eBay’s free C2C strategy expands from Germany to the UK

Interview with Saskia Meier-Andrae, General Manager eBay Germany, on eBay's free C2C strategy

From Germany to the UK: eBay’s Free C2C Strategy Gains Momentum

On October 1, 2024, eBay UK announced that the marketplace would remove most selling fees for consumer-to-consumer (C2C) sales within the UK for domestic transactions across all categories (excluding motors). This strategic shift caused quite a stir in the UK e-commerce scene, with local business media outlets from Internet Retailing to Engadget and Channel-X covering the news extensively. Speculation ran high as to whether the move could help eBay compete with strong rivals like Vinted or Etsy-owned Depop.

An answer to these questions might be found in the market that originated the idea of eBay’s free C2C strategy: Germany. eBay Germany removed all fees for private sellers back in March 2023. At the time, it seemed like a drastic, perhaps even desperate, attempt to halt the decline in GMV and user numbers. And it was a costly one: the German division lost a significant portion of its revenue by forgoing private seller fees.

Clear focus on a valuable User group

On the other hand, it was also a bold and innovative move. After all, eBay’s most valuable users have always been private sellers—this group shops more frequently and spends twice as much on eBay as users who “just” buy on the platform. So it made sense for eBay to directly address this valuable target group with a strategy that simultaneously took aim at eBay’s biggest rival in the German C2C market: the classifieds platform Kleinanzeigen.de.

Eighteen months later, the gamble seems to have paid off. eBay is notoriously reluctant to share country-specific data, but the German eBay team announced last March that the number of C2C items listed had increased by more than 20% over the year, boosting the C2C GMV to “several hundred million euros.” Additionally, the most valuable user group of seller-buyers on eBay had grown by 20%.

We spoke to Saskia Meier-Andrae, General Manager at eBay Germany, to learn more about the new C2C strategy and why it is now being adopted by eBay UK.

Saskia Meier-Andrae: “The Flywheel has proven itself!”

Saskia, eBay Germany pioneered the introduction of free C2C selling. How did you experience this step?

Saskia Meier-Andrae: The introduction of the free C2C model was an important and courageous step – and it was actually the deciding factor for me when the opportunity arose for me to join eBay Germany as Managing Director at the beginning of the year. I see supporting the switch back to a clear commitment to C2C as an enormous development opportunity. When the free C2C model was introduced in Germany, it was a major entrepreneurial risk – after all, we gave up a significant portion of our revenue. But we see it as a marketing investment and a customer acquisition tool.

What triggered this step?

Meier-Andrae: One reason for the decision was that eBay had moved away from its original consumer-to-consumer business over the years. The company had lost its way to some extent. The change back to C2C and the introduction of free selling were a strategic correction. We wanted to strengthen the core of the eBay brand, which lies in the C2C area, among other things.

The First results

eBay’s free C2C strategy has been in place on eBay Germany for about a year and a half now. Was the experiment worth it?

Meier-Andrae: We are seeing very positive results in Germany. The ‘flywheel’ has proven itself: the free sales option has increased the number of private sellers on eBay – and a large proportion of these private sellers also become buyers when they use the platform, which in turn clearly benefits commercial sellers. Part of this success is surely also due to the fact that C2C has been well established as a concept in Germany for years, so people already have an affinity for it. It’s a different story in other markets. In the US, for example, the potential of C2C is far from exhausted.

What particular challenges did you face during implementation?

Meier-Andrae: One of the biggest challenges, but at the same time a great opportunity for us, is to make trading secure. The C2C area is susceptible to fraud. eBay clearly sets itself apart from its competitors with the promise: We offer secure C2C. We offer secure payment processes and invest heavily in buyer and seller protection, both in the C2C and B2C environment – we already offer a range of certification centres here and will continue to expand this. We offer this service to customers free of charge. No competitor can currently keep up with that.

German learnings = British success

What do you think of the launch of the free C2C model in the UK? Is eBay Germany setting an international precedent with this?

Meier-Andrae: With our initiative in Germany last year, we showed that eliminating sales fees improves our marketplace and makes us more competitive in the long term. This success in Germany was a decisive factor in the decision to also drop the fees in the UK. Accordingly, I am confident that we will also see a revival of marketplace business in the UK. This will ultimately benefit the entire company, the entire marketplace and, in turn, our customers. I am excited about this prospect!

Re-commerce is also a key topic for eBay. What is your strategy here?

Meier-Andrae: Re-commerce is a central pillar for us and already accounts for 40 per cent of our trading volume. The high-priced re-commerce sector, for example refurbished products, is particularly interesting for us. In the re-commerce sector, many brands on our platform pursue a clever dual strategy by offering both new and refurbished products. We proactively support this because we want to offer the entire range transparently to the end customer. In addition, a separate group of dealers has emerged in the refurbished sector in Germany that considers eBay to be their natural home. We want to maintain and expand this status.

What are the next steps for eBay in Germany?

Meier-Andrae: Expanding the C2C business and strengthening re-commerce remain at the top of my list of priorities. But we are also improving many other areas, such as our offers for brands. We recently launched the ‘Brand Cockpit’, which not only includes direct sales by brands, but also by authorised dealers. This enables brands to control promotions and advertising in a targeted manner.

Saskia, thanks a lot for your time!

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