Ann: WINEDEPOT Signs MOU For Partnership With eBay, page-187

Looking through the announcement again the following comment is interesting.

"Digital Wine's CEO Dean Taylor is confident that a partnership with eBay would help local producers generate incremental sales to consumers, not just here in Australia but also over time in other global markets as WINEDEPOT develops capability to drop ship orders internationally."

It appears DW8 will develop capability to drop ship globally. They will require agreements with the likes of DHL, UPS, Fedex etc & they will also require software that will enable selection of the cheapest carrier to the various destinations around the globe.

Powerhouse drop ship markets include the US, UK & Canada therefore the US & Canada were mentioned this time as well. Ebay has 185M buyers globally across 190 countries. They have Ebay sites operating in numerous countries. Amazon would be similar & is actually a powerhouse in the US with a huge market share.

In 2021, over 2.14B people worldwide are expected to buy goods & services online, up from 1.66B global digital buyers in 2016. (Statista)

I have purchased products with ease from many places in the world using Ebay platforms. Liquor will be the same for global buyers wanting a taste of Australian/NZ products. The suppliers on the DW8 platform via Ebay, Amazon, Vivino etc will have a global buyer audience with international drop shipping. They could do same with international suppliers & put them on the global stage.

The announcement regarding the MOU is a bit strange as it appears to be a done deal with terms to be negotiated. They could have waited a week or so when they negotiated terms & announced the partnership. Paypal will also be involved in the negotiations as they are the payment processor skimming a fee. The comments by the Ebay MD make it sound like a done deal.

I was thinking maybe they are pumping SP for a CR but they have heaps of cash. Maybe they have an acquisition lined up & want to raise with minimal dilution. They mention they want to solidify their presence in Australasia prior to expanding so I doubt they will require funds to expand internationally now. I might be wrong with pumping thoughts & it is simply the market valuing DW8 according to big future potential.