The decision follows a successful trial on the removal of fees for private sellers in Germany (Image: Getty)
Seller fees are being scrapped by eBay in a landmark move which could give a £9 billion boost to UK consumers through the sale of unwanted items.
The removal of the fees comes as eBay fights back against the rise of rival platforms such as Vinted and DePop.
The move by eBay is predicted to see a massive increase in both the number of private sellers and buyers using the online auction platform ahead of Christmas and beyond.
The decision follows a successful trial on the removal of fees for private sellers in Germany and a decision earlier this year to end fees to private buyers selling clothes in Britain.
It is part of a wider package to improve eBay, which includes simplified listings using AI, a simplification of deliveries and promotion of a scheme to help shoppers buy items from local sellers which can be picked up.
eBay has been squeezed in recent years with an increasing number of Britons shifting to rivals 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 percent and 8 percent 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 percent of the total sale price – for all newly listed items, and introduced a “marketplace fee” for UK buyers of up to 5 percent of the purchase price, plus a fixed amount of up to £1. However, Depop sellers still have to pay a payment processing charge.
Research by eBay suggests there are an estimated 294 million unused items which could be sold and generate £9 billion in resale income.
After eBay Germany removed selling fees last year, there was a massive increase in sales worth hundreds of millions of pounds. The greater volume of items and choice led to an increase of 250,000 in the number of buyers.
At the same time, active buyers typically bought twice as much as in the past. The removal of fees on sales of fashions in the UK led to a double-digit increase in listings for popular items such as jeans, shirts, and dresses.
A eBay spokesman said: “With an estimated 294 million unused items in homes across the nation, there is an estimated resale potential of over £9 billion to be unlocked.
“Half of households (50 percent) value their unused items between £50 and £300. Nearly a quarter (24 percent) of UK households are sitting on items worth over £500. The most commonly unused items in UK homes include adult clothing (44 percent), DVDs and/or CDs (33 percent) and technology items (27 percent).”
eBay research found the majority ( 55 percent) of people sell items they no longer use to make money, with almost half (47 percent) finding it more sustainable than throwing them away.
Many want to increase the amount of space they have in their homes (55 percent), whilst nearly a quarter (23 percent) sell items to fund buying new items. Alongside free selling, eBay’s new features will make it easier than ever to sell unwanted items.
The general manager of eBay UK, Kirsty Keoghan, said: ““eBay is constantly improving the marketplace experience in order to deliver on what our customers want.
“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.”
Seller fees are being scrapped by eBay (Image: Getty)
What the changes mean
Fees scrapped on all sales by private individuals, except for motors – including cars and motorcycles.
Simplified Selling: Sellers can list items across categories within minutes using guidance about the best pricing and shipping options, alongside AI-generated descriptions and photo-enhancing tools.
Simple Delivery: This service, currently being rolled out across categories, offers sellers a tracked and fully covered delivery at competitive rates, prepaid by the buyer, for a simple and secure shipping experience.
Local: eBay Local lets shoppers find nearby items available for in-person collection, all protected by eBay’s Money Back Guarantee. Sellers’ listings will have increased visibility with local buyers, along with an easy and secure payment process.
eBay Balance: Starting from mid-October, this new feature gives sellers the flexibility to use their earnings to shop on eBay, promote their listings, purchase delivery labels or withdraw available funds.