eBay UK has today announced the launch of the “Pay As You Grow” offer for UK start-ups, removing all fees for first time sellers for their first 100 sales each month.
Starting on Friday 9 October and running until the end of the year, the offer – which has been inspired by the new UK Government policy of “Pay As You Grow” loan repayments for small businesses – is specifically designed to give an entrepreneurial helping hand to the growing army of unemployed across Britain, by encouraging them to set up their own online businesses at little to no cost.
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 eBay’s 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. Businesses will 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.
This new scheme will serve as a major cashflow boost at a time when small businesses and entrepreneurs need it most, and as hundreds of thousands of people across the country face unemployment and need to seek new ways to earn a living.
It builds on eBay’s continued efforts to create new economic opportunities right across Britain, following a wide range of seller support policies brought in since the start of the pandemic, and alongside its ongoing investment in eBay for Charity.
Commenting on the offer, Murray Lambell, UK General Manager, eBay said: “Britain is teeming with would-be entrepreneurs and businesspeople. We just need to give them a helping hand and the encouragement they need to get their business up and running. With all the economic challenges we’re seeing across the country, getting rid of the barriers to trading online will really help. We’ve specifically designed this offer for first-time sellers and start-ups – partly to help the growing numbers of unemployed to set up their own businesses and start making money.”
Andrew Goodacre, CEO, British Independent Retailers Association said: “We have been saying for months that more support is needed to help independent retailers survive this crisis. We welcome eBay’s efforts to help small businesses and high street retailers to expand their business online at little cost, and we hope this will go some way in sustaining independent retailers and keeping people employed as the end of furlough approaches.”
Henry Cawley, owner of UK Components and one of the new sellers on eBay, commented: “I set up my business selling 3D printer parts on eBay earlier this year after my university degree was put on hold due to the pandemic. Since then, sales have been increasing month-on-month and show no signs of slowing. I’m now back at university and continuing to grow my business alongside my studies from my bedroom, which means I’ve even been able to give up my part-time job at a local supermarket. I can’t stress enough how easy it was to get started – particularly for young entrepreneurs like me, it means you can develop your business idea without needing to invest in a website or store.”