Digital Wine Ventures (ASX: DW8) Reach will expand further after the online platform Wine Depot reaches an agreement with eBay.
The duo has signed a memorandum of understanding that opens the door for Australian wineries to negotiate a partnership that will allow them to list their products on eBay without setting up an account.
Products are expected to be automatically uploaded to eBay via a new part of WineDepot’s platform called Direct.
Direct was founded to allow suppliers to sell their products through a wide range of direct sales channels.
Under the contract, WineDepot will receive, pack and deliver orders generated on eBay.
Meanwhile, eBay’s 12 million monthly unique visitors can purchase from multiple suppliers at the same time, while offering same-day and next-day delivery with those services available.
Increased sales potential for Australian wineries
Regarding the proposed partnership, Digital Wine CEO Dean Taylor said it would help local producers increase sales to consumers.
Tim MacKinnon, managing director of eBay Australia, pointed out that Australian companies were “in a difficult situation” due to wildfires, severe borders by COVID, and restrictions on the number of venues.
“EBay exists to create economic opportunities, so in partnership with WineDepot, local wine producers (many of whom are in rural areas) are expanding their online services and the long-awaited economics in their local areas. We are now able to give a boost, “added McKinnon.
The MoU terms stipulate that WineDepot will pay eBay a fixed percentage of marketing fees. This applies to each sale made by WineDepot suppliers through the eBay platform.
However, there is no minimum charge or expected volume specified in the contract.
As a result, Digital Wine said it was “impossible to predict potential revenue” from the proposed partnership.
If the partnership is successful, Taylor said it will help WineDepot expand into other global markets after establishing its capabilities.
Digital Wine Ventures’ Wine Depot Platform for Selling Products Through eBay
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