New OnBuy marketplace launches for seller sign up
OnBuy was first announced over three years ago but delayed their original launch and it’s taken longer than expected to prepare to open the doors. Now after three years of development, considerable investment and testing, they are ready to launch OnBuy to sellers today, the 7th November 2016.
Sellers are now invited to go to OnBuy.com/sell to register with OnBuy. Those who sign up first will benefit from early bird perks which will help support their sales by highlighting their products to visitors to the site.
Cas Paton, managing director of OnBuy laid out the case for sellers to sign up for OnBuy saying “For too long sellers have had a raw deal, with their profit margins squeezed by having to pay commission on every product they sell. OnBuy is different – there are no selling fees. We want to work with sellers, not against them or in competition with them. We are here to help them grow their business and customer base.”
OnBuy have no sales fees, no hidden fees and a simple subscription model of £49/month (Exc VAT). OnBuy explain that their aim is for the vast majority of sellers the cost-per-sale under a subscription model will be lower than fees charged by Amazon and eBay, allowing vendors to sell at lower prices and pass savings on to customers.
OnBuy planned marketing
OnBuy are planning a big promotion campaign to consumers starting in January. This will be followed by a planned high-profile marketing campaign across online, print, TV, radio, and social media. One of the key benefits to signing up now and not waiting, includes getting early exposure and gaining market share. Sellers will be building a relationship with OnBuy and will be directly involved in their marketing push.
Sellers who sign up now will be also eligible for free product boosting, which works in a similar way to Facebook boosted posting and helps bring products to the attention of shoppers.
OnBuy is a trading platform and not a retailer – it does not hold any inventory so unlike other major online retailers, it will never offer products in competition with its own sellers. Payments are securely handled by Stripe. As a British company, OnBuy pays its taxes in the UK.
Is there space for a new marketplace?
UK merchants have wanted an alternative to eBay and Amazon for many years. Most of the alternatives which have been available haven’t gained traction to attract professional sellers but some do succeed.
Play.com/Rakuten failed miserably and whilst we’ve seen potential for eBid we still only know of one seller who has built a viable (albeit small scale) income there. However successful new UK Marketplaces that we love include NotOnTheHighStreet who specialise in gifts and more recently Yumbles have carved out a niche as a food marketplace. The guys at Flubit set themselves up to compete directly with eBay and Amazon and like OnBuy their proposition was that consumers could save against Amazon’s prices. Flubit have been massively successful leading to their launch of SKU Cloud last week.
OnBuy’s Price Proposition
OnBuy aim to attract consumers based on lower prices. They say “OnBuy helps to keep prices low by not charging sellers commission, allowing sellers to keep their prices as low as possible and offer OnBuy customers better prices than can be found elsewhere“.
Consumers love a deal so lower prices will be attractive, but in today’s maturing market we’re seeing other factors such as the speed of delivery (same day, next day) and convenience (Click & Collect, timed delivery) also determine where buyers purchase. Amazon are the monster driving the choice and convenience of delivery which is why so many consumers sign up to Amazon Prime but Flubit built their business by refusing to compete on service with Amazon and the simple proposition that if you shop with Flubit they’ll find a lower offer for consumers than Amazon’s price. Flubit have shown that price can trump service if the proposition is right.
OnBuy will have to quickly build a mass of consumers buying on the site in order to keep retailers engaged with the site. Online sellers are very prosaic and if a marketplace is successful they’ll embrace it. All OnBuy have to do is get buyers buying and seller recruitment will take care of itself.