eBay will stop charging seller fees in the UK

As of today, eBay consumer-to-consumer (C2C) sellers in the UK will no longer have to pay for any domestic purchases. The company had first tested free selling for pre-owned clothes earlier this year. Using the data from this test, eBay decided to open the floodgates.

In addition to the initial test in the UK, eBay also in Germany for domestic sales. In today’s announcement from eBay, CEO and President Jamie Iannone said that doing so can “strengthen our marketplace by lowering the barriers to C2C selling, which improves the breadth and depth of inventory on eBay.” However, Iannone also mentioned that the company will begin implementing a “buyer-facing fee” early next year.

Among the reasons cited for the removal of seller fees was that the UK is home to hundreds of millions of unused items. Iannone believes that sellers would be more inclined to set up shop on eBay if they didn’t have to spend money just to list items and not worry about the company taking a percentage of the money received after a sale. The breadth of items coming from consumers rather than just professional sellers could make the marketplace “more vibrant.”

eBay also faces competition from Vinted and Depop, two newer ecommerce platforms that don’t charge seller fees. Vinted, in particular, is a second-hand marketplace primarily for clothes, and eBay removing seller fees for clothes is a direct answer to the rival company. Depop, owned by Etsy, has also been growing. Thus, it’s not a surprise that eBay is following its competitor’s footsteps.

The announcement also mentioned more changes and improvements, such as a “streamlined listing process,” an improved local pickup process and a better wallet experience through eBay Balance. eBay plans to share more details on its future plans at the next Global All Hands event.