EBay’s newly branded “eBay Classifieds” — formerly known as Kijiji — is being repositioned to better leverage eBay’s capabilities, according to U.S. GM Martin Herbst, who spoke to us for a new report that we’ve just issued in BIA/Kelsey’s Marketplaces program.

EBay potentially brings its vaunted user feedback system to the table, as well as its expertise in buyer protection and shipping advice. Integration with eBay is also expected to provide a major promotional boost. EBay is one of the most search optimized sites on the Internet. The SEO will be paired with high-level promotion of the site on eBay’s heavily trafficked home page. The promotion appears just underneath the search bar.

The site will also work directly with eBay Motors, a separate organization, to “cross-pollinate traffic and listings,” says Herbst. “A post on eBay Classifieds will provide exposure on either platform. They are very similar classifieds products.”

For the first time, eBay is also seeking to directly complement its core auctions with classifieds. Auctions that don’t sell can be shifted into classified listings — an effort that was just introduced via e-mail and online promotions to eBay members.

“Some items just work better on classifieds than on eBay,” notes Herbst. These include furniture, sporting goods and equipment. Other items that work better in classifieds include those that have slight defects or are secondhand.

“Users don’t want to hurt their eBay ratings” with imperfect items, says Herbst. “With classifieds, they can check it out in person.”

One thing that won’t change, is the ability to use eBay Classifieds without registering as an eBay user. Many people will want to shop classifieds, or post comments about listings, without signing on, Herbst says.

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