Ebay goes social

Most consumers probably associate eBay Inc. more with vintage lunch boxes and low-priced electronics than with laptop bags made from recycled plastic by women in New Delhi.

Now, EBay developed the site with World of Good Inc., a start-up focused on “ethical supply chains” behind consumer products, and licensed the group’s name for the marketplace. The site will sell fixed-price goods that purportedly have some positive effect on people and the planet. As on eBay, sellers on WorldofGood.com will pay fees to list items and give eBay a commission on successful sales. All transactions will be made through eBay’s electronic payment system, PayPal

Independent third-party organizations like Rainforest Alliance and Co-op America will screen sellers and verify the items listed on the site. The goal is to help consumers align their social values with their shopping decisions, WorldofGood.com general manager Robert Chatwani said.

Shoppers will be able to search for products by certain social or environmental categories, revealing, for example, a photo of the man who produced the fair-trade coffee you’re interested in buying, details of its origins and whether some of the proceeds support a charitable cause.

This is an effective way for creating social and environmental awareness and doing business at the same time. The market for products that emphasize social and environmental awareness is growing. Chatwani cited the Natural Marketing Institute’s estimate that the U.S. market for such goods was $209 billion in 2005, and the group projects that will rise to $420 billion in 2010.