Marketplace seller? Expect fair payment.
The UK is one of the most lively e-commerce markets in the world with online retail worth £127 billion in 2024 [source: Retail Gazette] which equals a whole heap of transactions for small firms.
To ensure payments are made prompt to online sellers, we were delighted last week to launch a marketplace guide and fair payment pledge from some of the UK’s major marketplaces and payment providers who have come together to agree an approach for small firms who may have, for reasons explained in the guide, had their merchant account and funds put on hold.
Current signatories are eBay UK, PayPal, Stripe, SumUp, Temu, OnBuy, B&Q Marketplace, Tesco & Fruugo.com. This is what the partners have agreed to:
1. If accounts are reserved or funds withheld, inform the small business promptly with transparent communication including as far as practical (subject to legal restrictions) information on the reasons for holding funds and timelines for the hold.
2. Provide as clear details as possible as to what steps need to be taken to release funds that are withheld, if permissible under applicable laws.
3. Aim to implement effective and efficient processes to undertake relevant checks, aimed to limit any disruption to cashflow as far as possible.
4. Provide clear terms and conditions around withholding funds and clearly communicate any material changes to sellers.
5. Where investigation shows no legitimate reason for holding funds remain, or where sellers have met all obligations asked of them, ensure funds are released as quickly as practical.
6. Ensure that any decision to impose penalties or require refunds from small businesses is evidence based.
7. Where funds are withheld from a small business, have a process in place to undertake a timely individual case review in response to customer complaints.
8. Enable small businesses to appeal decisions, allowing them to provide further evidence to support their case.
9. Not deliberately target sellers with working capital solutions, outside of general advertising, when funds are being withheld in an attempt to profit.
10. Work constructively with Government and the Small Business Commissioner in promoting this good practice to small businesses.
We are very grateful for their commitment to these points which will deliver fair payment and practice.
As Cassion “Cas” Paton, Founder & CEO of OnBuy, so eloquently said:
“OnBuy was founded on principles of fairness, transparency, and putting sellers first. Signing this pledge isn’t just ticking a box for us – it’s a public affirmation of the way we’re doing business. We believe small businesses should never be left guessing about their money, and this guidance sets the standard that all marketplaces should uphold.”
Work does not stop here and we are in discussion with more signatories, working to announce new partners by the end of 2025.
From speaking at the eBay Top Seller Show 2025 earlier this week (see line-up of winners in image at top of this article!), I saw at close hand the hard work and commitment from e-commerce founders towards scaling their business and it is gratifying to see their enabling platforms and providers matching this commitment with a fair approach to payment.
Thank you to all current signatories and thanks in advance to those following in their footsteps.
PS The late payment consultation closed yesterday. It received an incredible number of responses – thank you to all who submitted. Colleagues in Department for Business & Trade are now considering the government response.