New eBay fees policy introduces free selling for ‘private sellers’

Ebay has made a big move recently (September 30th 2024) by allowing ‘private sellers’ in the UK to list items without attracting any eBay fees. 

But what does this move mean for businesses that use eBay to sell their products? Well, the new eBay policy has created a clear distinction between ‘private’ and ‘business sellers. 

What does eBay classify as a ‘private seller’?

The eBay business seller policy states that an eBay seller must register as a business if they have bought items to resell, make items to sell, or if they buy items for their business. These eBay business sellers must follow both HMRC and eBay regulations. 

Additionally, they’ve also stated that a ‘private seller’ will be limited to 300 listings a month. Any more than that and they won’t be able to benefit from zero eBay fees for sales and will need to register as a business seller. 

Where did the decision to remove eBay fees for private sellers come from?

Many private sellers were eagerly anticipating this change to eBay fees after a recent glitch on the platform hinted at their removal. But you may be asking yourself what prompted this decision on eBay’s behalf? Well, largely the decision aligns with many other ecommerce platforms where they’ve cut selling fees and shifted costs to the buyers. 

It also follows trials that eBay took to remove fees in Germany where it led to a big spike in sales. Since launching zero eBay fees for fashion items in April, eBay UK has seen increased activity in popular categories such as jeans and shirts. 

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But what about ‘business sellers’?

While private sellers stand to gain from the new zero eBay fees, many business sellers are expressing concerns about their ability to compete. The introduction of free selling for private sellers raises questions about how business sellers will maintain their edge. 

To address their worries, eBay has outlined plans to enhance protections and provide personal support for business accounts. As eBay embraces the shift towards ‘free’ selling, the impact on business sellers will remain a pressing issue. Striking a balance between the needs of individual sellers and established businesses will be crucial to a fair marketplace for everyone. 

If you're navigating these changes and need expert guidance, our team of online accountants are here to help you make sense of your finances and optimise your eBay selling strategy.

Interested? Book a free call with our advisors to see how we can help you!

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