eBay to Authenticate Trading Cards Over $750 - New Policy

eBay Expands Authentication to Include Trading Cards

The online marketplace, eBay, is extending its authentication services to encompass valuable trading cards. This new service will initially focus on authenticating cards with a value of $750 or more, covering collectible card games, sports cards, and non-sports cards.

Service Expansion Timeline

Further expansion is planned for the mid-point of the current year. The authentication service will then include graded cards, as well as those featuring autographs and patches, when sold for $250 or higher. These additions aim to bolster customer confidence in the authenticity of high-value items sold on the platform.

Growth in the Trading Card Market

The decision to incorporate trading card authentication stems from the significant activity within this category on eBay. The company reports that the trading card segment is experiencing growth at a rate exceeding that of the overall marketplace.

In the first half of 2021 alone, $2 billion in transactions occurred within the trading card category. This figure represents a complete match to the total trading card transactions recorded throughout the entirety of 2020.

Collector Tools and Engagement

Currently, nearly 4 million cards, both purchased on and off eBay, have been added to customer Collections. This tool, introduced last year, allows collectors to track their portfolios and monitor real-time market valuations.

Furthermore, approximately a quarter of a million eBay buyers have utilized the Price Guide tool to analyze trends for their preferred trading cards.

Trending Card Categories

During the first six months of the previous year, certain card categories demonstrated particularly strong growth. These included:

• Tennis (1,797% growth)
• Soccer (852% growth)
• Pokémon (536% growth)
• Marvel (437% growth)
• Golf (436% growth)

eBay's Strategy and Authentication Partners

Dawn Block, VP Collectibles, Electronics and Home at eBay, emphasized the growing cultural importance of the trading card business. She stated that authentication services are becoming increasingly crucial for collectors as hobbies evolve into investments.

The authentications are being conducted by experts affiliated with the Certified Collectibles Group (CCG), specifically CGC Trading Cards and Certified Sports Guaranty (CSG).

Positioning Against Competitors

eBay is actively working to differentiate itself from competitors like Facebook Marketplace by establishing itself as a premier destination for rare collectibles and luxury secondhand goods.

Expansion of the Authenticity Guarantee Program

eBay initially launched its authentication program in 2017, focusing on handbags. It subsequently expanded to include luxury jewelry and watches. The acquisition of a sneaker authentication business from Sneaker Con Digital in November further solidified this strategy.

The introduction of the Authenticity Guarantee for sneakers led to significant quarter-over-quarter category growth, resulting in over 1.55 million sneaker authentications before the service was brought in-house.

Positive Financial Results

By the third quarter of 2021, eBay’s U.S. sneaker business was experiencing double-digit growth, and luxury handbag sales were also outpacing the overall U.S. site at a double-digit rate.

How the Authentication Process Works

Participation in the eBay Authenticity Guarantee is automatic for eligible items; there is no option to opt-in or out. Sellers ship items to an address provided by eBay for authentication.

Authenticators have two days to verify watches or trading cards, and three business days for sneakers or handbags. Approved items are shipped to the buyer with two-day secure delivery. Items failing authentication are returned to the seller, and the buyer receives a full refund.

Currently, eBay is covering all authentication costs, though this policy may be subject to change.

Driving Cross-Category Purchases

eBay believes that attracting enthusiast consumers will encourage purchases across multiple categories and of higher value. CEO Jamie Iannone explained that buyers of sneakers and luxury watches spend approximately $2,000 and $8,000, respectively, on other items.

He also noted that improvements in buyer and seller trust have contributed to growth in luxury categories.

Competition in the Trading Card Space

However, eBay faces increased competition in the trading card market from specialized apps and services such as Alt, Whatnot, Loupe, Topps, WorthPoint, and CollX.

Program Success and Customer Satisfaction

To date, eBay has authenticated over 1.4 million items across various categories since relaunching its authentication program as the “authenticity guarantee.” Customer satisfaction with the program exceeds 90%.