Why? 

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There are several reasons why eBay has removed the fees for private sellers, the main reasons being:

 

– As a response to growing competition. For example, eBay is reacting to increased competition from newer platforms like Depop and Vinted. These platforms have captured significant market share by allowing users to sell pre-owned goods, particularly fashion items, without charging seller fees. To remain competitive, eBay is adopting a similar approach to reduce seller costs. 

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– Expansion of its previous initiatives. Back in April this year, for example, eBay removed fees for private sellers of pre-owned fashion items, which led to a notable increase in listings. Seeing success in that category may have contributed to eBay expanding the fee removal across almost all categories to attract more sellers and increase listings on the platform. 

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– To encourage both second-hand sales and sustainability. A survey conducted for eBay showed that there are millions of unused items (an estimated 294 million) across UK households, representing as much as an estimated £9 billion in potential resale value. By removing fees, eBay aims to encourage people to sell unused items, thereby not only helping eBay boost and retain customer numbers but also contributing to sustainability by keeping items out of landfills. 

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– Increased inventory and user engagement. It appears that the move is also designed to boost the volume and variety of items listed on eBay, thereby enhancing the buying experience. For example, more sellers and more diverse inventory may lead to more buyers engaging with the platform, driving a broader customer-to-customer (C2C) marketplace. 

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– As part of eBay’s long-term monetisation strategy. Although eBay is waiving UK private seller fees, it could potentially monetise the transactions through other means, such as advertising, enhanced listing services, or buyer-facing fees (similar to Vinted’s model). This approach lowers barriers for sellers while opening up new revenue streams. 

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Exception 

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The removal of sellers’ fees will, however, not apply to motors: Cars, Motorcycles & Vehicles listings.

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Other Benefits 

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In the same announcement, alongside the removal of transaction fees for UK private sellers, eBay highlighted several other new benefits its introducing to improve the marketplace for both private and business sellers, while keeping the platform competitive. These are: 

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– Fraudulent returns protection for business sellers, i.e. enhanced support to handle fraudulent returns more effectively, including quicker resolutions and additional postage credits for false claims. 

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– Seller clinics. For example, business sellers can now access free one-on-one advice from a Marketplace Advisor for personalised business guidance. 

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– From October 16, eBay Balance for private sellers, whereby, private sellers’ earnings will go directly into an “eBay Balance” for easier management, with quarterly automatic transfers to bank accounts or manual withdrawals on request. 

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– A crackdown on false private sellers, i.e. eBay says it’s increasing efforts to ensure that business sellers using private accounts transition to business accounts, with tighter monitoring and reduced free listings for private accounts.

 

What Does This Mean For Your Business? 

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With these changes, eBay is positioning itself to stay competitive within what has become an increasingly crowded online marketplace, while also reinforcing its commitment to sustainability and user engagement. By eliminating transaction fees for private sellers in the UK, eBay is not only responding to rising competition from platforms like Depop and Vinted, but also actively encouraging the resale of unused items, a move that could significantly boost listings across various categories. This, in turn, could enhance the overall buying experience on eBay by offering greater inventory variety and more opportunities for buyer-seller interaction. 

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Also, it could be said that the fee removal aligns with eBay’s broader sustainability goals, encouraging the reuse of goods and helping reduce waste. The combination of free listings and new seller support initiatives (such as eBay Balance and enhanced protections for business sellers) appears to suggest that eBay is focusing on creating a more seller-friendly environment while exploring alternative revenue streams.  

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While the eBay platform still faces the challenge of differentiating itself from a growing number of increasingly powerful competitors, eBay will be hoping that these changes could provide the boost needed to attract new sellers, retain loyal users, and expand its role in the second-hand economy.