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E - commerce giant eBay , facing stiff contention from newer competitor , has removed final - value sale fees for all items debar gondola sell domestically in the U.K.
This mirror a standardized move the company madein Germany last yearand notably set eBay in line with the the likes of of Vinted and Depop , two newer arrival bring home the bacon business from consumer looking to betray used vesture and similar goods online . Currently , neither Vinted nor Depop charge marketer fees , monetizing through other means .
EBay’sannouncementcomes against a background of move up costsacross a wide range of mountains of consumer goodsin the U.K. , which in act has beendriving demandfor cheaper “ pre - loved ” alternatives . This has been particularly apt in the fashion sphere , with second - hired man clothing gross sales growing 18 % last year to $ 197 billion globally , approach 10 % of the overall mode grocery .
Vinted , a second - paw clothes marketplacelast valued at $ 4.5 billion , lately hitprofitability for the first timewith its sales event growing 61 % to nearly € 600 million in 2023 . Other players such asEtsy - ownedDepophave also reported sales growth . This prompt eBay to hit vender fees for manner particular in the U.K.back in April .
Now , eBay is execute the whole nine grounds and removing seller fees for the majority of trade good , with the one elision being automotive products such as car . This means that there will be no final - value fee taken from trafficker on any sold goods , while there will also be no insertion fees for up tothe first 300 itemslisted , after which eBay will charge £ 0.35 per item .
Final value , as eBaydefinesit , relate to fees taken based on the full time value of a sales event , which includes the sale of the item , transportation and handling charges , taxes and other direction .
Competition
It ’s clear that eBay ’s actions have been influence by the contention , with Depop ditching seller fee in market such asthe U.K.andU.S. sooner this year , relying instead on payment processing fees . Vinted also does n’t charge a final - economic value fee , instead monetize through avenues such as “ buyer protection ” and sellers paying to “ boost ” the visibility of their listings .
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By removing the final - economic value fee , eBay hopes that it can tempt marketer with the promise that they ’ll keep more of their net , which should — in theory — meliorate choice for buyers too . And that is what the company said it find when it removed fee in Germany .
“ Our initiative in Germany last year has shown us that eliminating sell fees can beef up our market place by lowering the barrier to C2C [ client to client ] selling , which improves the breadth and deepness of armory on eBay , ” eBay president and CEO Jamie Iannone say in aninternal emailit also published online .
And with more buyers and trafficker , this potentially opens the gates for eBay to monetize through other new and existing channels , admit advertising , financial servicing , and shipping . Moreover , Iannone allude to a Modern “ buyer - face ” fee coming next twelvemonth , which sound similar to what Vinted presently offers .
There is no word on whether eBay signify to stretch this young approach shot other country , but the company ’s top three markets are the U.S. , U.K. , and Germany , so it wo n’t be all that surprising if it were to remove trafficker fee in its own domesticated securities industry in the future .
