Private sales are free from March 1st

Like many other companies, Ebay is currently struggling with a drop in sales. That is why the US group now wants to test a new fee model in Germany. All fees for private sales on Ebay should fall.

The corona pandemic has provided an enormous upswing in many areas of online shopping. But in the meantime, many consumers have returned to the inner cities and have shifted their purchases back to the stationary trade.

Of course, the big online retailers are also feeling the effects. It was not until January 2023 that Amazon, for example, announced that it would have to lay off around 18,000 employees.

But Ebay has not been spared from the development either. Because the online marketplace is struggling with a significant drop in sales. A change of strategy that the US group is supposed to help according to that Handelsblatt want to test in Germany.

Ebay eliminates fees for private sales

As of March 1st, the fees for private sales on Ebay are to fall, Germany boss Oliver Klinck said in an interview with Handelsblatt announced.

From March 1st, private sales will be completely free of charge for both sellers and buyers.

This will save private sellers the basic fee of 35 cents in the future. In addition, there is no sales commission of eleven percent.

The pilot project in Germany is primarily intended to boost sales on Ebay. Klinck hopes that the new fee schedule will result in “significant and sustainable growth” for its platform.

Ebay is struggling with a drop in sales

But the US group is not only struggling with a negative development in sales in Germany. Because sales in the USA and Great Britain also shrank last year.

Overall, the online retailer the fourth quarter of 2022 ended with a four percent decline in sales to $2.5 billion. In 2022, eBay generated total sales of $9.8 billion, down 6% overall.

In Germany, for example, sales shrank even more. Here the figure went from 1.249 to 1.023 billion US dollars. A drop of around 18 percent.

What is Ebay hoping for from the abolition of fees?

Although the abolition of fees for Ebay means less income for the time being, Germany boss Klinck hopes this will give his platform new momentum.

The pilot project is a “clearly thought-out bet” and a “very large and conscious investment in our business”. Because private sales are “a core element” of eBay’s business model.

Internal analyzes have shown that private sellers on Ebay also buy significantly more from commercial dealers on the platform. According to Klinck, they would even spend twice as much money as customers who do not sell on Ebay themselves.

Ebay is therefore hoping for more private sellers who may have previously sold on competing platforms without fees. As a result, at some point the turnover from commercial dealers should also increase again.

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