There has been a boom in online shops being started from the sofa in the pandemic with a 237 per cent surge in new businesses launching on eBay compared to last year, the equivalent to one registering every two minutes, new data has revealed.
New small firms sold over 72million items through eBay last year as a generation of ‘pandemic start-ups’ emerge, according to data from the marketplace.
It found that home and garden, electronics and fashion were the most popular categories for new businesses setting up on eBay in the last year, with the greatest number of businesses created.
This is likely due to budding entrepreneurs looking to capitalise on the trend for lockdown home renovations and the need to invest in working from home tech and electronics.
New small firms sold over 72million items through eBay last year thanks to ‘pandemic startups’
It isn’t just small businesses on eBay that are flourishing with 50 per cent of of small business owners predicting their business performance will improve in the next three months, according to a study by the Federation of Small Businesses.
This is compared to 32 per cent who expect it to worsen, according to the study of more than 1,500 firms.
Growth and hiring aspirations are at high levels with 21 per cent intending to increase staffing levels in the next three months and 54 per cent expecting to grow their businesses, the highest proportion since the beginning of 2017.
Figures from the ONS also showed the percentage of businesses currently trading has increased steadily from 71 per cent in January 2021 to 88 per cent in late June 2021, the highest percentage since comparable estimates began in June 2020.
This highlights more people shopping as the final phase of restrictions are lifted. To help those adjusting, eBay is launching a Small Business Power campaign.
The new package of support includes a series of new seller offers, including reducing fees by 5 per cent as well as 75 per cent off new listing costs for existing and new business sellers to help them make the most of selling online.
It is also offering coupons and discounts for shoppers to incentivise purchasing from small businesses, investment in training programmes to help sellers make the most of the platform and greater investment in marketing small business sellers.
This new package follows a £33million investment from eBay over the last year to help its community of hundreds of thousands of small businesses weather the challenges brought on by Covid-19.
These measures included the waiving of fees, new marketing costs and training schemes to help during the height of the pandemic.
Rob Hattrell, head of eBay Europe said: ‘Business will be paying the price of Covid for years to come, and it’s small businesses that will bear the brunt of this.
‘It is now more important than ever to shop small and shop local – whether that is in-store or online – and to keep supporting and celebrating the power of small businesses.’
Could you make money from home?
Separate research from the online marketplace revealed families could be sitting on £1,236 worth of unwanted lockdown clutter.
It found that from March 2020 to March 2021, consumers made an average of 17 frivolous purchases during lockdown, with one third of UK adults making more than 26 purchases.
Home and garden, electronics and fashion were the most popular categories for new businesses setting up on eBay in the last year
However, now restrictions have eased many are in need of a bit of extra cash.
Over the last year, the average second-hand seller on eBay sold three pre-loved items, making approximately £81 in 2021.
Emma Grant, eBay’s head of Pre-loved, said: ‘One family’s lockdown pastime is now another’s new found hobby. There’s money to be made to make summer that bit sweeter as restrictions ease and we want to support families getting back to doing everything they enjoy.’
eBay your clutter away: Families could be sitting on £1,236 worth of unwanted lockdown clutter, according to research.
Ebay has analysed its data to see how much each member of the family could earn from lockdown past-times as well as giving the average selling price of some of the most popular items for each age group.
18 to 34 year-olds
Over lockdown, younger generations invested in traditional pastime essentials like fishing rods and embroidery hoops. Some 43 per cent purchased a coffee machine with a further 48 per cent buying board games.
If they sold many of their lockdown purchases, they could make hundreds of pounds, according to eBay.
Board games sell for an average of £21 on eBay, the online marketplace revealed
● Board games – £21
● Coffee machine – £71
● Yoga mat – £14
● Embroidery hoop – £14
● Ice cream maker – £33
● Fishing rod – £42
● Weights – £46
● Electric keyboard – £216
Total: £457
35 to 54 year-olds
Looking to get fit and do up the house, 35 to 54 year olds tried new sports and got into DIY and renovating with 44 per cent purchasing new running shoes.
Many set of golf clubs are also gathering dust and could earn sellers £86 if sold on eBay.
Making money: Second hand robotic hoovers sell for an average of £76 on eBay, data shows
● Headphones – £20
● Running shoes – £27
● Jigsaw puzzle – £41
● Popcorn machine – £38
● Robotic hoover – £76
● Electric drill – £31
● Golf clubs – £86
● Stand mixer – £92
Total: £411
55+ year-olds
This age group hit the garden with 50 per cent buying seeds and 31 per cent investing in new plant pots whilst embracing new skills and hobbies like playing the ukulele.
Ukeleles were a popular purchase for the older generation and sell for around £12
● Novelty slippers – £12
● Smartphone – £238
● Deck chair – £37
● Plant pot – £12
● Pots & Pans – £32
● Ukulele – £12
● Fire pit – £88
● Parasol – £81