Founded in 2016 by British entrepreneur Cas Paton, OnBuy.com is a UK-based e-commerce marketplace that set out to do something different from the likes of Amazon and eBay. At the heart of its mission is a commitment to transparency, fairness, and ethical business practices—concepts that have resonated with both buyers and sellers in the increasingly competitive world of online retail. Unlike its bigger counterparts, OnBuy doesn’t stock its own products, and this creates what Paton calls a “level playing field” for all sellers.
But in a marketplace dominated by corporate behemoths, can OnBuy really make a dent? Let’s explore how it started, what makes it unique, and what challenges and opportunities lie ahead for this rapidly growing platform.
The Beginnings of OnBuy: A Mission Rooted in Fairness
Cas Paton founded OnBuy with the vision to create a marketplace that champions transparency and fairness. As a former web developer and business consultant, Paton had worked with a wide range of businesses, including consulting for NATO. His experience gave him insight into the growing dominance of Amazon and the perceived imbalance it created for sellers, who often found themselves competing directly with the marketplace’s own products.
Frustrated by what he saw as a conflict of interest in Amazon’s business model, Paton launched OnBuy to provide an alternative—one that gave all sellers equal visibility and opportunities. “We don’t compete with our sellers. We support them,” Paton has said in interviews. This was a critical differentiator from platforms like Amazon, where third-party sellers frequently compete against Amazon’s own products.
Rapid Growth and Profitability
Starting an e-commerce platform from scratch is no easy feat, and OnBuy had its fair share of challenges. With no sellers or products on day one, it relied on Paton’s relentless push to onboard businesses and drive traffic to the site. The platform began to grow steadily, but it was in 2020, amid the COVID-19 pandemic, that OnBuy really took off.
During the pandemic, as physical stores closed and shoppers migrated online, OnBuy’s monthly sales soared, increasing by 600%. This surge in demand prompted the platform to quadruple its workforce, from just 14 employees to more than 60 by the end of the year. OnBuy became one of the few companies to experience accelerated growth during the pandemic, expanding its product range and increasing its user base.
In November 2023, OnBuy reported its first profitable month, signaling a major turning point for the business. The marketplace currently hosts over 21 million products from more than 3,000 sellers and has built a customer base of around 8 million buyers. This profitability milestone is particularly notable given the highly competitive and margin-sensitive nature of the online retail space.
A Closer Look at OnBuy’s Business Model
OnBuy’s business model is designed to be as seller-friendly as possible. Unlike Amazon and other large competitors, OnBuy does not take a stake in the products listed on its platform, meaning that it doesn’t prioritize its own stock over third-party sellers. Instead, OnBuy makes its money through sales fees, which are significantly lower than those on Amazon or eBay. OnBuy charges sellers between 5% and 9% in fees per sale, compared to Amazon’s rates, which can be as high as 15% for certain categories.
OnBuy also allows sellers to retain full control over their inventory, pricing, and fulfillment. Sellers choose their own delivery methods and prices, and they aren’t subject to the often-criticized fulfillment constraints imposed by Amazon’s FBA (Fulfillment by Amazon) program.
Another key difference is that OnBuy doesn’t compete with its sellers. On marketplaces like Amazon, third-party sellers frequently complain about competing against Amazon’s own “private label” products, which benefit from enhanced visibility and preferential treatment in search results. By contrast, OnBuy’s model ensures that all sellers have equal opportunities to reach customers without fear of being undercut by the platform itself.
Financial Backing and Expansion
Financially, OnBuy has secured substantial backing from venture capital firms, which has enabled it to scale rapidly. The company’s £35 million Series A funding round in 2022 provided the capital needed for platform upgrades, logistics improvements, and international expansion. Currently, OnBuy is focused on launching in 42 countries, including key markets like the US, Canada, and Australia.
Cas Paton has also hinted at future crowdfunding campaigns, stating that he would like to involve both sellers and customers in the company’s growth plans through equity crowdfunding. “We want our sellers and customers to be part of this journey,” Paton said when discussing the possibility of opening up investment opportunities.
Customer Reviews: Buyers and Sellers Speak Out
Like any growing platform, OnBuy has received a range of reviews from both buyers and sellers. On the review site Trustpilot, OnBuy has maintained an average rating of 4.5 out of 5 stars, with many buyers praising the platform for its wide range of products and competitive pricing. Common buyer feedback highlights the user-friendly interface and trustworthy sellers, which has helped boost the platform’s reputation as a reliable marketplace.
However, some reviews point to issues with customer service and delivery times, especially when products are shipped internationally. As OnBuy relies on third-party sellers for fulfillment, the delivery experience can vary greatly depending on the seller. This has led to some negative reviews, with customers reporting delays in receiving their orders or difficulty in resolving issues with their purchases.
From a seller’s perspective, OnBuy generally receives positive reviews. Many sellers appreciate the lower fees compared to Amazon and eBay, and they frequently cite OnBuy’s ethical approach as a key reason for choosing the platform. Sellers have also praised OnBuy for not competing with them through its own product listings, something Amazon has been widely criticized for. However, there are still concerns about scaling up operations and maintaining customer satisfaction as the platform expands.
Challenges and Opportunities
While OnBuy has made impressive strides, it faces significant challenges as it continues to expand. One of the primary challenges is logistics. Unlike Amazon, OnBuy does not have its own delivery infrastructure, meaning that it relies entirely on third-party carriers for shipping. This creates variability in the customer experience, particularly when dealing with international shipments.
Another challenge is scaling its customer service operations. As the platform grows, OnBuy will need to ensure it can maintain the level of service expected by both buyers and sellers. Customer service complaints are one area that could impact OnBuy’s reputation if not addressed effectively.
On the flip side, there are tremendous opportunities for growth. The international expansion into 42 countries represents a massive opportunity for OnBuy to tap into new markets and compete with global players like Amazon and Alibaba. With its ethical stance and seller-friendly business model, OnBuy has the potential to carve out a significant niche in the crowded e-commerce landscape.
The Future of OnBuy: Ready for Global Expansion
With its first profitable month under its belt and a growing base of buyers and sellers, OnBuy is well-positioned to continue its expansion both in the UK and globally. Founder Cas Paton’s vision of a fair, transparent, and ethical marketplace has resonated with small and medium-sized businesses, and the company’s continued growth suggests that it could become a serious competitor in the global e-commerce space.
As OnBuy prepares to roll out in 42 new countries, the platform is gearing up for its next phase of growth. If it can overcome the logistical and customer service challenges that come with scaling, OnBuy could very well become the go-to marketplace for both buyers and sellers looking for an alternative to the dominance of Amazon and eBay.
