BRIEF

In October 2022, Zip announced a strategic partnership with eBay. The go-to-market objective was to drive conversion of existing and new Zip customers to check out at eBay with Zip, whilst simultaneously attracting eBay acquisition and growing loyalty with eBay Plus customers. But why Zip?

STRATEGY

Recognising the vast volumes of data shared between eBay and Zip, the launch strategy was to overlay eBay’s backend website statistics with Zip’s proprietary COTS (Customers Of Tomorrow Segments) metrics.

As Australia’s go-to online shopping marketplace, eBay promises customers exactly what they want while Zip lets them pay it off on their terms. Leveraging COTS research across App, Web, CRM, and Social allowed Zip customers to enjoy more of what they want from the brands they know and love.

SOLUTION

To kick off the launch, a Singles Day (November 11) teaser campaign invited customers to nominate their eBae to redeem the 11% offer before anyone else.

A week later, an exclusive discount of 11% for non-eBay Plus members and 15% for eBay Plus members ran for two-days under the eBay now pay later banner.

COTS data was used to segment customers by their preferred categories – Seize The Dayers (luxury), Cruising Considerers (home), Smart Investors (tech) – resulting in a hyper-targeted CRM strategy.

EFFECTIVENESS

The two-day exclusive offer represented that first ever partnership activity with e-commerce giant eBay and accounted for 50% of Australian traffic on the site during that week.

On Thursday 17 November, total transaction volume (TTV) totalled $1,426,970 while the average order value (AOV) was $218 for the 5027 customers who transacted.

The next day, 487 transacting customers pushed their AOV to $183 with TTV hitting $113,130.

On a daily breakdown, TTV soared to $260K ($130M per year) as acquisitions spiked at 25 (for top 5 merchants). Highly engaged customers (22%) purchased twice or more, while a $90 AOV reflected a 38% jump for eBay alone.

With marketing efforts from eBay at 83M reach and 17M reach from Zip, the launch campaign totalled 2,242 new customer acquisitions and $3,004,930 in (TTV).

Post-launch, data revealed that 1 in 25 customers were completely new to eBay, having never shopped on the marketplace site before.

This cohort was attracted through word of mouth, Facebook ads and exposure to the launch campaign on either the Zip or eBay website/app – testament to the power of eBay now paying off later.