The company is also redesigning its website to include Facebook features
E-Commerce company eBay is testing a service called Lifestyle Deals to offer Groupon-style daily deals in some select US cities.
The company is also redesigning its website to include Facebook features and expects to increase its sales.
Currently, the new site’s offers are being provided in a limited number of US cities that include San Francisco and Washington.
eBay Marketplaces president Devin Wenig was quoted by Reuters saying that the company has a big marketplace and a lot of people who come to it will stay and buy across categories.
"It makes perfect sense to experiment with new categories, and services is one of these things," Wenig said.
"We’re seeing whether deals and services are attractive to our customers."
According to Reuters, the move is significant for eBay, which has traditionally focused on products rather than services.
In a separate development, eBay has partnered with Signpost, a site which arranges deals with local merchants to go on eBay’s online marketplace.
Backed by Google Ventures, Signpost already offers deals to Google Offers, a rival to Groupon.
Founded in 1995, eBay was originally known as AuctionWeb until September 1997.
In September this year, eBay had rolled out its new logo similar to the old one launched 17 years ago, as the company tries to shift its focus from auction to merchandise.