Is eBay a Declining Marketplace What Business Sellers Need to Know for 2025

Introduction

For many years, eBay has been the go-to platform for resellers and business sellers alike, boasting a massive global reach and significant market share. However, as we look toward 2025, questions arise regarding eBay's current performance, the challenges it faces, and what business sellers can do to navigate these changing dynamics.

As an antique dealer based in South Wales, UK, I've been selling on eBay for many years. Recently, I've also established my own website, TSN Antiques.com, and begun selling on platforms such as Vinted, Venia, and Antiques Boutique. Despite the changes, eBay remains my primary selling platform. Its global marketplace and features, like the Global Shipping Program, have made it an attractive option. However, since early 2024, I've observed a decline in views and sales that has prompted me to investigate whether eBay is losing its global dominance.

Current Performance and Challenges Facing eBay

A report by Reuters published on October 30, 2024, indicates that eBay's forecasted revenues for Q4 fell short of expectations, causing concern among investors and a subsequent drop in the company’s stock price. The article attributes this decline to broader economic fluctuations, with customers becoming increasingly cautious about discretionary spending amid inflation. This situation highlights a significant concern: eBay is vulnerable to economic conditions that affect consumer spending ability.

Furthermore, the perception persists that eBay may be seen as a more expensive option compared to its competitors, which could lead to a loss in market share unless eBay can adapt and provide compelling incentives for buyers and sellers alike.

More specifically, eBay UK implemented significant changes on October 1, 2024, eliminating selling fees for private sellers, while business sellers continued to incur typical fees of around 20%. This move generated considerable media attention and an advertising campaign aimed at promoting opportunities for private sellers. Although this strategy previously succeeded in Germany, its effectiveness in the UK remains to be seen.

Despite an uptick in website traffic noted by SimilarWeb from September to October 2024, the data does not reflect a substantial improvement when viewed against previous months. Revenue growth reports from grips intelligence suggesting a 12% increase for eBay.co.uk in the past year also lack comparable historical context for evaluation.

Analyzing my own eBay shop’s performance further illustrates these trends. Comparing October and November of 2023 with the same months in 2024 reveals a significant decline in impressions, views, items sold, and conversion rates. This pattern persists across various segments, indicating a broader issue impacting eBay sellers.

The Rising Costs of Promoted Listings

Another concern for business sellers on eBay is the increasing focus on promoted listings. Sellers pay to boost their search results’ visibility, often bidding percentages higher than the minimum 2%. However, I’ve noticed that eBay’s suggested ad rates have continued to creep up, leaving many sellers beleaguered by mounting costs. For example, my own listings show instances where my chosen promotional percentage has been overridden with higher suggested rates.

This situation raises a critical question: Are eBay's top search results reflecting the best options for buyers, or are they just the results of who pays more? If buyers consistently see higher price points, they may seek alternatives elsewhere.

Competition: What the Landscape Looks Like

Given eBay's challenges, it's essential to observe the growth of its competitors. Etsy is performing well, with Q3 sales exceeding expectations, primarily driven by demand for handmade and vintage items. Vinted has also captured significant attention, reporting a staggering 61% revenue increase in 2023 and successfully expanding its product categories. Meanwhile, TikTok Shop has doubled the number of businesses selling through its platform in the UK, emphasizing live shopping events, which are increasingly popular among consumers.

This analysis indicates a shifting landscape where newer platforms provide not only competitive pricing but also unique features that attract sellers and buyers alike.

Recommendations for Business Sellers

Despite eBay's current struggles, established sellers can take proactive steps to safeguard their businesses moving forward:

Stay Informed: Keep abreast of changes within eBay and monitor trends in the competitive landscape. This knowledge helps in making informed decisions regarding stock, pricing strategies, and overall business planning.
Diversify Platforms: Explore multiple selling platforms such as Etsy, Vinted, and TikTok Shop. Diversification can bring your products to a wider audience and help build brand recognition. Consider cross-listing items on different platforms to maximize exposure.
Create Your Own Website: Establishing a personal website empowers sellers by offering control over branding, presentation, and customer relationships. A website acts as a valuable complement to eBay, allowing for a more direct connection to buyers and potentially higher profit margins by avoiding platform fees.

Conclusion

As we head into 2025, while eBay remains a notable platform, it is facing evident hurdles including declining performance and growing competition. In contrast, rivals like Etsy, Vinted, and TikTok Shop are witnessing growth and engaging buyers effectively. Sellers must be aware of these shifts and adapt their strategies accordingly to maintain competitiveness.

The global Shipping Program remains a valuable feature eBay can capitalize on, but overall, reevaluating their fee structures and promoted listing practices may become necessary to retain their base of sellers and buyers who may seek alternatives in the current market environment.

Keyword

eBay, declining marketplace, business sellers, 2025, performance, challenges, competitors, Etsy, Vinted, TikTok Shop, promoted listings, selling fees, diversification, own website.

FAQ

1. Why are eBay's revenues declining?
eBay's revenues are declining due to broader economic fluctuations affecting discretionary spending, as well as perceptions that it is a more expensive platform compared to competitors.

2. What changes were implemented in the UK regarding eBay’s fees?
As of October 1, 2024, eBay eliminated selling fees for private sellers in the UK, while business sellers continue to pay standard fees, which are around 20%.

3. How can I improve my sales performance on eBay?
Staying informed about market trends, diversifying to other selling platforms, and creating your own website can help enhance your sales performance.

4. Who are eBay's main competitors?
Key competitors include Etsy, Vinted, and TikTok Shop, all of which have been gaining market share through appealing features and pricing.

5. What are promoted listings on eBay?
Promoted listings allow sellers to pay extra to boost the visibility of their items in search results, which can drive sales, but the costs continue to increase.