eBay: UK profit surges after selling fees removed
Profit at the UK arm of eBay has surged despite its decision to waive selling fees impacting its revenue during its latest financial year, it has been revealed.
The division of the US giant has posted a pre-tax profit of £36.5m for 2024, up from the £2.7m it achieved in 2023.
New accounts filed with Companies House also show its revenue fell in the year from £1.28bn to £1.16bn.
The company said that its revenue fell by 10 per cent in 2024 “primarily due to the ‘Free to Sell’ campaign in the UK”.
It added that its profit increased “mainly on account of [a] decrease in administrative expenses due to [an] impairment of investment in 2023”.
According to eBay UK’s latest results, the average number of people employed by the company in 2024 fell from 356 to 299.
However, those figures are contradicted by a fall from 315 to 300 elsewhere in the accounts.
The division’s made a total post-tax profit of £24.6m in 2024, having lost £7.7m in 2023.
A statement signed off by the board said: “During the year, the company delivered an improved performance, achieving a return to profitability.
“The improvement in results was primarily driven by stronger cost management and operational efficiencies, which supported a positive operating margin.
“The directors expect continued focus on sustainable profitability through disciplined cost control and ongoing investment in customer experience and operational resilience to support long-term growth.”
For the same financial year, the wider eBay group posted a revenue of $10.3bn (£7.7bn), a rise of two per cent.
Earlier this month, eBay unveiled a £3m initiative to provide up to 10,000 small enterprises with fully funded access to OpenAI-powered tools and tailored training to boost productivity and drive growth.
In the summer, the UK arm of eBay published a report which stated that a wave of online small and medium-sized enterprise (SME) entrepreneurs were showing confidence in their future, despite wider economic pressures.
The study found that nearly four in five, or 78 per cent, of online small businesses expect to see growth over the next 12 months, with a third feeling “very confident”.
How eBay compares to its UK rivals
The latest results for the UK arm of eBay come after rival Vinted posted a revenue of €813.3m (£707.5m) for 2024, up from the €£596.3m it achieved in 2023.
Accounts filed with Companies House in May also showed its pre-tax profit increased from €33.2m to €95.3m over the same period.
During 2024 Vinted also grew its headcount from 1,743 to 2,080.
Also earlier this year, the Lithuanian-founded secondhand marketplace launched its own venture capital arm and announced it was looking to invest in UK start ups.
Recently filed results for the UK division of Etsy also revealed a rise in turnover but a slight drop in profit for 2024.
The company’s turnover in this country increased from £9m to £11.8m during its latest financial year but its pre-tax profit fell from £408,434 to £307,276.
Meanwhile, Morning Wire reported in July that Not On The High Street had continued to slash jobs in a bid to stem its widening losses amid falling sales.
The Bristol-headquartered business cut its headcount in March this year having also shed 70 members of staff in the prior 12 months.
The update was revealed in accounts filed with Companies House which were published more than seven months after the deadline and 16 months after the end of its financial year.
Not on the High Street’s pre-tax losses widened from £38.9m to £44.4m in the year to 31 March, 2024. Over the same period, its revenue also declined from £29m to £25.8m.