eBay removes seller fees to counter new marketplace startups

E-commerce giant eBay has eliminated final-value sales fees for most items sold domestically in the UK, excluding cars. This move mirrors a similar strategy employed in Germany last year and aligns with newer competitors like Vinted and Depop, which also do not charge seller fees. The decision comes as demand for second-hand goods, particularly fashion items, rises amidst increasing consumer costs. Both Vinted and Depop have seen significant growth, with Vinted achieving profitability and Depop reporting sales growth.

By removing seller fees, eBay aims to attract more sellers and expand its inventory, offering greater choices for buyers. The move follows Depop's and Vinted's fee structures, which rely on alternative monetization methods like payment processing fees and visibility boosts.

Jamie Iannone, eBay's president and CEO, indicated that this initiative in Germany showed positive results, enhancing their marketplace. There is potential for eBay to monetize through new channels, including advertising and financial services, and possibly introduce a buyer-facing fee next year. It's unclear if this approach will extend to other markets, but eBay's top markets are the US, UK, and Germany.

Source: TechCrunch