News - 30 Apr, 2020

eBay and Afterpay have teamed up to help consumers

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The new partnership between the multinational e-commerce corporation eBay and the buy now, pay later (BNPL) platform Afterpay has come of great news. eBay has implemented another measure to aid consumers with their shopping needs, to be an easier process during the COVID-19 pandemic.


What is eBay and Afterpay?

This partnership gives consumers the opportunity to shop everything, from everyday essentials to pre-owned items in interest-free payments.

This syndicate between the companies is a first for the e-commerce corporation eBay and will allow it’s 40,000 Australian small and medium business partners access to the BNPL Afterpay platform, allowing consumers the opportunity to pay off their purchases in small instalments.

The agreement is also an innovative breakthrough for the Melbourne-based company, as the online partnership is giving Afterpay access to eBay’s 11 million exclusive monthly visitors.

Afterpay CEO and co-founder Anthony Eisen, stated in a media press release, “The partnership between eBay and Afterpay comes at such a crucial time, where Australians are wanting more control over their budget and to avoid high-interest debt traps. It’s also just in time to help small businesses.”

“Two in three Afterpay merchants believe it provides them access to new customers, so we are confident the tool will help small and medium businesses navigate these challenging headwinds.”

Echoing the sentiment, eBay Australia’s Managing Director, Tim MacKinnon in a media press release about the newfound partnership says, “Especially today, Aussies are relying on eBay to get what they need, in one place at great value,”

“Australian businesses need all the support they can get right now and offering Afterpay could be what makes or breaks a sale.”

Most importantly, eBay Australia will be minimising the extra financial strain off its sellers; by covering the transaction costs of using Afterpay itself. MacKinnon has said, “We are not passing on the cost to our sellers.”

“This follows the launch of our seller stimulus package where we’re offering existing eBay businesses deferred fees and no selling fees for three months to new businesses joining the platform.” MacKinnon commented on the other measures implemented to aid businesses.

The items you might benefit from purchasing

As Australians have turned to self-isolation, they are driven to online shopping in order to access all the tools they need, essential and non-essential goods and services as many brick and mortar stores have recently shut their doors to limit the spread of the COVID-19.

In recent weeks, eBay and Afterpay have commented on the increased demand they have experienced, in a number of retail categories such as technology, home office supplies as well as entertainment measures and fitness equipment, as Australians across the country embrace the self-isolation period enforced by the Federal Government.

As more people have been working or studying from home, the data from eBay reveals that the sales of computer monitors have seen an increase of 182%.

Fitness equipment has also increased in sales, with dumbbells having an increased profit rate of 854%.

As people aim to keep their bodies and minds active during isolation, the largest increase of sales, however, has been paint with number sales increasing by a substantial 3746%.

Related: Bunnings DIYs to get you through self-isolation

How does Afterpay work on eBay?

Now, under Afterpay’s scheme, consumers can shop across millions of items on eBay’s platform and break up their total purchase cost into four equal instalments. These instalments are then paid back over an eight-week period and, so long as they are paid on time, remain completely interest-free.

The only fees are for late payments, and Afterpay helps consumers avoid this by emailing your payment schedule and sending you notifications. The brand pride themselves on helping consumers with their budgets and your orders will ship depending on the business just like any other payments.

If you have your eBay account, all you have to do is browse the available products. eBay has explained that Afterpay is available for items listed in most categories, between AU $1 – $1,500. If that particular item has Afterpay available, you’ll see it as a payment option on the listing page and when you are checking out.

Related: Home improvement and DIY items top Aussie spending lists

Other competitors

Recently Amazon Australia and another Australian buy now, pay later platform Zip Co, also entered in a partnership. Zip Co confirmed that both its buy now, pay later service, Zip Pay and its personal loan service, Zip Money, will be affiliated with Amazon Australia.

The partnership confirmed to be a great strategic agreement as Zip shares increased as much as 24%. Amazon said it offers instalment payment options for customers in the US, UK, Germany, France, Japan, Turkey, Mexico, Brazil and India and that some of these have used external parties.

Words by Ece Demir

Sources:

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