The Digital Wine Venture Limited (ASX: DW8) share price is through the roof today, after news the company intends to partner with eBay.
The online beverage distributor has signed a memorandum of understanding (MOU) with online shopping giant eBay to partner with Digital Wine Venture's WINEDEPOT.
At the time of writing, the Digital Wine share price is up 50%, trading at 16.5 cents.
Let's look further into the potential eBay partnership.
Image source: Getty Images
WINEDEPOT and eBay
Under the MoU, eBay and WINEDEPOT will negotiate the terms of a partnership in which Australian wineries would be able to sell their products on eBay without an account of their own.
Instead, WINEDEPOT's trading platform, DIRECT, would enable wineries to list products on a range of channels, including eBay. WINEDEPOT would then pick, pack, and deliver wine orders made on eBay to customers.
Digital Wine Venture said this would allow eBay's 12 million monthly visitors to purchase from multiple wineries at the same time and take advantage of WINEDEPOT's same and next day deliveries in selected locations.
Commentary from management
Digital Wine CEO Dean Taylor says he was confident a partnership with eBay would help local producers generate more sales. He also mentioned that, in time, the partnership could benefit international wine lovers as WINEDEPOT looks to begin overseas delivery.
eBay Australia's managing director Tim MacKinnon also commented on the MoU:
We know bushfires and COVID border closures along with limited venue capacities have left countless Australian businesses doing it tough.
eBay exists to create economic opportunity, which is why we're excited to partner with WINEDEPOT, enabling local wine producers – many of which are located in regional areas – to scale their online offering and giving their local regions a much-needed economic boost.
Digital Wine share price snapshot
The online beverage distributer's share price opened at just 11.5 cents this morning; it is currently trading at 16.5 cents.
The Digital Wine share price has had a great year on the ASX, up 312% year to date and up 1,550% over the last 12 months.
The company has a market capitalisation of around $182 million, with approximately 1.6 billion shares outstanding.
