OnBuy working to offer 2.4m products to shoppers
Not much more than a month ago, OnBuy announced it was ready to help sellers upload their inventory to the site and available to buyers.
OnBuy is a new marketplace that doesn’t charge selling fees but rather is funded by subscription model: £49 or £89 (ex VAT) a month. We wrote about the launch here. OnBuy operates in the UK, the European Union, the USA and Canada.
And they’re on track to have 2.4 million product lines available to shoppers, despite their relative youth. And their sights are firmly set on taking on Amazon and eBay.
OnBuy MD Cas Paton says: “We are off to a flying start and delighted with the response from sellers in the first two weeks. The feedback has been very, very good – sellers are telling us that they are fed up with paying the high seller fees on Amazon and eBay and welcome a British alternative that puts sellers first.
“We are giving them a credible alternative, working with our sellers and not against them or in competition with them, and helping them to grow.
“Our research tells us that customers and sellers don’t like some aspects of Amazon but so far they feel there has not been a credible alternative. Now there is one. “The question for sellers shouldn’t be ‘why would I sell through OnBuy?’ It’s ‘Why wouldn’t I?’
“There are key benefits to signing up now and not waiting, including getting early exposure and gaining market share. Sellers will be building a relationship with OnBuy and will be directly involved in the huge marketing push.
“The benefits are not just for sellers and customers, but for the economy as a whole. As a British company, OnBuy pays its taxes in the UK and is passionate about supporting the British economy.
“We’re very excited to be at this crucial stage in the development of a marketplace which we believe will shake up online shopping and offer both sellers and shoppers the deals they deserve.”
Is anyone actually selling anything on Onbuy?
Giving them £49 a month is a nice earner for them, but what about sellers?
Are they delivering buyers?
Yikes! Now there’s an optional account management fee, taking the monthly total to £89 per month and the £49 fee now apparently only covers 1,000 items. Contact their team for a quote for more !!!!
Still nobody has registered to sell in our categories on Onbuy, so, as they say on Dragons Den, I won’t be investing, I’m out.
Very much reminiscent of Ebid – at least they only wanted £49 as a one-off fee, not monthly !!!
Account managed is optional for those sellers that want a direct account manager.
However, we don’t charge any more for unlimited products, we just want to get a feel for what the products are to protect our systems from mass upload of low quality items.
Rakuten, eBid, CQout, blah blah.
Don’t think so!
Last week OnBuy accidentally sent an email to all there sellers by cc this meant that every sellers email address was exposed and caused an outrage between the sellers of OnBuy’s professionalism.
The sellers have now created a forum as from OnBuys last accounts in 2015, a company who had circa 5k in the bank could hardly complete with marketing of Amazon and eBay.
The other worry of all sellers is nobody has made a sale and the majority of categories remain with no products within them.
From the poor website design to the ill thought emails sent by OnBuy they seem to have a long way to go before attracting sellers.
I will be sticking with OnBuy, but just hope they are a legitimate company and we start seeing some signs of marketing soon.
Last week a small group of sellers were emailed by an overzealous (new, but we all are) seller team member, all CC’d so the sellers in the group that he was targeting were all visible to each other. We have apologised for this and have taken steps to ensure that this doesn’t happen again.
Our TV marketing is still set to start in individual regions and on-demand services, in February and increasing month on month through 2017.
a British alternative that puts sellers first.
is the strap line that worries us
its buyers we need not sellers
It’s extremely difficult to start a business like this and simply changing the method of income for the marketplace owner and the cost dynamics for a seller doesn’t do anything to get buyers on the site.
Sure it is chicken and egg – need sellers before you get buyers, but these days you need a big marketing budget with some cool ideas.
Rakuten failed and they had a much daisies start migrating customers from play – all done very poorly and no need – play.com is the best name outthere.
I know how I would do it – but I will keep that to myself for now 🙂
I agree, the demise of Rakuten was entirely their own fault due to the way they discarded the play.com sellers and dropped a memorable short url for Rakuten without sufficient marketing
So basically the answer is no, then. Nobody can say they’re selling anything on this site.
Perhaps Tamebay should do some checks to make sure they are pukka
If you search the business forums via google you will find references to Onbuy back in 2013.
At that time, the fee was £22 per month with a small % commission.
I think that Onbuy should be prepared to refund any subscribers if this fails to take off.
It’s one thing to be optimistic and intending to change the online market. However, it’s clear that they’ve tried before and, presumably, failed.
We have already replied to one of your posts above.
We have mentioned our 2013 soft launch, but the project was sold to one of our investors after a disagreement about how charges should be levied to sellers.
Our group has invested in OnBuy and has delivered the marketplace to market. The site is selling, and although we are not pushing to TV marketing until February, the site is already seeing traffic.
By all means please do reach out to our seller team:
When I first spotted the pre-launch on Tamebay I did take a look and I went through the sign up procedure, but left before creating the account.
There was very little information about when I would be expected to pay, which I assumed meant I was to start paying immediately.
I was also concerned about how long I would have to “bank roll” Onbuy, along with other sellers, before customers came calling.
I do not agree that it is a chicken & egg situation, you cannot have buyer until you have items for sale, in this situation you need to offer sellers a free 3-6 month trial incentive or 3 months free & 3 months 50% or sliding scale combination. Once a seller is taking sales, they are likely to stay on-board.
If they are serious about getting customers it is a waste of time without having sellers, customers will think it a joke or a scam site and possibly never come back.
Without sellers, you have nothing!
As a buyer I struggled to find any category with something in it (so I’m only likely to return to the site as a result of reading updates about it on Tamebay!)
I would therefore agree with the sellers who suggest that getting inventory on to the site should be the top priority.
this has a funny flavour to it,and we just dont see it working
We signed up with OnBuy from day one and have so far made four sales, which is four more than we ever did with eBid.
Seller support has been excellent, and they take on board suggestions that we have put forward, so we aim is to stick with OnBuy because our experience has been positive and has shown us that they actually respect us as sellers.
Remember that they have always made it very clear from the onset that they would not be pushing the site with on-line and TV advertising until February 2017.
4 sales since it launched (in 2013?) at £49 a month subscription? Why bother?
No, four sales since the recent relaunch last month. We are trying to tell you need to speculate to accumulate – Suck it and see.
I thought the idea of selling is that you are meant to make more than it costs you, which could be your case if you are making a vast profit on the 4 sales you have had.
What you fail to realise is that unless they get 1,000+ other mug sellers paying £49.00 per month there will be no money to pay for advertising / promotion.
Bottom line is if they can’t get you buyers at this time of year, they probably never will.
I would rather NOT “suck it & see”, but you enjoy sucking!
Thank you for your comments.
OnBuy is not relying on sellers subscriptions to start marketing the site, rather is using the subscriptions to slow uptake of the marketplace at this time.
We know that the sellers that do join OnBuy now will be willing to invest time and effort into making sure that their listings are right, pricing is keen, and will work closely with us. If OnBuy was free of subscription, our seller team would be inundated with requests – this would create a very dangerous situation and an inability to support sellers.
If OnBuy can support individual sellers and then use affiliate partners to “bulk” the site with additional products, we can market and then sellers will slowly join as a consequence, replacing the affiliates and bringing more choice to consumers.
OnBuy is launching our first TV campaign in Feb and plan to continue with TV marketing throughout 2017, region-by-region, including On-Demand services.
Please remember that OnBuy is a 3-5 year plan that does not rely on seller subscription uptake.
Thank you and we hope that you will consider OnBuy when the time is right for you.
That really does not make sense.
Lack of sellers means that buyers have a lack of choice
Sellers do not have competition so do not have to be “keen” with their pricing
So to get round the above you will be bulking out the site with affiliate partners, such as Ebay & Amazon, maybe? Great news, maybe I will see my products listed on your site in the near future.
We just got the email the other day too.
Sadly the only thing we stand to gain for our £49 per month is first mover advantage, but that only lasts so long.
I actually prefer a commission based model, as it incentivises both parties (seller and Marketplace) to ‘sing for their supper’. As it stands now, its a one-way gamble that OnBuy are going to invest that £49 in a way that I stand to benefit.
As it stands £49 in my category is what Amazon receive in commission on £326 of sales. I don’t see £326 of sales coming from a new marketplace in a rush so unless they are willing to put their money where their mouth is – and say “we’re confident enough that we will drive buyers to your products so let’s say that you won’t pay any subscription fees unless you sell £X amount in a month” – then I can’t see us investing the time integrating with them.
The £500 worth of boosted listing was the main incentive, last night we got an email saying they will promote them above the standard listing and charge 3% FVF, add in STRIPE fees and sub fees may as well stay on eBay least I get volume.
This was not clear at all when signing up and this has got me thinking I do not like hidden extras..
We only had limited units but not a sale, which sold in their hundreds on Amazon and eBay over the last 2 months. Now I have had to remove even them as we stop trading till Boxing day. (NO holiday closed shop mode)
However was aware nothing was going till Feb so was not that concerned. We wanted a head start which we now find is going to COST this is what has put me off.
I have been the only person in my Cat to actually list anything and have signed up to two other marketplaces that have been selling.
Am a bit 50/50 about this one now.
3% FVF? I thought the £49 was all you would ever pay? Anyone from onBuy care to comment?
£49 plus VAT. 3% is on the BOOSTED listings which are promoted ABOVE the standard. Exact same as eBay style. No fee on standard listing however , just Boosted, and there is only one winner when it comes to boosted listings, which I will not use now.
If I knew 3% was going to be charged on this £500 incentive early sign up it would not have been done.
See you want me to list at a better price, pay sub fees, 3% FFV on Boosted and STRIPE Fees. Where is the incentive. Certainly can not come near my web prices.
Don’t get me wrong I want to cut the Amazon and ebay fees right down eBay are taking £900 this month, god knows with Amazon’s structure.
Just wish could get everyone to come direct and get rid of all marketplaces. .