eBay Acquires Certilogo to Boost Brand Authentication

eBay is ramping up its luxury efforts with the purchase of authentication firm Certilogo.

The deal gives eBay access to the Certilogo technology platform, which lets brands and designers manage the lifecycle of clothing and lets consumers verify the authenticity of their garments, according to a Wednesday (May 17) press release.

“This acquisition further solidifies eBay as a trusted destination to shop for pre-loved apparel and fashion and marks a key investment in the growing pre-loved fashion category,” the company said in the release. “It also provides customers with more confidence as they increasingly make more sustainably conscious purchase choices.”

eBay said the acquisition is expected to close in the third quarter without disclosing details such as pricing. The deal came weeks after the company said it was committed to doubling down on the luxury sector, even after Cudoni, the resale platform it had backed, shut its doors.

Soon after, eBay debuted the Certified by Brand program, designed to provide consumers with a broader range of sought-after and collectible luxury items while also ensuring authenticity through eBay’s Authenticity Guarantee.

eBay will offer newly released, certified pre-owned, limited-edition, or exclusive “only on eBay” stock from high-end brands like Konstantin Chaykin, Zodiac Watches and Le Vian.

“Certified inventory in the resale market presents an undeniable chance for brands and authorized retailers, and eBay is the perfect collaborator for those seeking expansion,” said Tirath Kamdar, global general manager of luxury at eBay, in April.

In 2021, eBay debuted an authentication service for luxury handbags in an expansion of its authentication guarantee program, letting customers get professional authentication for new and pre-owned handbags from luxury brands such as Saint Laurent, Gucci and Balenciaga.

The company’s earnings report last month showed increased traction in the luxury sector with double-digit yearly growth since the fourth quarter of 2019 in focus categories including watches, handbags, jewelry and sneakers.

“However, despite this growth, a significant percentage of these items listed are noted to be pre-owned,” PYMNTS wrote. “In 2022, over 60% of watches, over 50% of handbags, and over 30% of jewelry listings were categorized as pre-owned.”

Nevertheless, eBay said it still had more than 170,000 watches, over 100,000 handbags, and more than 1 million jewelry listings on average each day in 2022, demonstrating the popularity of the luxury category for the platform.

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