PetSmart acquired Pet360 for $130 million in cash and up to $30 million more in future performance-based payments.
A/B tests of 188 online merchants showed that displaying the buySAFE seal increased the rate of purchase where it was displayed. In over 1.6 million transactions studied, the seal also brought in prices an average 4.7% higher.
Displaying the buySAFE seal boosted conversion by 2.1% over items that didn`t show the seal across 1.6 million listings on eBay that were studied by the seal’s sponsor, buySAFE Inc., the company reported.
The findings, released as part of the company’s Impact Study, an ongoing testing process that quantifies how the seal affects the busyness of buySAFE’s customers, also determined that the bonded items from the 188 retailers studied sold for prices 4.7% higher than the prices received by non-bonded items. Overall, the company reported in the study, using buySAFE increased revenues by 6.8%.
The seal indicates to online shoppers that the seller is reliable and that their purchases are guaranteed with a surety bond from Liberty Mutual at no cost to the buyer. Study results were based on A/B testing in which the sale was randomly placed on about half of a merchant’s eBay listings, while the other half of the merchant’s listing went unchanged.
The presence of the seal affected both high- and lower-ticket items, the study determined. In the higher-priced category of jewelry, for example, bonded items saw an average sales price increase of 40% over non-bonded items. In lower-ticker camera and photography accessories, bonded items saw a 9% increase in the average sales price versus non-bonded items.
“BuySAFE increased my sell-through rate and the overall price of items sold during a 30-day period, which had a major impact on my monthly sales revenue,” says Michael Jansma, CEO of eBay seller Gemaffair. “The A/B testing demonstrated that consumers trust the seal and feel more confident buying from a bonded seller.”