EBay Inc is launching virtual stores called "shoppable windows" this
month that the e-commerce company hopes will help retailers generate
more sales from their existing physical store networks.
The
first four of these screens will open from June 8 through July 7 in
busy parts of New York City, such as the lower east side and Soho. They
will sell 30 items from Kate Spade Saturday, a new fashion brand
launched this year by apparel retailer Fifth & Pacific Companies
Inc.
EBay set up a window display in New York
City in late 2011, but those storefronts did not let shoppers order
products on the screen.
The new screens
measure about 9 feet (2.7 meters) across and 2 feet (0.6 meter) high and
will appear on the front windows of closed stores. Shoppers will be
able to touch the screens to order and have products delivered to them
within an hour via courier. Payment will be accepted by the couriers
through PayPal Here, a mobile payment service developed by eBay.
This
is the latest effort by eBay to work more closely with large retailers
that are looking to reach more online and mobile shoppers. The company
has attracted some large retailers, such as Target Corp, to its online
marketplace, while developing mobile shopping technology for other
retailers such as Macy's Inc.
EBay's
"shoppable windows" are an extension of the shift to mobile shopping,
according to Steve Yankovich, head of the company's Innovation and New
Ventures group, which developed the technology.
"This
extends the boundary of the store. Suddenly the physical store, by
virtue of online technology, extends to any space that's interesting to
use," Yankovich said.
For Fifth & Pacific,
the windows will help launch its new Kate Spade Saturday brand without
opening new physical stores, at least initially, according to Chief
Executive William McComb.
However, the company
also plans to use the technology in existing stores of its other
brands, such as Juicy Couture and Kate Spade New York, he added.
"This gives us the ability to produce more from our retail space," McComb said. "My nickname for it is the Wall as a Mall."
McComb
said he is considering putting shoppable windows in small Juicy Couture
stores that will offer about 200 different shoes to buy.
The company may also use the windows in Kate Spade New York stores to sell home furnishings, bedding, linens and towels.
"We
would never be able to fit all those products in a store in the
traditional way," McComb said. "These things would typically require an
extra 10,000 square feet of store space. But through partnerships like
this eBay one we could do this through stores that are 2,000 square
feet."
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