Why eBay’s Pay As You Grow Scheme is great for independent retailers
eBay have launched a new scheme to give a helping hand to first-time business sellers on the platform, at little or no cost.
Inspired by the new UK Government policy of “Pay As You Grow” loan repayments for small businesses, eBay has launched the campaign to give entrepreneurs including independent retailers a helping hand to get selling on the platform.
This means you can expand your business online and sell your products on eBay whilst retaining margin due to the scheme’s generous reduction in listing and selling fees.
The offer will include:
- No fees for any first-time business seller registering on eBay.co.uk, in response to challenges of COVID-19
- New sellers on eBay would pay no fees at all to eBay until they have made over 100 sales in a single month – and significantly reduced fees until they have made up to 300 sales each month
- Fees only start to increase as sales increase – with 50% fees for second 100 sales and 25% fees for third 100 sales each month
- 90-day window for new sellers to benefit from scheme after joining eBay – starts 9 October 2020 and runs until 31st December 2020
While the scheme may be designed to encourage would-be entrepreneurs amongst growing legion of UK unemployed, it will also benefit retailers that have not yet made the move to selling online, or simply those that have not previously sold on eBay.
More about the scheme
Listing fees, or “Insertion Fees” as they are known as on eBay, are some of the biggest fees businesses have to pay and can sometimes be a barrier to getting started selling online. Currently, these fees are non-refundable, even if an item doesn’t sell. eBay also normally applies a “Final Value Fee”, which is a proportion of the final sale.
Under the 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. You’ll 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.
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