eBay UK seller fee removal sends revenue down but profits rise

eBay (UK) Limited has filed its accounts for 2024 and they show a return to profitability, helped by stronger cost management and operational efficiencies.

These supported a positive operating margin and the company continues to expect to report ongoing profits based on the same careful cost and operational controls, as well as via ongoing investment in customer experience.

That said, the company’s revenue for the latest year actually fell 10%, mainly due to the Free To Sell campaign in the UK, which removed selling fees.

Was this the right approach? We have to assume it was as the company seems committed to it. But while profit increased, the company said this was due to falling administrative expenses on the back of an impairment of investment in 2023.

Looking at the headline numbers, total revenue fell to £1.16 billion from £1.28 billion in 2023. Operating profit jumped to £27.8 million from a loss of £6.1 million the year before, pre-tax profit was £36.5 million after just £2.7 million in the previous period, and net profit for the year was £24.68 million after a £7.7 million loss the year before.

There was no clue as to how 2025 has been going. But eBay has been very busy in the UK this year, from launching celebrity charity auctions to expanding its authentication guarantee, linking with M&S and Nobody’s Child on resale, and continuing to link with Love Island. While not all of these initiatives are designed to boost profits, they all raise awareness of eBay and promote the idea of secondhand fashion as the way forward.

But eBay admitted that the segment in which it operates is “intensively competitive” with a wide variety of options open to both its sellers and buyers.