E-commerce giant eBay has eliminated final-value sales fees for all domestic items in the UK, except for cars, as it responds to increasing competition from newer marketplaces. This move is similar to a previous initiative in Germany and aligns eBay with platforms like Vinted and Depop, which do not charge seller fees.

The decision comes amid rising consumer prices in the UK, driving demand for affordable second-hand goods. The second-hand fashion market, in particular, saw an 18% growth last year, reaching $197 billion globally. Vinted recently achieved profitability, with sales rising by 61% to nearly €600 million in 2023, while Depop has also reported growth in sales.

With this update, eBay will not charge sellers final-value fees, allowing them to retain more of their profits. Additionally, there will be no insertion fees for the first 300 items listed, after which a fee of £0.35 per item will apply. Final-value fees, as defined by eBay, are based on the total sale value, including item price, shipping, and taxes.

eBay's strategy aims to lower barriers for customer-to-customer (C2C) selling, thus broadening inventory options for buyers. CEO Jamie Iannone mentioned that the initiative in Germany had a positive impact on marketplace strength.

As eBay attracts more sellers and buyers, it anticipates opportunities to monetize through other channels like advertising and financial services. Iannone also hinted at a potential new "buyer-facing" fee set to be introduced next year, reminiscent of Vinted's model. While there's no confirmation about extending this strategy to other countries, eBay's top markets include the U.S., UK, and Germany, suggesting it may consider similar fee removals in its domestic market.