eBay Pay As You Grow scheme for start-ups and small businesses

By Chris Dawson October 7, 2020 - 9:00 am

A new eBay Pay As You Grow scheme promises no fees for any first-time seller registering on eBay UK in response to challenges of COVID-19. The marketplace are removing all fees for first time sellers for their first 100 sales each month.

With the very real expectation that thousands will be made redundant in the coming weeks, eBay Pay As You Grow has been designed as a life line to those who want to build an online enterprise by lowering the barrier to entry by enabling growth before costs come in. It builds on eBay’s continued efforts to create new economic opportunities right across Britain, following a wide range of seller support policies brought in since the start of the pandemic, and alongside their ongoing investment in eBay for Charity.

Starting this coming Friday (the 9th of October) and running until the end of the year, the offer – which has been inspired by the new UK Government policy of Pay As You Grow loan repayments for small businesses – is specifically designed to give an entrepreneurial helping hand to the growing army of unemployed across Britain, by encouraging them to set up their own online businesses at little to no cost.

First up will be no listing fees, often a barrier as you have to pay regardless of whether you have a successful sale. They are relatively small on eBay nowadays, but it will still be a welcome cost saving for new businesses. Final Value Fess as a percentage of the sale price are more significant and these too will be waived.

Under eBay’s new Pay As You Grow scheme, no listing fees or final value fees will be charged for any first-time seller on the site for their first 100 sales each month, followed by discounted fees thereafter. Businesses will only have to pay as their sales start to grow. Fees will be reduced by 50% for the next 100 sales for first-time sellers and reduced by 25% for the 100 sales following that each month.

“Britain is teeming with would-be entrepreneurs and businesspeople. We just need to give them a helping hand and the encouragement they need to get their business up and running. With all the economic challenges we’re seeing across the country, getting rid of the barriers to trading online will really help. We’ve specifically designed this offer for first-time sellers and start-ups – partly to help the growing numbers of unemployed to set up their own businesses and start making money.”
– Murray Lambell, UK General Manager, eBay

“We have been saying for months that more support is needed to help independent retailers survive this crisis. We welcome eBay’s efforts to help small businesses and high street retailers to expand their business online at little cost, and we hope this will go some way in sustaining independent retailers and keeping people employed as the end of furlough approaches.”
– Andrew Goodacre, CEO, British Independent Retailers Association

“I set up my business selling 3D printer parts on eBay earlier this year after my university degree was put on hold due to the pandemic. Since then, sales have been increasing month-on-month and show no signs of slowing. I’m now back at university and continuing to grow my business alongside my studies from my bedroom, which means I’ve even been able to give up my part-time job at a local supermarket. I can’t stress enough how easy it was to get started – particularly for young entrepreneurs like me, it means you can develop your business idea without needing to invest in a website or store.”
– Henry Cawley, owner of UK Components and one of the new sellers on eBay

  • victor
    8 months ago

    we wonder how many email addresses and bank accounts
    our Chinese friends actually have

    • Toby
      8 months ago

      The first thing that came to my mind too! This is just making it easier for these chinese multi account sellers to make even more money.
      Why ebay doesn’t act on this and the ‘business but selling as private sellers’ i have no idea? They are loosing loads of money. No point reporting them because nothing happens. Gave up that ages ago…. maybe we should all take a look at the buisness model they use and join them? After all if ebay won’t act on it… then they must endorse it?!

  • Diane Hunter
    8 months ago

    While I understand their reasoning I believe this will have an impact on small businesses in the low sale price market where price is so competitive. Ebay should be looking at all small business as many of them are struggling to survive in these times.

  • SAM
    8 months ago

    Will be abused of course. What is to stop myself from using a buying account turning it to business and saving myself some fees????

    Anyway nevermind that. Typical hook and line Bank tactics seen it all before. If it helps some people keep the wolf from the door (it did me in 2008) this is great.

    We are constantly seeing a 20% and 15% sale for the fabled few on eBay. This is unfair competition for the rest of us as there is a constant disadvantage for the rest of us.

    All I ever get is CUT your prices give more and more away. Murray and his bank of laptop corporates will cover the costs with more stealth FEES passed on to established eBay business. We have had a couple of fee deals but these are few and far between.
    As they say themselves high unemployment means less spending power and less customers…

  • ifellow
    8 months ago

    A load more listings incoming, making life even harder for older sellers.

    We we seem to get is Urine.

  • ifellow
    8 months ago

    Great for the people that sign up and enjoy the promotion.

    But in the real world, every listing that ends and an item goes out of stock feels like a real VICTORY at the moment, as I can get my stock cleared, my warehouse fees reduced, and keep the money in the BANK.

    For me personally, there is nothing to be made in this current marketplace, and everything to lose.

    I am not the worlds biggest online retailer but regularly stock 500 to 1500 units of each SKU.

    Buying to sell into the market as it is today, is quite insane unless your lucky enough to have little or no competition from China.

    • ifellow
      8 months ago

      Forgot to mention, over the last 2 years, I have offset this weakness in domestic demand by exporting to the EU which accounts for around 50% of sales but more importantly, id say 65% of profits.

      About to lose that soon as well, so the quicker my stocks gone before Christmas, the happier ill be.

      Id rather keep the shirt on my back, than leave naked.

  • victor
    8 months ago

    not to mention the logistics effect
    if this is as successful as ebay would hope

  • NorthCrystal
    8 months ago

    Another slap in the face for well established sellers – cheers eBay management.

  • BabyDog
    8 months ago

    Just like banks, eBay offers no reward for loyalty.

    • ifellow
      8 months ago

      If you Chinese there’s a ton of help and rewards check out, you can even do eBay modules which give you some kind of degree and go on local courses.

      These marketplaces are actively and aggressively recruiting Chinese sellers and rewarding them. UK, EU, and USA sellers they don’t really care about.

      Maybe they think the Chinese government will be impressed and allow them to exist, as both eBay and Amazon failed in China, or maybe they just want the shop fees and damn the domestic sellers. Won’t be good forever, as all the accounts being closed down probably default of fees as well.

    • Rob Oakley
      8 months ago

      What rewards would you like to see or expect?

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