Online marketplace OnBuy has reached a major milestone in its bid to take on Amazon as it lists its 200,000th product and begins the countdown to a national TV consumer launch.
The marketplace launched to sellers in November 2016 with the aim of offering UK online traders a credible and ethical alternative to Amazon and eBay, where they often struggle with high commission fees.
In just five months OnBuy has seen huge demand for its offering, which includes the lowest commission fees available for any major online marketplace in the UK.
OnBuy now has thousands of products listed across a cast range of categories including books, DVDs, clothing, furniture, electrical and toys including household names such as LEGO, Star Wars and Transformers.
Sellers to sign up include World of Books Ltd – the largest Amazon bookseller in the UK and the fourth largest Amazon seller in Europe – and Chalky’s, a major UK seller of CDs, DVDs and Blu-Ray movies.
There are now just four weeks to go until the launch of a nationwide TV advertising campaign on ITV1 and ITV2. The consumer launch comes as OnBuy continues to work closely with its sellers – existing and prospective – on its cost-effective packages.
After listening to feedback from sellers, OnBuy has developed packages designed to give them the best value depending on their requirements. Sellers can switch between the following two account types at any time:
OnBuy Seller – Ideal for smaller traders. Sellers pay a subscription of £19 a month and a selling fee of just 6% on products sold – compared to an average of 15% on Amazon and 10% on eBay. Sellers of many electronics items will pay just 3% commission.
OnBuy Partner – a premium offering suited for traders with large numbers of products to sell. Again, OnBuy charges these sellers 6% commission on sales –significantly lower than other major online marketplaces. For an £89 monthly subscription fee they receive all the benefits of the OnBuy seller category plus access to a dedicated account manager, prominent placement of products and on-site advertisements. Sellers of many electronics items will pay just 3% commission.
Cas Paton, Managing Director at OnBuy, explains: “OnBuy’s driving force is to treat sellers fairly, giving them an alternative to the existing platforms, which clobber them with huge selling fees and force them to take lower and lower margins. We believe in our model, which is that straightforward, low-cost options for sellers translate into better prices for consumers. It’s a concept that sellers have bought into enthusiastically, and we now have hundreds of sellers signed up offering hundreds of thousands of products at highly competitive prices.”
Paton continues: “After our initial launch to sellers, we are now entering the next phase of the journey to becoming a credible alternative to Amazon and eBay. As part of that process we have listened to the feedback from sellers and, in close consultation with them, we have developed these seller packages to match their needs. The response so far has been very positive and sellers are making a seamless transition to the new structure.”
“We are Britain’s best value for money online marketplace and the savings our sellers are making is translating to some of the cheapest prices around for consumers,” he says. “For example, we currently have the deluxe version of Ed Sheeran’s smash hit CD, Divide, on offer at just £8.99 – a price which we haven’t seen beaten anywhere online. It’s one small taste of the power of OnBuy and the revolution in online shopping that it is bringing to consumers and sellers alike. There’s just four weeks to go until the OnBuy brand will hit TV screens nationwide and we would urge sellers to get on board before the advertising campaign begins.”
OnBuy has launched a recruitment drive at its Bournemouth and Manchester offices to handle sellers’ accounts and product lines as the platform grows, and is seeing daily leaps in website traffic as awareness grows.
As part of the growth, OnBuy is developing integration with Linnworks, a powerful e-commerce order management technology that helps online retailers automate key processes, reduce costs and grow their business.
Paton adds: “The feedback we’re getting from sellers is that we are precisely the kind of marketplaces they have been looking for as they become jaded with the high fees and the practices of other platforms. We really are about putting sellers and customers first. Some were sceptical when we launched but our rapid growth is demonstrating that there is a real need for this product and huge opportunities ahead. We are very excited about the future of OnBuy.”