Digital Wine Ventures (ASX: DW8) will boost its reach even further after its online platform WineDepot collared an agreement with eBay.
The duo inked a memorandum of understanding which opens the door for the parties to negotiate a partnership that will allow Australian wineries to list their products on eBay without having to set up an account.
It is expected products will be automatically uploaded to eBay via a new part of WineDepot’s platform called Direct.
Direct was established to enable suppliers to sell their products through a broad range of direct-to-consumer channels.
Under the agreement, WineDepot will picked, pack and deliver any orders generated on eBay.
Meanwhile, eBay’s 12 million unique monthly visitors will be able to purchase from multiple suppliers at the same time, while also taking advantage of same and next day delivery where those services are available.
Greater sales potential for Australian wineries
Commenting on the proposed partnership, Digital Wine chief executive officer Dean Taylor said it would help local producers generate incremental sales to consumers.
eBay Australia managing director Tim MacKinnon pointed out that bushfires, and tough borders due to COVID, along with venue number restrictions had led to Australian businesses “doing it tough”.
“eBay exists to create economic opportunity, which is why we’re excited to partner with WineDepot, enabling local wine producers – many of which are located in regional areas – to scale their online offering and giving their local regions a much-need economic boost,” Mr MacKinnon added.
The MoU terms provide for WineDepot to pay eBay a fixed percentage marketing fee, which is applied to each sale a WineDepot supplier makes through the eBay platform.
However, there are no minimum fees or expected volumes specified in the agreement.
As a result, Digital Wine noted it was “not possible to forecast potential revenue” from the proposed partnership.
If the partnership is successful, Mr Taylor said it would help WineDepot to expand into other global markets once it establishes that capability.