eBay UK has announced the launch of a new ‘Pay As You Grow’ scheme for startups and small businesses.
Starting on 9 October, new sellers will not be charged any fees until they have made over 100 sales in a month. You don’t have to create a new account: you just need to have not sold anything before on eBay.
If you make more than 100 sales before the first month is up, there’s a 50% reduction of fees for the next 100 sales and a 25% reduction for the following 100 sales each month.
Listing fees – called insertion fees – aren’t that expensive, but sellers pay a ‘final value fee’, which is a proportion of the amount the item sold for, and this can mount up quickly, especially if you’re selling high-value items.
Taking inspiration from the Government’s ‘Pay As You Grow’ loan repayments, eBay has decided to give entrepreneurs the opportunity to sell online with no costs to start with.
The government policy was announced in September to give businesses flexibility to repay the Bounce Back Loan, cutting monthly repayments by nearly half.
“Britain is teaming 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,” said Murray Lambell, UK general manager, eBay.
“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.”
According to eBay, it noticed a 335% surge in the number of new businesses that joined the platform in June and a 39% increase from April as a result of the lockdown.
“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,” said Henry Cawley, owner of UK components.
“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.”
The offer will be available for the first 90 days after registration, and the scheme will end on 31 December 2020. It is only available for first-time sellers.
If you’re tempted, then read these tips for selling on eBay.