E-commerce giant eBay has announced the removal of final-value sales fees for nearly all items sold domestically in the U.K., a strategic move aimed at countering fierce competition from newer platforms. This initiative, which excludes automotive sales, aligns eBay with emerging rivals like Vinted and Depop, both of which have successfully attracted consumers looking to sell second-hand clothing without incurring seller fees.
This decision mirrors a similar fee elimination eBay implemented in Germany last year and comes at a time when U.K. consumers are increasingly seeking more affordable “pre-loved” alternatives amid rising costs of consumer goods. The growing demand for second-hand items is particularly pronounced in the fashion sector, where sales of used clothing surged by 18% last year, reaching a global total of $197 billion and accounting for nearly 10% of the overall fashion market.
Vinted, a popular second-hand clothing marketplace, has recently achieved profitability, reporting a remarkable 61% sales increase, which brought its revenue to nearly €600 million in 2023. Other competitors, such as Depop—now under the ownership of Etsy—are also experiencing robust growth. These developments prompted eBay to remove seller fees specifically for fashion items in the U.K. back in April.
Now, eBay has expanded this policy, eliminating seller fees for the vast majority of products listed on its platform. The only exception to this new rule remains automotive products, including cars. Sellers will no longer face final-value fees on sold goods, and the platform will waive insertion fees for the first 300 items listed. After reaching that limit, a charge of £0.35 per item will apply.
Final-value fees are calculated based on the total sale value, which encompasses the item price, shipping costs, taxes, and any other applicable charges. By eliminating these fees, eBay aims to enhance its appeal to both casual sellers and small businesses looking to thrive in a competitive e-commerce landscape.
As consumers increasingly turn to online platforms for second-hand shopping, eBay’s move could significantly impact its market share. The removal of these fees is not just a tactical response but a potential game-changer in how online selling operates, offering a more favorable environment for sellers and helping eBay retain its relevance in an evolving marketplace.
