Online giant eBay expects sales by retailers and other big sellers of product on its site to grow to £1bn.

Last year eBay made a concerted effort to attract retailers and similar businesses by changing its fee structure, prompting a surge of store groups and brands to its site.

EBay UK head of business development Angus McCarey said that the business stream has the potential to hit the£1bn mark in the next five years.
He said the downturn has increased retailers’ surplus stock, making eBay a more appealing sales channel.

Argos and Shop Direct Group are among those already to have launched branded clearance sites on eBay. McCarey said sales from such ventures have begun to dispel the stigma formerly attached to selling on the site.

He said eBay is not worried about the growing numbers of marketplace sellers on sites such as Amazon, Play.com and the channel to be launched this year by Asos.

“We have invested a lot in the model. This is our market to lose, but I don’t think it hurts us to have other legitimate marketplace offers,” said McCarey.