eBay becomes an online pro-shop for Callaway golf clubs
Although it typically steers clear of channeling sales of new, first-line products for brand-name manufacturers, eBay.com’s Sports store is working on ways of selling brand-name used merchandise on behalf of manufacturers.
Its latest deal is an arrangement with FrogTrader Inc. to sell pre-owned Callaway golfing equipment that golfers trade into Callaway retail stores when they purchase new equipment. Other online shopping areas within eBay are likely to use the Callaway example to develop similar arrangements with manufacturers and retailers, eBay tells InternetRetailer.com. "That’s what we’re looking to do with more manufacturers," says Greg Fant, director of eBay Sports.
FrogTrader, in an exclusive arrangement with Callaway Golf Co., buys returned equipment from Callaway, refurbishes it and re-sells it on eBay and on CallawayGolfPreowned.com, which is a wholly owned subsidiary of FrogTrader.
FrogTrader has worked out an arrangement with Callaway under which Callaway stores will accept products returned by customers for a value that is fixed for each type of equipment, such as a putter or a 9-iron, as long as the returned item is in good condition. Customers are given a certificate that can be used toward an in-store purchase of a new Callaway item. FrogTrader then reimburses the Callaway stores and takes control of the returned merchandise.
David Schofman, CEO of FrogTrader, says Callaway customers buy new golfing equipment, on average, every 3 to 5 years. But by providing a new way for Callaway customers to get credit for returned equipment, he figures he can help Callaway cut that average interval by more than a year. "Our goal is to cut that purchase interval in half," he says.
Schofman says he’s talking with eBay about setting up similar arrangements in categories such as skiing equipment and tools, areas where manufacturers are constantly upgrading technology to introduce more sophisticated products.
Back...
