Business Services Industry

eBay and ReturnBuy Team Up to Increase Quantity of Merchandise Available to Consumers; ReturnBuy Integrates eBay's Application Program Interface API to Streamline Listings

Business Wire, May 24, 2001

Business Editors/Hi-Tech Writers

ASHBURN, Va.--(BUSINESS WIRE)--May 24, 2001

ReturnBuy, Inc., the innovation leader in returns services, announced today a strategic alliance with eBay to expand the quantity of merchandise available through the online trading community.

ReturnBuy also completed the integration with eBay's Application Program Interface (API) that allows the two companies to instantly exchange data through a fully secure and private communication hotline. eBay participated in ReturnBuy's $15 million second-round funding that was completed mid-March.

ReturnBuy benefits retailers, distributors and manufacturers by reducing processing costs and significantly increasing resale revenue on the growing volume of returned and overstock products. The company uses channels such as eBay to sell goods to consumers. Historically, retailers have only recovered a small portion of the retail price on returned and overstock merchandise, but resale of products through online channels enables ReturnBuy to recoup three to five times more value for its clients than through traditional liquidation.

"Innovation and sound fundamentals are the qualities that will continue to make companies like eBay and ReturnBuy a success," said Walt Shill, president and CEO of ReturnBuy. "ReturnBuy will provide eBay members returned and overstock merchandise from retailers, distributors and manufacturers. We are thrilled to be involved in this strategic expansion that provides valuable products to the world's online trading community."

The agreement between eBay and ReturnBuy reflects the ongoing effort to expand the range of quality merchandise available through the global trading platform. eBay selected ReturnBuy as one of its select purveyors of consumer electronics, computers, toys and sporting goods.

ReturnBuy also completed the integration with eBay's Application Program Interface that allows the two companies to instantly exchange data through a fully secure and private communication hotline. The technology enables eBay to update sections of the listings including callout, galleries and minimum reserve prices; and allows ReturnBuy to post new products, merchandise closings and feedback for improved customer service as well as offer their clients a highly scaleable and manageable solution.

"We are pleased to expand our relationship with ReturnBuy to increase the quality merchandise in the eBay marketplace," said Jeff Jordan, senior vice president and general manager of eBay U.S. "ReturnBuy's innovative approach makes it possible for value-conscious eBay members to purchase virtually-new, name brand merchandise at bargain prices."

ReturnBuy is the first company to use technology to create new dynamics for the returns and overstock markets. ReturnBuy's solution is simple - merchandise is sent directly to a ReturnBuy processing facility, where it is evaluated, merchandised and sold through a variety of online and offline resale channels. This spares merchants from costly storage rooms and dismal liquidation proceeds and turns what was formerly a cost center into an efficient, profit center.

About ReturnBuy

ReturnBuy, Inc. combines leading technology and high-velocity logistics to physically process and individually resell like-new products through online and offline resale channels. ReturnBuy's solution eliminates the traditional supply chain of returned products by reducing the number of intermediaries. In its previous investment round, the company received financing from Draper Atlantic and a team of leading technology investors that also funded Intel, Apple and Hotmail.

Currently, ReturnBuy serves over 15 clients, including Egghead.com, a leading Internet direct marketer of technology and related products. In addition to several top Internet retailers, ReturnBuy serves leaders in traditional retail, as well as distributors and manufacturers. ReturnBuy is headquartered in Ashburn, Virginia, and operates nationally through its facilities in Virginia and South Carolina. For more information visit www.ReturnBuy.com/business.>