Authorized eBay retailer deltatecc: This is how D2C works for brands
Anyone who wants to be successful on online marketplaces like eBay has to build trust - especially when selling branded products. One way to position yourself as professional and reliable is through official authorization by a brand on eBay.
But what exactly does that mean? What advantages does it bring? And how does the authorization process work? In this episode, we explain why working with brands is worthwhile, how you benefit from it, and what steps are needed to be authorized as a seller on eBay.
Our guest provides helpful tips and exciting insights: Andreas Müller, CEO and co-founder of deltatecc. deltatecc is a full-service provider and works with major brands such as Kitchen Aid and Bosch, among others.
Want to know how you can build long-term partnerships with brands through authorization? Then listen in now!
**Important Links**
- deltatecc-home
- More information on authorization for sellers
- eBay for Business on Facebook
- eBay for Business on Instagram
- More info on the eBay podcast "Alles top. Gerne wieder!" and our podcast hosts
** Chapter markers **
- 00:00:00 to 00:02:53: Intro
- 00:02:53 to 00:04:07: Who is deltatecc?
- 00:04:07 to 00:05:19: What is the authorized seller program?
- 00:05:19 to 00:18:07: What advantages does authorization bring for sellers and brands? And how does the authorization process work?
- 00:17:42 to 00:18:07: Andreas’ forecast for the future of marketplaces
- 00:18:07 to 00:19:28: Outro
Isabell : Anyone who wants to be successful on online marketplaces like eBay has to build trust. Especially when selling branded products. One way to position yourself as professional and reliable on eBay is through official authorization by a brand. But what exactly does that mean, and what advantages does it bring? How does the process behind it work? In this episode, we explain why working with brands is worthwhile, how you benefit from it, and what steps are needed to become authorized as a seller. Let's get started!
Isabell : So for the brand, if it wants to go to marketplaces like eBay in the D2C area, you have to be aware that you need a lot of infrastructure. And this whole package, from IT to customer service to logistics and returns, can be relatively expensive for one brand or another to set up. And in that case, it can be more interesting to go through an authorized seller or a service provider like us.
Lisa : Welcome to "Alles top. Gerne wieder!", the eBay podcast all about retail and e-commerce. I'm Lisa Haak and together with my host Isabell Butterwegge, I'm excited to talk about an exciting topic: authorized sellers on eBay.
Isabell : Lisa and I are responsible for this topic at eBay. So we know quite a lot about it. But because we always like to share real-life experiences with you, we invited Andreas Müller to the studio. Andreas is CEO and co-founder of deltatecc.
Lisa : If you don't know deltatecc yet: they work with major brands such as Nespresso and Bosch, for example, and are therefore a perfect example of how sellers can build long-term partnerships with brands through authorization.
Isabell : Since 2018, he has also been on the board of the Bundesverband Onlinehandel e.V., or BVOH for short. As president of the BVOH, he is particularly committed to the rights of sellers on online marketplaces. But first of all: welcome, Andreas!
Andreas : Thank you very much for the invitation. Nice to be here.
Lisa : But before we dive into the topic: what's a fun fact about you, Andreas? And I know you love this question.
Andreas : Exactly, back in the early days of eBay there was a request from the Catholic Church that came to us via eBay and wanted a whole lot of prepaid phones at the time, and we were a specialist on eBay for that back then as well. Today, prepaid phones aren't quite such a big topic anymore. And in that context, the church also asked us whether we could deliver a white phone. And back then there were no white phones on the market yet. And we knew that Sagem in Paris had such a phone, and we flew this white phone in for a very special guest at World Youth Day 2005. And he probably had a lovely phone from us for quite a while, which we also sell on eBay.
Isabell : And who was the guest?
Andreas : The guest was probably His Holiness, Pope Benedict.
Isabell : Funny!
Lisa : Suddenly we can say the Pope bought his phone on eBay?
Andreas : N...
Lisa : Okay... Then maybe at the beginning let's move on to another unusual question: deltatecc is based in Saarland. That's not unusual yet. But what's going on in Saarland that so many major e-commerce sellers are based there? You're not the only ones there.
Andreas : Exactly, in Saarland you have the effect that you have a very compact or very small regional market where you can grow very little. And for sellers, eBay or e-commerce as a whole offers a huge opportunity to become active nationwide or across Europe. Then we have a very favorable location towards France, Luxembourg, Benelux. And yes, I think that's one of the reasons why people from Saarland are quite successful in e-commerce.
Lisa : I've known you for a couple of days now, I would have expected something like: "Because we're just good at it." But that was an answer I'll take.
Andreas : Good!
Isabell : Yes, you also founded deltatecc in Saarland. Can you briefly summarize what services you offer exactly?
Andreas : We started deltatecc back then as a mobile phone retailer and have now developed into a full-service provider or service provider for brands. We don't just offer the classic buying and selling of goods, but support brands in the marketplace environment in positioning brands successfully on marketplaces and, among other things, on eBay.
Lisa : And that's exactly why we invited you here today. Isabell and I are a bit afraid that you actually know more than the two of us, even though we deal with the topic. We want to talk about authorized sellers on eBay. And Isabell, maybe let's start with some context: what are authorized sellers, or what do we understand by that on eBay?
Isabell : Yes, authorization of sellers is part of our brand program. That means brands can tell us which sellers they want to authorize with us. And then these sellers get the brand logo displayed on their listings on eBay, both on the search results page and on the item page. And by now a few other services have been added, such as Brand Funded Advertising, where brands can also finance advertising for sellers. In a way, sellers enjoy a slight preference, I would say, and because they get this badge from the brand, the listings also seem more trustworthy to buyers.
Lisa : And Andreas, you're authorized for many brands. What's the biggest advantage of the authorized seller program for you?
Andreas : Yes, you can really stand out from other sellers. The customer sees right away that I'm buying from an authorized seller, and maybe has more trust as a result. We sell a lot of much more expensive products, technical products, where the customer wants the assurance that they're buying from a seller authorized by the brand and that the corresponding warranty and service benefits are also behind it.
Isabell : But surely it's not enough just to offer great service. How did you manage to get so many brands to authorize you?
Andreas : Exactly, over the years we've managed to convince brands to sell on eBay. We approached brands, convinced them to become active on eBay with us, to use the authorized seller program and to present an appropriate presence there. So it's always very important to us that the item descriptions are very informative, very extensive, that customers are well informed. So, what a good salesperson in traditional retail represents, we, for example, represent on eBay with the item descriptions and therefore also with the brand presentation.
Lisa : You just said something really important: you approached the brands and asked to be authorized. And I think that's something we need to clarify again: for us, the authorized seller program is something that comes from the brand. That means we at eBay are in the partnership, in the relationship with the brand, and the brand can determine the sellers it wants to authorize on eBay according to criteria it chooses itself, over which we have no influence. And of course that works really well with the brands we already have a good connection with. But I know that you, Andreas, have also done a great job for us at eBay in making brands aware of it in the first place and then asking for this authorization.
Andreas : Yes, it actually happened today: I was at a trade fair, we convinced a brand to use the authorized seller program on eBay in order to present the brand better as well. That's currently in the scooter sector, but there are many brands that we convince to take the path to eBay with us. And with the brand, it's also the case that they have refurbished goods that are ideal for eBay. And yes, together with eBay we help onboard the brands there.
Lisa : And if a brand comes to us now and wants to authorize Andreas and deltatecc, for example, how exactly does the whole thing work?
Isabell : Exactly, the process is actually pretty straightforward. So in this case, the brand basically just tells us that they want to authorize Andreas, and then this is usually implemented within two days. The only prerequisite for the brand is to sign a so-called logo usage agreement with us, because of course we then display the logos accordingly on the site. So that's the requirement. But once that's done, the activation for additional sellers always works super quickly.
Lisa : And which brands are allowed to take part in the program and then also authorize sellers?
Isabell : As a rule, they are not own brands that take part in the program. And they are brands that have relevant search volume, both on eBay and on external search engines, and thus generate relevant sales in the market. And of course the criteria look a little different in each category.
Lisa : Andreas, when many brands, as they deal with their D2C, i.e. Direct-to-Consumer strategy, get to the point of deciding whether I want to sell on the marketplace myself or go through my authorized sellers or intermediaries? What do you see as the approximate advantages or disadvantages?
Andreas : So for the brand, if it wants to go to marketplaces like eBay in the D2C area, you have to be aware that you need a lot of infrastructure. I need the IT processes, which I can buy externally. But I also need customer support, which on eBay is a bit more specific than it might usually be, tailored to the marketplace. You need logistics services, especially logistics services tailored to end customers, including the returns process. And this whole package, from IT to customer service to logistics and returns, can be relatively expensive for one brand or another to set up. And in that case, it can be more interesting to go through an authorized seller or a service provider like us.
Isabell : And what exactly do you offer brands there?
Andreas : We always offer our brands the full-service package, which means we offer the brand everything, they only need to provide us with the product and the briefing about what they want. And then we implement that for the brand on eBay accordingly.
Isabell : Lisa, brands can now not only benefit from the authorization of sellers with us, but also have access to the brand program. Can you put that in context for us again, what exactly they can do there?
Lisa : Exactly, the brand program is much more extensive than our authorized seller program. Internally, we like to describe it very much like a buffet, where brands have the opportunity to help themselves to whatever at the buffet fits their strategy or whatever they feel like. And our brand program is especially focused on authorizing sellers, presenting the brand in a special brand context, which we call the showroom. Of course, they can also use our verified rights owner program on eBay to ensure that the brand is properly represented. But we also offer marketing options and advertising solutions directly for brands. And this is independent of whether they sell directly as a seller or indirectly. For example, with our brand funding options in the advertising area, brands now have the new opportunity to run advertising campaigns tailored to their brand via authorized sellers. And what has recently become part of the brand program is our brand cockpit. In our brand cockpit, we give brands the opportunity to log in themselves and gain a little more control over their business on eBay. Because as a brand itself, especially if you don't sell yourself, you don't even know what is actually being sold on eBay under my brand? So how much revenue am I making with which product? At what prices is it being sold? Which countries am I selling to? What are the different item conditions? But all of that is important insight for brands, especially if you also want to set up an advertising strategy on top of that. And with our brand cockpit, we give brands exactly this access.
Isabell : So brands have quite a lot of options with us on the marketplace. And with you, Andreas, selling on marketplaces is actually also very easy and accessible for brands. What are the main arguments you discuss with brands to go to marketplaces in the first place?
Andreas : Yes, marketplaces offer huge reach. If you look at e-commerce today, estimates say that over 70% of revenue is sometimes on marketplaces, depending on the product category. And marketplaces naturally have the advantage of already having the customers. And then it is simply a matter of presenting these products to the customer accordingly and thus generating huge reach and also generating sales. That's always the important thing. I may book a lot of advertising in many search engines, but of course I want sales, and marketplaces guarantee sales.
Lisa : And when you talk to a new brand, at what point does eBay and the authorized seller program come into play?
Andreas : Actually relatively early on. We talk to brands through the marketplaces: what options are available? Some marketplaces are better or less suitable for the brand. And when we notice that a brand wants to get more deeply involved with eBay, we also present the authorized seller program there and tell the brand what options it has there.
Isabell : So you also define the marketplace strategies together with the brands. What's your view on multichannel there?
Andreas : We have a lot of experience in the marketplace business. We've been doing marketplaces for almost 25 years and have the experience of which products work quite well on which marketplace, and we then give the brand a better sense of where they could be successful.
Lisa : And you're also super well connected in e-commerce and talk a lot with other sellers who are also part of our brand program or our authorized seller program. How do you split up the brands there? So do the brands then work with all of you sellers, or do the brands usually pick a preferred partner?
Andreas : It depends on the brand. Very large brands have several sellers, maybe also with several special focuses, where one seller handles one type of product, another seller handles another type of product. And yes, it's a normal competition. The sellers make sure that each one gets the best out for themselves.
Isabell : But that is actually another point that we should highlight. So authorization of a seller is not exclusive. So a brand can certainly authorize as many sellers as it wants.
Andreas : Exactly, so it may be that a brand authorizes only one or two sellers. But it may also be that a brand authorizes 10 or 20 sellers. That is up to the brand's strategy, how it handles this topic. And it always depends on how big a brand is, how widely distributed a brand is. These are all aspects that play a role.
Lisa : You talked about the challenge for brands in selling directly at all. We can all imagine it: probably easier to ship a pallet than to think about how my own product gets to the end consumer. But if we look at eBay again, what problems are you solving directly on eBay for brands when you act as authorized sellers for them?
Andreas : It starts with the eBay listing, which is not entirely trivial. On eBay, every product is an eBay listing, which must have an item description attached. That's the first point where many people first have to get used to it. It starts with the item text, i.e. the item title, which has to be described correctly. Maintaining all the attributes requires IT support. Many brands cannot provide this data from their structured systems such as SAP or similar. And that's where we come in and shorten the process. Often it is also the case that a brand may want to go on eBay quickly and not first go through an onboarding process lasting half a year or three quarters of a year. With us, it takes just a few weeks to implement this onboarding on eBay.
Lisa : And I think what's also important to mention is that you understand how eBay works, but you also understand what brands want. Because when you look at the items from brands sold on eBay through you, it becomes clear that you put a lot, a lot of work into them. How do you get all the data from the brands?
Andreas : Well, creativity is often required too. So you have... what we like to do, for example on eBay, is create exclusive bundles. In other words, you get a fully automatic coffee machine, the matching cups and maybe even a packet of coffee, and bring together three brands at that point. Or you have a product that maybe needs some explanation in itself. We had a good example a few years ago: a large porcelain manufacturer came to us and had a soup plate. However, this soup plate no longer had any matching tableware to go with it; it was basically a solo item. And then a large quantity of these soup plates was to be sold. And we declared it as a gourmet plate... a gourmet plate looks exactly like a soup plate, and presented it accordingly. And that was a successful story, where you just have to say, okay, you may need to change the context of the product a little for the eBay customer, and then you can be very successful there.
Lisa : So you could say you're also a bit of a problem solver for brands.
Andreas : We are a very good problem solver for brands, yes.
Isabell : Before we continue talking to Andreas about brands on eBay, we want to know from you: have you already been authorized by your brand? And if so, what was your strategy behind the authorization? Tell us! If you're listening via the Spotify app right now, you can reply directly using the function.
Isabell : Andreas, if someone is listening right now and thinking: well, I actually sell a lot of branded products too, and I'm already in touch with brands. What would you advise for structuring the conversation in order to get authorization on eBay, so to speak?
Andreas : Well, first of all I naturally have to check whether this brand already exists in the authorized seller program on eBay. If that's the case, I have to approach the brand and then ask whether I can be included in this authorization. If the brand doesn't exist, then of course the way is to bring the brand to eBay, talk to the brand about it, but also talk to eBay about whether this brand can be included in an authorized seller program.
Lisa : Here, perhaps also an important note for listeners who have a contact person at eBay: you can also simply ask again what the status of the authorized seller program is. And then of course we're happy to help too.
Isabell : Exactly, and a very simple way to check whether the brand is already part of it or not is to do a quick search in eBay search. If the logo is displayed, then the brand is definitely already part of the program.
Lisa : Andreas, if we look into the future a bit, play fortune teller a little. What's your forecast for brands on marketplaces in the future?
Andreas : For brands, marketplaces are becoming more and more important. So if I, as a brand, am not present on the marketplaces and don't have an appropriate presence there, the brand loses its shine. And it is incredibly important for a brand to present itself well there so that the brand itself can also grow.
Lisa : Andreas, after this went so smoothly with the questions and answers, we now have a small recurring element that brings our listeners a little closer to our guests: the game is called "This or That" and I'm counting on your spontaneous instinct here. We always give you two alternatives and you then choose A) or B).
Andreas : Very good.
Lisa : Are you ready?
Andreas : Exactly, yes.
Andreas : Isabell, do you want to start?
Isabell : I'd love to start. Andreas: Saarland or Berlin? Which is better for e-commerce?
Andreas : Saarland.
Lisa : For my question, I already know the answer: after work, is your phone on or off?
Andreas : On.
Isabell : Established brands or startups? Which do you prefer to cooperate with?
Andreas : Established brands.
Lisa : Regional products or international brands? What appeals more to buyers?
Andreas : Usually international brands, because they are better known.
Isabell : Trend products or timeless items: what's the better strategy?
Andreas : Both!
Isabell : Yes, and with that we've already reached the end of our episode. Thank you so, so much, Andreas, for taking the time today to talk to us about the authorized seller program. We were able to take away so much, especially from your work and your role as a problem solver for brands. Thank you for that!
Andreas : Thank you very much for the invitation.
Lisa : Great to have you here!
Andreas : Thanks.
Isabell : So for the brand, if it wants to go to marketplaces like eBay in the D2C area, you have to be aware that you need a lot of infrastructure. And this whole package, from IT to customer service to logistics and returns, can be relatively expensive for one brand or another to set up. And in that case, it can be more interesting to go through an authorized seller or a service provider like us.
Lisa : Welcome to "Alles top. Gerne wieder!", the eBay podcast all about retail and e-commerce. I'm Lisa Haak and together with my host Isabell Butterwegge, I'm excited to talk about an exciting topic: authorized sellers on eBay.
Isabell : Lisa and I are responsible for this topic at eBay. So we know quite a lot about it. But because we always like to share real-life experiences with you, we invited Andreas Müller to the studio. Andreas is CEO and co-founder of deltatecc.
Lisa : If you don't know deltatecc yet: they work with major brands such as Nespresso and Bosch, for example, and are therefore a perfect example of how sellers can build long-term partnerships with brands through authorization.
Isabell : Since 2018, he has also been on the board of the Bundesverband Onlinehandel e.V., or BVOH for short. As president of the BVOH, he is particularly committed to the rights of sellers on online marketplaces. But first of all: welcome, Andreas!
Andreas : Thank you very much for the invitation. Nice to be here.
Lisa : But before we dive into the topic: what's a fun fact about you, Andreas? And I know you love this question.
Andreas : Exactly, back in the early days of eBay there was a request from the Catholic Church that came to us via eBay and wanted a whole lot of prepaid phones at the time, and we were a specialist on eBay for that back then as well. Today, prepaid phones aren't quite such a big topic anymore. And in that context, the church also asked us whether we could deliver a white phone. And back then there were no white phones on the market yet. And we knew that Sagem in Paris had such a phone, and we flew this white phone in for a very special guest at World Youth Day 2005. And he probably had a lovely phone from us for quite a while, which we also sell on eBay.
Isabell : And who was the guest?
Andreas : The guest was probably His Holiness, Pope Benedict.
Isabell : Funny!
Lisa : Suddenly we can say the Pope bought his phone on eBay?
Andreas : N...
Lisa : Okay... Then maybe at the beginning let's move on to another unusual question: deltatecc is based in Saarland. That's not unusual yet. But what's going on in Saarland that so many major e-commerce sellers are based there? You're not the only ones there.
Andreas : Exactly, in Saarland you have the effect that you have a very compact or very small regional market where you can grow very little. And for sellers, eBay or e-commerce as a whole offers a huge opportunity to become active nationwide or across Europe. Then we have a very favorable location towards France, Luxembourg, Benelux. And yes, I think that's one of the reasons why people from Saarland are quite successful in e-commerce.
Lisa : I've known you for a couple of days now, I would have expected something like: "Because we're just good at it." But that was an answer I'll take.
Andreas : Good!
Isabell : Yes, you also founded deltatecc in Saarland. Can you briefly summarize what services you offer exactly?
Andreas : We started deltatecc back then as a mobile phone retailer and have now developed into a full-service provider or service provider for brands. We don't just offer the classic buying and selling of goods, but support brands in the marketplace environment in positioning brands successfully on marketplaces and, among other things, on eBay.
Lisa : And that's exactly why we invited you here today. Isabell and I are a bit afraid that you actually know more than the two of us, even though we deal with the topic. We want to talk about authorized sellers on eBay. And Isabell, maybe let's start with some context: what are authorized sellers, or what do we understand by that on eBay?
Isabell : Yes, authorization of sellers is part of our brand program. That means brands can tell us which sellers they want to authorize with us. And then these sellers get the brand logo displayed on their listings on eBay, both on the search results page and on the item page. And by now a few other services have been added, such as Brand Funded Advertising, where brands can also finance advertising for sellers. In a way, sellers enjoy a slight preference, I would say, and because they get this badge from the brand, the listings also seem more trustworthy to buyers.
Lisa : And Andreas, you're authorized for many brands. What's the biggest advantage of the authorized seller program for you?
Andreas : Yes, you can really stand out from other sellers. The customer sees right away that I'm buying from an authorized seller, and maybe has more trust as a result. We sell a lot of much more expensive products, technical products, where the customer wants the assurance that they're buying from a seller authorized by the brand and that the corresponding warranty and service benefits are also behind it.
Isabell : But surely it's not enough just to offer great service. How did you manage to get so many brands to authorize you?
Andreas : Exactly, over the years we've managed to convince brands to sell on eBay. We approached brands, convinced them to become active on eBay with us, to use the authorized seller program and to present an appropriate presence there. So it's always very important to us that the item descriptions are very informative, very extensive, that customers are well informed. So, what a good salesperson in traditional retail represents, we, for example, represent on eBay with the item descriptions and therefore also with the brand presentation.
Lisa : You just said something really important: you approached the brands and asked to be authorized. And I think that's something we need to clarify again: for us, the authorized seller program is something that comes from the brand. That means we at eBay are in the partnership, in the relationship with the brand, and the brand can determine the sellers it wants to authorize on eBay according to criteria it chooses itself, over which we have no influence. And of course that works really well with the brands we already have a good connection with. But I know that you, Andreas, have also done a great job for us at eBay in making brands aware of it in the first place and then asking for this authorization.
Andreas : Yes, it actually happened today: I was at a trade fair, we convinced a brand to use the authorized seller program on eBay in order to present the brand better as well. That's currently in the scooter sector, but there are many brands that we convince to take the path to eBay with us. And with the brand, it's also the case that they have refurbished goods that are ideal for eBay. And yes, together with eBay we help onboard the brands there.
Lisa : And if a brand comes to us now and wants to authorize Andreas and deltatecc, for example, how exactly does the whole thing work?
Isabell : Exactly, the process is actually pretty straightforward. So in this case, the brand basically just tells us that they want to authorize Andreas, and then this is usually implemented within two days. The only prerequisite for the brand is to sign a so-called logo usage agreement with us, because of course we then display the logos accordingly on the site. So that's the requirement. But once that's done, the activation for additional sellers always works super quickly.
Lisa : And which brands are allowed to take part in the program and then also authorize sellers?
Isabell : As a rule, they are not own brands that take part in the program. And they are brands that have relevant search volume, both on eBay and on external search engines, and thus generate relevant sales in the market. And of course the criteria look a little different in each category.
Lisa : Andreas, when many brands, as they deal with their D2C, i.e. Direct-to-Consumer strategy, get to the point of deciding whether I want to sell on the marketplace myself or go through my authorized sellers or intermediaries? What do you see as the approximate advantages or disadvantages?
Andreas : So for the brand, if it wants to go to marketplaces like eBay in the D2C area, you have to be aware that you need a lot of infrastructure. I need the IT processes, which I can buy externally. But I also need customer support, which on eBay is a bit more specific than it might usually be, tailored to the marketplace. You need logistics services, especially logistics services tailored to end customers, including the returns process. And this whole package, from IT to customer service to logistics and returns, can be relatively expensive for one brand or another to set up. And in that case, it can be more interesting to go through an authorized seller or a service provider like us.
Isabell : And what exactly do you offer brands there?
Andreas : We always offer our brands the full-service package, which means we offer the brand everything, they only need to provide us with the product and the briefing about what they want. And then we implement that for the brand on eBay accordingly.
Isabell : Lisa, brands can now not only benefit from the authorization of sellers with us, but also have access to the brand program. Can you put that in context for us again, what exactly they can do there?
Lisa : Exactly, the brand program is much more extensive than our authorized seller program. Internally, we like to describe it very much like a buffet, where brands have the opportunity to help themselves to whatever at the buffet fits their strategy or whatever they feel like. And our brand program is especially focused on authorizing sellers, presenting the brand in a special brand context, which we call the showroom. Of course, they can also use our verified rights owner program on eBay to ensure that the brand is properly represented. But we also offer marketing options and advertising solutions directly for brands. And this is independent of whether they sell directly as a seller or indirectly. For example, with our brand funding options in the advertising area, brands now have the new opportunity to run advertising campaigns tailored to their brand via authorized sellers. And what has recently become part of the brand program is our brand cockpit. In our brand cockpit, we give brands the opportunity to log in themselves and gain a little more control over their business on eBay. Because as a brand itself, especially if you don't sell yourself, you don't even know what is actually being sold on eBay under my brand? So how much revenue am I making with which product? At what prices is it being sold? Which countries am I selling to? What are the different item conditions? But all of that is important insight for brands, especially if you also want to set up an advertising strategy on top of that. And with our brand cockpit, we give brands exactly this access.
Isabell : So brands have quite a lot of options with us on the marketplace. And with you, Andreas, selling on marketplaces is actually also very easy and accessible for brands. What are the main arguments you discuss with brands to go to marketplaces in the first place?
Andreas : Yes, marketplaces offer huge reach. If you look at e-commerce today, estimates say that over 70% of revenue is sometimes on marketplaces, depending on the product category. And marketplaces naturally have the advantage of already having the customers. And then it is simply a matter of presenting these products to the customer accordingly and thus generating huge reach and also generating sales. That's always the important thing. I may book a lot of advertising in many search engines, but of course I want sales, and marketplaces guarantee sales.
Lisa : And when you talk to a new brand, at what point does eBay and the authorized seller program come into play?
Andreas : Actually relatively early on. We talk to brands through the marketplaces: what options are available? Some marketplaces are better or less suitable for the brand. And when we notice that a brand wants to get more deeply involved with eBay, we also present the authorized seller program there and tell the brand what options it has there.
Isabell : So you also define the marketplace strategies together with the brands. What's your view on multichannel there?
Andreas : We have a lot of experience in the marketplace business. We've been doing marketplaces for almost 25 years and have the experience of which products work quite well on which marketplace, and we then give the brand a better sense of where they could be successful.
Lisa : And you're also super well connected in e-commerce and talk a lot with other sellers who are also part of our brand program or our authorized seller program. How do you split up the brands there? So do the brands then work with all of you sellers, or do the brands usually pick a preferred partner?
Andreas : It depends on the brand. Very large brands have several sellers, maybe also with several special focuses, where one seller handles one type of product, another seller handles another type of product. And yes, it's a normal competition. The sellers make sure that each one gets the best out for themselves.
Isabell : But that is actually another point that we should highlight. So authorization of a seller is not exclusive. So a brand can certainly authorize as many sellers as it wants.
Andreas : Exactly, so it may be that a brand authorizes only one or two sellers. But it may also be that a brand authorizes 10 or 20 sellers. That is up to the brand's strategy, how it handles this topic. And it always depends on how big a brand is, how widely distributed a brand is. These are all aspects that play a role.
Lisa : You talked about the challenge for brands in selling directly at all. We can all imagine it: probably easier to ship a pallet than to think about how my own product gets to the end consumer. But if we look at eBay again, what problems are you solving directly on eBay for brands when you act as authorized sellers for them?
Andreas : It starts with the eBay listing, which is not entirely trivial. On eBay, every product is an eBay listing, which must have an item description attached. That's the first point where many people first have to get used to it. It starts with the item text, i.e. the item title, which has to be described correctly. Maintaining all the attributes requires IT support. Many brands cannot provide this data from their structured systems such as SAP or similar. And that's where we come in and shorten the process. Often it is also the case that a brand may want to go on eBay quickly and not first go through an onboarding process lasting half a year or three quarters of a year. With us, it takes just a few weeks to implement this onboarding on eBay.
Lisa : And I think what's also important to mention is that you understand how eBay works, but you also understand what brands want. Because when you look at the items from brands sold on eBay through you, it becomes clear that you put a lot, a lot of work into them. How do you get all the data from the brands?
Andreas : Well, creativity is often required too. So you have... what we like to do, for example on eBay, is create exclusive bundles. In other words, you get a fully automatic coffee machine, the matching cups and maybe even a packet of coffee, and bring together three brands at that point. Or you have a product that maybe needs some explanation in itself. We had a good example a few years ago: a large porcelain manufacturer came to us and had a soup plate. However, this soup plate no longer had any matching tableware to go with it; it was basically a solo item. And then a large quantity of these soup plates was to be sold. And we declared it as a gourmet plate... a gourmet plate looks exactly like a soup plate, and presented it accordingly. And that was a successful story, where you just have to say, okay, you may need to change the context of the product a little for the eBay customer, and then you can be very successful there.
Lisa : So you could say you're also a bit of a problem solver for brands.
Andreas : We are a very good problem solver for brands, yes.
Isabell : Before we continue talking to Andreas about brands on eBay, we want to know from you: have you already been authorized by your brand? And if so, what was your strategy behind the authorization? Tell us! If you're listening via the Spotify app right now, you can reply directly using the function.
Isabell : Andreas, if someone is listening right now and thinking: well, I actually sell a lot of branded products too, and I'm already in touch with brands. What would you advise for structuring the conversation in order to get authorization on eBay, so to speak?
Andreas : Well, first of all I naturally have to check whether this brand already exists in the authorized seller program on eBay. If that's the case, I have to approach the brand and then ask whether I can be included in this authorization. If the brand doesn't exist, then of course the way is to bring the brand to eBay, talk to the brand about it, but also talk to eBay about whether this brand can be included in an authorized seller program.
Lisa : Here, perhaps also an important note for listeners who have a contact person at eBay: you can also simply ask again what the status of the authorized seller program is. And then of course we're happy to help too.
Isabell : Exactly, and a very simple way to check whether the brand is already part of it or not is to do a quick search in eBay search. If the logo is displayed, then the brand is definitely already part of the program.
Lisa : Andreas, if we look into the future a bit, play fortune teller a little. What's your forecast for brands on marketplaces in the future?
Andreas : For brands, marketplaces are becoming more and more important. So if I, as a brand, am not present on the marketplaces and don't have an appropriate presence there, the brand loses its shine. And it is incredibly important for a brand to present itself well there so that the brand itself can also grow.
Lisa : Andreas, after this went so smoothly with the questions and answers, we now have a small recurring element that brings our listeners a little closer to our guests: the game is called "This or That" and I'm counting on your spontaneous instinct here. We always give you two alternatives and you then choose A) or B).
Andreas : Very good.
Lisa : Are you ready?
Andreas : Exactly, yes.
Andreas : Isabell, do you want to start?
Isabell : I'd love to start. Andreas: Saarland or Berlin? Which is better for e-commerce?
Andreas : Saarland.
Lisa : For my question, I already know the answer: after work, is your phone on or off?
Andreas : On.
Isabell : Established brands or startups? Which do you prefer to cooperate with?
Andreas : Established brands.
Lisa : Regional products or international brands? What appeals more to buyers?
Andreas : Usually international brands, because they are better known.
Isabell : Trend products or timeless items: what's the better strategy?
Andreas : Both!
Isabell : Yes, and with that we've already reached the end of our episode. Thank you so, so much, Andreas, for taking the time today to talk to us about the authorized seller program. We were able to take away so much, especially from your work and your role as a problem solver for brands. Thank you for that!
Andreas : Thank you very much for the invitation.
Lisa : Great to have you here!
Andreas : Thanks.
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