Private eBay sellers will no longer pay final value fees or regulatory operating fees when they sell on eBay.
In a bold move to stay competitive in the online marketplace, on October 1st, 2024, eBay UK eliminated eBay fees for private sellers across nearly all categories, with the exception of vehicles.
This significant change allows sellers to keep more of their earnings, making eBay an increasingly attractive platform for those looking to declutter and make some extra cash. eBay's decision to scrap fees will almost certainly be a response to the growing popularity of platforms like Vinted and Depop, which have gained traction with their no-fee selling models.
Earlier this year, eBay removed the insertion fee on clothing items, resulting in a substantial increase in fashion listings, much to the annoyance of business sellers whose fees weren't scrapped and were suddenly finding the eBay clothing market is saturated with huge amounts of clothing, as private sellers took advantage of a zero fee way to earn some extra cash by selling off their old clothes, with a double-digit increase in listings for popular items such as jeans, shirts, and dresses, but it brought more buyers to the site by giving buyers access to far more listings, resulting in a greater depth of inventory and bargains!
eBay has stated that it will support its community of hundreds of thousands of business sellers with new exclusive features. These include enhanced seller protections and free 1:1 support with seller clinics to give sellers easy access to growth support. Alongside pre-existing programmes such as Pro-Trader and Start-up Scale-up, business sellers can access a suite of bespoke tools to help scale up their businesses.
The listing fee removal has been extended to almost all categories, creating a level playing field with competitors. This means that you won't have to worry about final value fees eating into your profits when you sell an item on eBay! Fees are still payable on optional listing upgrades to boost listings' visibility, making them more likely to sell, and fees on motors (Cars, Motorcycles, and vehicles listings) have been kept.
Private sellers have capped the number of listings that can be made for free to 300 items per month. If you list more than 300 items per month, you’ll then have to pay 35p in additional fees per item. If you sell something to a buyer outside the UK, you’ll still pay the international fee of 3%, so those international fees can add up, but you can, of course, refrain from offering your items to buyers outside of the UK, but it's a big world and offering your listing to overseas eBay users gives you a greater breadth of potential customers!
Potential Savings for Sellers
Sellers can save significantly with these new free listings and removed selling fees. For example, selling something for £80 with £10 postage would save you £11.90 in fees over what you would have paid before the fee removal, which is a significant saving. If you're selling lots of items, then the savings on those selling fees will really add up.
What does eBays competition charge in fees?
Vinted operates on a fee-free model for sellers, instead implementing a 'protection fee' for buyers that varies based on the item's price. For purchases under £500, this fee ranges from 3% to 8% of the item's cost, excluding shipping. Orders exceeding £500 incur a flat 3% fee. This fee structure makes Vinted particularly attractive for high-volume sellers, as it remains more cost-effective than eBay once the latter's free listing allocation of 300 items per month is exhausted.
Depop has also revised its fee structure, eliminating seller fees. Sellers now only face a 2.9% payment processing fee plus 30p per transaction. Buyers on Depop are now charged up to 5% of the item's price plus a fixed amount of £1, not including taxes or shipping costs.
Facebook Marketplace continues to be a free service, with no listing or selling fees, but offers none of the seller, or buyer support of its rivals, such as payment disputes, seller performance policies, best practices requirements and the higher level of good marketplace experience you would expect from eBay and its rivals, as many of us have experienced, selling on Facebook Marketplace can be either a really good experience or an absolute nightmare, but if you're not paying any basic fees, listing fees, seller fees or transaction fees, you simply can't expect Facebook to get involved in any disputes, or for sellers to adhere to any kind of business policies, (unless they are a registered business and then you can get Trading Standards involved!)
These changes in fee structures across platforms highlight the evolving landscape of online marketplaces. There is a trend towards reducing or eliminating seller fees to attract more listings and increase competitiveness.
Unlocking the Value of your Unused Items
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%) value their unused items between £50 and £300. Nearly a quarter (24%) of UK households are sitting on items worth over £500. The most commonly unused items in UK homes include adult clothing (44%), DVDs and/or CDs (33%) and technology items (27%).
The majority (56%) of people sell items they no longer use to make money, with almost half (47%) finding it more sustainable than throwing them away. Many want to increase the amount of space they have in their homes (55%), whilst nearly a quarter (23%) of households sell items to fund buying new items3. Alongside free selling, eBay’s new features will make it easier than ever to sell unwanted items.
New Tools for Easy Selling
To make the selling process even smoother, eBay has introduced new features:
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 in 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 funds to their bank account.
Selling unused items isn't just good for your wallet; it's also beneficial for the environment. By giving items a second life, you're helping to reduce waste. In fact, nearly half of sellers report feeling better about selling their items than sending them to a landfill, and with eBay's new fee-free model and improved selling tools, there's never been a better time to turn your clutter into cash!
Remember that eBay do now report your income to the Inland Revenue, which for most people will be far from an issue, but if you do sell over £1,000 of items, then your sales may potentially be looked at to see if you should be paying tax on your income, but as long as you are just selling your property then you have nothing to worry about, HMRC is looking for private sellers who are actively selling/reselling for profit, and if they see these sellers selling far more than would likely be personal goods, then they'll be getting in touch for further information, but for most people, the HMRC is nothing to worry about, so sell your clutter with confidence!
Five best practice tips for selling on eBay
1. Optimise Your Listings
To attract potential buyers, ensure your listings are well-optimised. Use high-quality images that showcase your items from multiple angles. Aim for at least three clear pictures highlighting unique features or flaws. Additionally, write detailed descriptions that include relevant keywords to improve search visibility. This not only helps buyers understand what they’re purchasing but also boosts your listing's ranking in search results.
2. Price Competitively
Research similar items to gauge appropriate pricing. Review completed listings to see what similar products have sold for and adjust your prices accordingly. If you’re selling unique or rare items, consider starting with a low opening bid to encourage bidding activity. For more common products, a fixed price may be more effective; you can always set a reserve price to ensure you don't sell something too cheaply!
3. Offer Free Shipping
Free shipping can significantly enhance your listing's appeal. eBay tends to favour listings that include free shipping in terms of search rankings. To accommodate this, you can either incorporate the shipping cost into the item price or ensure that your shipping charges cover all associated costs without deterring buyers. Offer overseas postage to maximise your potential buyers and get your listing in front of more of your target audience.
4. Maintain Excellent Customer Service
Building trust with buyers is crucial for repeat sales and positive feedback. Be transparent about your return policy and respond promptly to inquiries. Ship items quickly and communicate tracking information to buyers. High levels of customer service can lead to better ratings, which in turn increases your visibility on the platform.
5. List Regularly and Strategically
Instead of listing all your items at once, space out your listings over several days. This strategy keeps your products appearing in the "new listings" section multiple times and helps establish you as a consistent seller on eBay. Consider creating a posting schedule based on when you believe your items will attract the most interest.By implementing these strategies, you can enhance your selling experience on eBay and maximise your profits while building a solid reputation among buyers.
*Research commissioned by eBay. Opinium consumer research, 2,000 Nat Rep UK adults, carried out August 2024
Comments