eBay Celeb Charity Auctions Could Help Boost Traffic
eBay (NASDAQ:EBAY) has historically been active in the field of corporate social responsibility through initiatives like Giving Works. [1] However, with the launch of eBay.com/celebrity, [2] the company may be in a win-win situation, gaining both in good PR as well as web traffic. eBay competes in the e-commerce segment with other giants such as Amazon (NASDAQ:AMZN) and Alibaba.
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Traffic for Celebrity-based Merchandise Can See An Upside
eBay.com/celebrity provides users with products/services such as concert tickets, celebrity-specific merchandise as well as interaction opportunities, all of which would be offered by eBay as a celebrity auction. Not leaving any stones un-turned, eBay has already managed to rope in big names from Hollywood and the U.S. music industry as their partners in this initiative.
Being a charitable venture, eBay would not be staking claim to any revenues generated through these auctions. However, eBay does stand to gain in web traffic as users participating in the auction also end up searching for other celebrity-related merchandise separately. This can provide an upside to the listing-to-sales conversion rate.
We have a revised price estimate of around $39 for eBay’s stock, which is about 19% above the current market price.
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