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  2. The Storage Place Q&A – OnBuy

The Storage Place Q&A – OnBuy

by | Nov 30, 2020 | E-commerce service

As some of you know, we partnered up with OnBuy to make our order fulfilment centre services seamless for merchants selling their products through their eCommerce platform.

We recently held a Question and Answer Session with OnBuy team to answer some important questions for our current and future customers to help their business grow.

Who are OnBuy?

OnBuy is a UK-based, rapidly growing and rapidly globalising eCommerce platform that aims to streamline the way that customers and online sellers connect and trade. Recognised as the world’s fastest-growing marketplace, we promote an ethos of fairness, transparency and ethical eCommerce, with the goal of giving sellers the tools they need to create and enjoy success – as well as offering over 8 million customers (and counting) the chance to shop securely for a huge variety of products across an ever-growing catalogue.

OnBuy ecommerce platform

Why should you choose OnBuy to sell your products?

OnBuy was purposefully created to level the playing field for online retailers – we’re a true marketplace, not a retailer, and each of our products is sold by one of our thousands-strong seller community.

That distinction is important – that OnBuy works with, not against, its seller base. Classically, marketplaces and retailers have welcomed eCommerce entrepreneurs as third-party sellers, meaning that there has always been an element of competition. If a given platform recognised your products as selling well, they would often source that same product for themselves or manufacture it directly, and offer it to customers for a lower price and with stronger marketing than your own listing.

We believe that this is unfair, and this is why OnBuy doesn’t hold any of its own stock, why we never will in the future, and why we are entirely built on a business model of operating as a marketplace, not a retailer with a marketplace platform attached.

Having grown 24,000% in GMV in our first four years of business, and currently underway to embrace over 140 countries outside the UK by 2023 – 40 of which will be live before year-end 2020 – there is a demonstrable and proven appetite in the eCommerce world for a marketplace like OnBuy, and the ways in which we can help sellers to excel.

What fees do OnBuy charge?

OnBuy consciously works to ensure our fees are competitive, with a Transparent Fee Guarantee to ensure all sellers pay the same fees, no matter their size or volume – and they’re never caught out by any unexpected costs. We have no listing fees and selling fees of between 5-9%.

OnBuy offers a service called Boost to help sellers promote their product listings too. While OnBuy proactively enhances the visibility of high-performing products as part of our offering, Boost puts that power in sellers’ hands, letting them offer between 1-10% of the listing price to scale promotion across and beyond OnBuy’s website as they see fit. Boost is risk-free too, as sellers only pay the Boost fee if a product sells through Boost.

Online sellers who join OnBuy do so via a rolling monthly subscription model, in two tiers. The Partner package at £39.00 per month (excluding VAT) is designed for larger-scale businesses, fast-growing SMEs and brand owners themselves, and it features our most comprehensive marketing and promotion of sellers’ products.

For growing eCommerce entrepreneurs, OnBuy offers a Standard subscription at £19.00 (before VAT), with an added layer of protection – Standard sellers who make less than £500 in sales in a given month will see their next month’s subscription fee waived.

How did OnBuy begin?

Online retail entrepreneur Cas Paton launched OnBuy in November 2016, following countless conversations with eCommerce retailers and online businesses about the frustrations they had with the way existing platforms seemed to prioritise their profits over freedom for honest traders to do business.

Similarly, the fact that marketplaces that were active at the time were also retailers in their own right meant that sellers were having to compete with the very routes to market they relied upon. OnBuy was founded to create a fairer approach and a true marketplace, operating on the ethos of transparency and ethical business.

Since OnBuy’s inception, it’s enjoyed continuous growth – which has only accelerated in 2020. Despite the global health crisis and the uncertainty that has been brought by it, 2020 has proven a landmark year for OnBuy.

Not only has the company tripled its team and enacted a £5 million Q4 marketing campaign, including an exclusive TV campaign with ITV that will reach over 44 million consumers, but OnBuy has also initiated a bold globalisation plan that’s anticipated to transform how online sellers connect with customers across the world. By the year 2023, OnBuy will be live in over 140 countries around the world, 40 of those countries coming online for the marketplace before the end of 2020 alone.

What USPs does OnBuy have?

OnBuy was established entirely on the premise of operating differently to other marketplaces across the world. One key aspect of the business that quickly gained traction closer to home was that UK-based sellers enjoyed using a fair and transparent marketplace that was also based in the United Kingdom – it helped British SMEs to feel more supported than an American platform might.

That said, once OnBuy internationalises fully, it will be active as the world’s first truly global marketplace, reaching territories no Western player has been able to reach before, and having ten times the dedicated country sites of Amazon.

It’s worth reinforcing that one of OnBuy’s greatest distinguishing factors is that it’s a marketplace that does not hold stock, and never will. Sellers compete among one another instead of against the platform itself, and OnBuy’s efforts are honed on helping online retailers to sell their products and enjoy their profits in a fair and transparent way.

This is on top of competitive seller fees, partnership with PayPal for secure transactions that release sellers’ funds at the moment an item is dispatched, and UK-based support and account management staff to support sellers every step of the way.

How many customers does OnBuy have?

While globalisation and continuous growth ensure this figure is growing all the time, OnBuy currently enjoys an active customer base of over 8 million customers. While predominantly representative of a UK audience, this figure is expanding to include international buyers more and more.

Once the goal of being online in over 140 countries before the end of 2023 has been realised, OnBuy will unlock an unprecedented 525 million product listings around the world to an audience of millions of shoppers.

Which countries does OnBuy support?

OnBuy is a UK-based business, although sellers using the marketplace can ship to 51 different supported countries worldwide. However, as a concerted push for internationalisation, OnBuy is bringing 40 dedicated country-specific sites online before the end of 2020.

Those 40 countries are only the start of the growth journey, though. By the end of 2023, over 140 countries around the world will be online with their own OnBuy presence, creating a remarkable network that is set to touch territories even the most well-established giants have been unable to reach previously.

Any questions about order fulfilment solutions for OnBuy?

Get in touch to find out how our wide range of order fulfilment solutions integrates with OnBuy ecommerce platform.
Interested in outsourcing your order fulfilment to us?

Get in touch to find out how we can help you improve cash flow & save money and time to excel your business development.


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