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The Guardian - UK
The Guardian - UK
Technology
Rupert Jones

Online retailer eBay scraps fees for private sellers in UK

eBay on a screen
In April, eBay UK removed sellers’ fees for fashion and had double-digit increases in the most popular listings. Photograph: Ian Dagnall/Alamy

Online retailer eBay has scrapped fees for private sellers across almost all of its categories as it attempts to keep fast-growing rivals such as Depop and Vinted at arm’s length.

The move means eBay’s UK sellers no longer have to pay transaction fees, except for cars, motorcycles and other vehicles.

In April this year, eBay removed fees for private sellers of pre-owned clothes, and the company said it was “now evolving the experience even further”.

The site said ditching seller fees for fashion had already led to a double-digit increase in listings for popular items such as jeans, shirts and dresses, while at the same time keeping items out of landfill.

The move comes amid increasing competition from rival platforms such as Depop and Vinted.

Many platforms charge buyers rather than sellers. For example, there are no fees for uploading items or selling them on Vinted, but buyers pay a “buyer protection fee” of between 3% and 8% of the pre-postage price on each item, plus between 30p and 80p.

In March this year, Depop removed its selling fee – which was 10% of the total sale price – for all newly listed items, and introduced a “marketplace fee” for UK buyers of up to 5% of the purchase price, plus a fixed amount of up to £1. However, Depop sellers still have to pay a payment processing charge.

On Tuesday, eBay said its move, which has taken effect immediately, meant private sellers would no longer pay so-called final value fees or regulatory operating fees when they sold on the site.

A survey for the website suggested that an estimated 294m unused items across the UK could generate more than £9bn in resale income, with half of households (50%) valuing their unused items at between £50 and £300.

Nearly a quarter of households (24%) were sitting on items worth more than £500, the most common categories including adult clothing, DVDs, CDs and gadgets, the poll found.

When eBay’s German site dropped selling fees last year, it reportedly gave a boost to the business. The company claimed that not only did more people there start selling on the site as a result, but more than 250,000 German sellers started buying, and they ended up buying twice as much as buyers who do not sell.

The consumer research, carried out in August, also found that the majority of people (56%) sold items they no longer used in order to make money, with almost half (47%) finding it more sustainable than throwing them away, 55% wanting to clear space in their home, and 23% selling things to fund new purchases.

Kirsty Keoghan, the eBay UK general manager, said: “Removing selling fees across categories is designed to give buyers access to greater breadth and depth of inventory, while creating a simplified and streamlined experience for sellers.”

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