As COP28 approaches, eBay’s commitment to sustainability was touched upon, Naini highlighted the platform’s sale of refurbished items as a contribution to environmental responsibility.
While specific financial details were not disclosed during the interview, the general manager encouraged interested parties to visit the online online marketplace’s official website for publicly available information.
Why eBay?
When simply asked why eBay, Naini said that “eBay gives you global reach, providing access to 190 markets. Number two, it gets it has close to $80 billion of demand, which you will definitely not get in your neighbourhood.”
He confidently concluded saying, “and the fact that we have been here for 27 years proves that a lot of people trust us.”
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