Sustainability-in-Tech : AI-Designed Bacteria Creates Rubber Alternative
Paris-based biotech startup BaCta, which has just secured €3.3 million in funding, produces natural rubber using genetically engineered bacteria, thereby offering a sustainable alternative to traditional rubber sources and synthetic, petroleum-based versions.
What’s The Problem With How We Get Rubber Now?
The current methods of rubber production present several significant environmental and sustainability issues. Synthetic rubber, which makes up about half of the global supply, is derived from petroleum-based chemicals. This process is highly energy-intensive and contributes heavily to CO2 emissions, exacerbating climate change. Also, synthetic rubber is non-biodegradable, meaning it persists in the environment, adding to the growing issue of plastic waste pollution.
Natural rubber, sourced from Hevea trees, is also not without its problems. While it may seem more environmentally friendly, the growing demand for rubber has driven deforestation in tropical regions, where land is cleared for plantations. This not only destroys vital ecosystems and reduces biodiversity but also releases significant amounts of carbon stored in trees and soil, further worsening climate change. Also, these rubber plantations are typically monocultures, which can degrade soil health and make crops more vulnerable to pests and disease.
Both forms of rubber production are under increasing pressure as manufacturers face stricter emissions regulations. The deforestation linked to natural rubber and the reliance on petrochemicals for synthetic rubber are incompatible with global sustainability goals. The industry also often suffers from supply chain instability, compounded by climate change and socio-political issues in rubber-producing regions.
Factors such as these have led to growing interest in alternatives like BaCta’s bioengineered rubber, which aims to offer a carbon-neutral, renewable solution that mitigates the environmental and ethical concerns associated with traditional rubber production.
How Does BaCta Make Rubber From Bacteria?
BaCta produces rubber using genetically engineered bacteria, specifically Escherichia coli. The process begins by feeding these bacteria a renewable feedstock, such as glucose, acetate, or even carbon directly captured from the atmosphere. Inside the bacteria, AI-designed enzymes transform the carbon source into isoprene, the key building block of rubber. The bacteria then polymerise the isoprene into natural rubber through a unique synthetic pathway. The resulting synthetic rubber is then extracted and purified. This method allows BaCta to create high-quality, carbon-neutral rubber without the environmental downsides of traditional methods, such as deforestation or petrochemical dependence.
Benefits
BaCta’s synthetic rubber offers several key benefits. For example:
– Carbon neutrality. The production process is designed to be carbon-neutral, and potentially even carbon-negative, significantly reducing the carbon footprint compared to traditional rubber production. BaCta says on its website that not using traditional rubber could mean, “More than 500 million tons eqCO2 could be removed every year”.
– It uses renewable feedstock. BaCta uses renewable sources like glucose, acetate, and carbon in its synthetic rubber production, thereby avoiding reliance on petroleum (used in synthetic rubber) or deforestation (linked to natural rubber).
– It’s hypoallergenic. By engineering the bacteria to remove specific proteins found in natural rubber (sap), BaCta’s rubber can be hypoallergenic, reducing the risk of allergic reactions.
– It’s sustainable. The process avoids the environmental issues of deforestation and land degradation associated with rubber plantations, making it a more sustainable option.
– It’s high quality. BaCta says its material is, “Superior quality Long chain, ultra-low impurity content, hypoallergenic rubber”.
– Cost competitiveness. BaCta aims to produce rubber at a price point that’s competitive with conventional rubber (at a “fixed price, no fluctuation, no uncertainty”), while delivering environmental benefits.
Has A Functioning ‘Proof of Concept’
BaCta has moved beyond the conceptual stage and already has a functioning proof of concept (PoC) for producing natural rubber using the engineered bacteria. That said, although company has successfully demonstrated the process in the lab, it is still in the early stages of scaling up production. Currently, BaCta is working on increasing its output, aiming to move from laboratory-scale production (milligrams of rubber) to industrial levels, with the next step being a pilot-scale operation involving larger fermenters.
Funding
The company recently secured €3.3 million in funding from investors including OVNI Capital, Kima Ventures, and several business angels. This funding is intended to support the scale-up process, helping BaCta transition from producing small batches to larger quantities needed for commercial use.
Rubber For What?
Initially, BaCta plans to start by targeting the luxury fashion industry, e.g. for use in the manufacture of premium shoes and bags, which requires smaller amounts of high-quality rubber, before expanding into more industrial applications.
What Does This Mean For Your Organisation?
BaCta’s innovative approach to rubber production could have far-reaching implications for the many industries that rely heavily on rubber. From automotive manufacturers, which use rubber for tyres, seals, and various components, to healthcare sectors that depend on rubber for gloves, tubing, and other essential products, the potential applications of BaCta’s sustainable rubber are vast. Although BaCta’s initial target is businesses in the fashion industry, by providing a carbon-neutral, renewable alternative to traditional rubber, BaCta can potentially offer businesses in many industries a chance to significantly reduce their environmental impact. This is especially important as industries face mounting pressure to meet stringent emissions regulations and consumer demand for sustainable products.
For businesses, switching to BaCta’s bioengineered rubber could mean not only reducing their carbon footprints but also gaining a competitive edge in a marketplace that increasingly values eco-friendly practices. With its ability to produce hypoallergenic, high-quality rubber that is cost-competitive with traditional options, BaCta’s product could easily replace conventional rubber without sacrificing performance or cost efficiency. Also, as supply chain disruptions and resource scarcity become more prevalent due to climate change, BaCta’s method, which bypasses the need for deforestation and petrochemicals, presents a more stable and sustainable alternative.
As BaCta scales up its production, it could also help businesses mitigate the risks associated with the volatility of traditional rubber supply chains, which are often subject to geopolitical tensions and environmental degradation. If widely adopted, this new form of rubber could lead to a significant reduction in global CO2 emissions and deforestation, offering industries a pathway to sustainable growth while aligning with global climate goals. BaCta’s synthetic rubber could, therefore, reshape the future of rubber-reliant industries, making sustainability a reality.
Video Update : 5 Ideas For Better AI Prompts
This video tutorial suggest five ideas to give better prompts to generative AI, resulting in better and more accurate results.
[Note – To Watch This Video without glitches/interruptions, It’s best to download it first].
Tech Tip – Use “Virtual Keyboard” for On-Screen Typing
The Virtual Keyboard can be a lifesaver if your physical keyboard is malfunctioning or unavailable, allowing you to type directly on the screen with your mouse or touchscreen. Here’s how to access it:
To Enable the Virtual Keyboard
– Press Win + S and type ‘On-Screen Keyboard’, then select the app from the search results.
Use the Virtual Keyboard
– A keyboard will appear on your screen, allowing you to type using your mouse or by tapping the screen (if your device is touchscreen-enabled).
– This feature is helpful when you’re working remotely or troubleshooting hardware issues.
Featured Article : AI Safety-Bill Killed (Well, Blocked)
Following California Governor Gavin Newsom vetoing a landmark AI safety bill aimed at regulating the development and deployment of advanced AI systems, we look at the reasons why it was blocked and the implications of doing so.
What Bill?
US Senate ‘Bill 1047’ relates to regulating AI systems with the focus specifically around frontier AI models (highly advanced/cutting edge and large) with the potential for large-scale impact.
California
The fact that California is home to major AI companies like OpenAI (which also partners with Microsoft), and its governor vetoed it, means there are implications for the future of AI governance and industry practices worldwide. For example, Gavin Newsom said in his statement about the bill “California is home to 32 of the world’s 50 leading Al companies, pioneers in one of the most significant technological advances in modern history”.
The Key Points
The key points of the bill were:
– Risk mitigation for frontier AI models. The bill targeted large AI systems, particularly those that required significant computational power to develop (at least 10^26 FLOPS). It required companies developing such systems to implement safeguards to prevent catastrophic harm, including the misuse of AI for creating weapons of mass destruction, committing serious crimes like murder, or launching cyberattacks that could cause significant damage (e.g. over $500 million).
– A “kill switch requirement”. Under the bill, developers would have been required to implement a “kill switch” mechanism to immediately halt the operations of AI models if they posed a threat, during both training and usage.
– Cybersecurity measures. Companies were required to have strict cybersecurity protocols in place to prevent the unauthorised use or modification of these powerful AI systems.
– Oversight and reporting. The bill proposed the creation of a “Board of Frontier Models”, a new state entity, to oversee the compliance of these companies with the safety measures. Regular audits and detailed reports on safety protocols were part of the requirements.
– Whistleblower protections. The bill also included protections for employees who reported non-compliance within their organisations.
Opposition From Big Tech Companies
Major tech companies, including OpenAI, Google, and Meta, strongly opposed the bill, arguing that the regulations could significantly slow down innovation and hinder the deployment of beneficial AI technologies. With these companies being invested heavily in the development of AI, viewing it as a key future revenue source, it’s perhaps not surprising that they saw the bill as a threat to that potential. Also, there were concerns within the tech community that open-source AI models, which often rely on collaborative, decentralised development, could face legal liabilities under the bill’s stringent requirements. This risk, they argued, could discourage further development of open-source AI, which has been an important driver of innovation in the field. The tech giants feared that the bill’s overly strict regulations could stifle growth and limit the industry’s ability to remain competitive globally.
Why Was The Bill Vetoed By Newsom?
In an official statement, the California state governor gave the following main reasons for blocking the bill:
– An overly narrow focus. Newsom argued that the bill only targeted large, expensive AI models based on their computational scale and costs, which could give a false sense of security. He pointed out that smaller, specialised models could pose similar risks but were not covered by the bill.
– A lack of adaptability. The governor emphasised that AI is evolving rapidly, and the bill’s framework was too rigid, not allowing flexibility to adapt to technological advancements. He stressed that regulation needs to be able to keep pace with innovation.
– It ignored deployment context. Newsom criticised SB 1047 for failing to consider where and how AI models are used, whether in high-risk environments or for critical decision-making, arguing that this oversight made the regulation less effective.
– The potential for stifling of innovation. He also expressed concern that the bill could curtail innovation by applying stringent standards to even basic AI systems, which may inhibit the development of AI technologies that benefit the public.
– A lack of empirical evidence. Newsom insisted that any AI regulation must be based on empirical evidence and analysis of AI systems’ actual risks and capabilities. He argued that SB 1047 lacked this necessary foundation.
– Preference for broader collaboration. Instead of a California-only approach, Newsom said he favoured working with federal partners, experts, and institutions to craft a balanced and informed AI regulatory framework.
The Response
Although Newsom’s blockage of the bill may have pleased the big AI companies, not everyone was happy about it. For example, California state Senator Scott Wiener, who represents the 11th district, encompassing San Francisco and parts of San Mateo County, has strongly criticised Governor Newsom’s decision to veto Senate Bill 1047. In a press release, Mr Wiener expressed deep concern about the implications for public safety and AI regulation, arguing that that the bill was designed to introduce commonsense safeguards to protect the public from significant risks posed by advanced AI systems, such as cyberattacks, the creation of biological or chemical weapons, and other harmful applications.
He emphasised that while AI labs have made commitments to monitor and mitigate these risks, voluntary actions are not enforceable, making binding regulation crucial. Senator Wiener said, “This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from U.S. policymakers,” highlighting the lack of meaningful federal regulation as a critical issue.
Wiener also dismissed the claim that SB 1047 was not based on empirical evidence, calling it “patently absurd,” given that the bill was crafted with input from leading AI experts. Mr Wiener has made it clear that he views the veto as a missed opportunity for California to lead on innovative tech regulation, similar to past actions on data privacy and net neutrality, saying, “We are all less safe as a result.”
However, despite the setback, Wiener expressed hope that the debate has advanced the issue of AI safety globally and vowed to continue working towards effective AI regulation.
Ever-Present AI?
Newsom’s vetoing of the bill comes at the same time as Microsoft’s head of AI, Mustafa Suleyman, saying that he believes that (AI) assistants with a “really good long-term memory” are just a year away in development. Suleyman’s comments refer to “ever present, persistent, very capable co-pilot companions in your everyday life”, which aligns with the idea of the view of many that to make AI truly useful / to leverage the full benefits of AI, integration is necessary. For example, an AI assistant can only organise your schedule if it has full access to your diary and remembers past interactions.
This concept of deeply integrated AI assistants actually ties directly into the debate around Senate Bill 1047, which Governor Gavin Newsom recently vetoed. The bill sought to regulate advanced AI systems, ensuring safety protocols for powerful models. As ever-present AI systems become more common, the absence of legislation like SB 1047 leaves critical questions about how these systems will be governed. Newsom’s veto reflects ongoing concerns about stifling innovation, yet it also leaves unresolved issues around privacy, security, and the unchecked expansion of AI into daily life, which these emerging technologies are set to accelerate. It can be argued, therefore, that without comprehensive safeguards, the integration of AI into personal and professional spaces may pose significant risks, e.g. data security and privacy, not to mention the risk of AI tools giving incorrect information or advice or displaying inbuilt bias towards the user they are supposed to be helping.
Six-Fingered Gloves
In a strange but related aside, a Finnish startup, Saidot, recently sent ominous six-fingered gloves to global tech leaders (including OpenAI’s Sam Altman) and EU politicians (and the UK Prime Minister) as a symbolic warning of AI dangers, particularly highlighting how image generators sometimes produce flawed outputs, like extra fingers. The gesture was aimed at raising awareness about the fast-evolving and unpredictable nature of AI, which could lead to unexpected consequences. Saidot’s CCO and co-founder, Veera Siivonen, said: “AI is developing so fast that nobody can fully anticipate its impacts and the emerging risks” and “That’s why we want to highlight both the steps that have been taken forward for safer AI, as well as some of the steps that should be taken.”
Saidot’s point aligns with the concerns surrounding the vetoed Senate Bill 1047, which sought to regulate AI technologies to prevent potential harm. As AI continues to develop rapidly, the failure to enact regulatory frameworks could leave many dangers inadequately managed.
What Does This Mean For Your Business?
The veto of Senate Bill 1047 by California State Governor Newsom highlights the need for achieving a delicate balance between promoting technological innovation and ensuring public safety. While the bill aimed to introduce necessary safeguards for advanced AI systems, its rejection shows the tension between regulation and the tech industry’s drive for unfettered progress. Newsom’s decision reflects the belief (particularly by the AI companies themselves) that overly rigid laws could stifle the rapid advancements in AI, which are viewed as essential for maintaining California’s competitive edge in the global tech landscape.
However, this move has also left a significant gap in AI governance. With AI systems becoming increasingly integrated into daily life (e.g. with the prospect of ‘ever-present’ AI as predicted by Microsoft), concerns about privacy, security, and potential misuse are mounting. The absence of comprehensive legislation leaves many of these issues unresolved, especially as the technology continues to evolve at an unprecedented pace. As argued by proponents of the bill, such as Senator Wiener, voluntary measures by AI companies may be insufficient and binding regulations are what’s really needed to protect society from potential harms, including cybersecurity risks and the creation of dangerous AI applications.
As AI continues to develop, the debate over how to effectively regulate it is far from over. The blocking of this bill may have slowed the momentum for immediate regulation, but it has also pushed the conversation forward. Looking ahead, policymakers, industry leaders, and experts will now need to collaborate on creating flexible yet effective frameworks that can both foster innovation and mitigate the risks associated with these powerful technologies.
For business users, the vetoing of Senate Bill 1047 and what would have been its wider effects means continued uncertainty around AI governance, leaving them reliant on voluntary safety measures from tech companies. While this may enable faster deployment of AI tools that enhance efficiency and innovation, for businesses it also raises risks. Without clear regulatory frameworks, businesses may face greater legal and ethical challenges, especially in areas like data security and AI accountability. For companies looking to integrate AI, the current absence of stringent safety measures could present both opportunities and risks as AI systems become more ingrained in business operations.
Tech Insight : New Ways To Search
Search technology has transformed significantly from text-based queries back in the nineties to now, where there’s a wide range of interactive methods like voice, visual, and AI-driven tools. Here, we look at how these advancements are reshaping the way we search, with a focus on the latest innovations and trends in the search landscape.
The Changing Landscape of Search
Search technology is currently undergoing a rapid transformation, driven by fierce competition between major tech companies like Google, Microsoft, and Amazon. While Google remains the dominant force (processing over 8.5 billion searches per day), other players are innovating and closing the gap by integrating advanced AI capabilities and new features. Microsoft’s Bing AI is increasingly incorporating AI-driven results to enhance search relevance, while Amazon focuses on evolving its product search and recommendation algorithms, positioning itself as a major contender in the e-commerce space.
The Way We Search Is Changing
The way we search is also evolving. Voice search is becoming more prominent, with predictions suggesting that it will account for 30 per cent of all browsing sessions by 2030. Simultaneously, visual search, powered by technologies like augmented reality (AR) and image recognition, is emerging as one of the fastest-growing areas in search technology. These innovations are fundamentally changing user behaviour, as people move from traditional text searches towards more interactive and immersive experiences.
Competition Driving The Change
The competition between these tech giants is intensifying, with each company striving to create the most seamless, intuitive, and user-friendly search tools. This has led to the development of AI-powered chatbots, AR search experiences, and personalised recommendations that are reshaping the way users interact with search engines.
Now, we’re going to take a brief look at the many types of searches currently available, each offering unique ways to access information and interact with the digital world.
Text Search
Text search remains the most widely used and traditional search method, where users input keywords or phrases into a search bar on platforms like Google. Whether on desktop, mobile, or the Google app, this type of search allows users to retrieve vast amounts of information based on specific queries. It’s the backbone of modern search engines and is complemented by additional tools that enhance precision, such as advanced search operators.
Voice Search
With the rise of smart devices, voice search has become increasingly popular. Users can activate searches using voice commands by simply saying “Hey Google” on Android devices or through other assistants like Amazon Alexa or Apple’s Siri. Voice search allows users to ask questions, perform searches, or control their devices completely hands-free. This is particularly useful when multitasking or when typing isn’t practical, and the technology has greatly improved around understanding natural language and context.
Visual Search with Google Lens
Visual search, led by Google Lens, allows users to search using their smartphone camera. By pointing their camera at an object, text, or scene, users can instantly receive information about it, find similar products, or even translate text in real-time. Google Lens has opened new possibilities, allowing people to search for objects they don’t know the name of but can see. For example, by scanning a plant or an animal, users can identify the species instantly. This tool reflects how search is becoming more intuitive and integrated into everyday experiences.
Google’s New Video Search
Google is further innovating with its new Video Search feature, which allows users to point their camera at an object or scene, ask a question about it, and receive search results in real-time. This feature enables deeper interaction with the physical world, allowing people to get information on what they are seeing, whether it’s a historical building, a piece of art, or even a consumer product. This development is part of a growing trend where the boundaries between the digital and physical worlds blur, making search more accessible and context-driven.
Image Search
Image search has evolved to allow users to perform reverse image searches, primarily through Google Images. Users can upload an image or drag and drop it into the search bar to find similar images, verify the source, or learn more about the content. This is particularly useful for identifying things like locations, people, or products based on an image alone. It’s a key tool for anyone needing to trace visual content across the web.
Multisearch (Combining Text and Image)
Multisearch is an innovative approach that allows users to combine text and image input into a single query. This is ideal for instances where an image alone doesn’t provide enough detail. For example, users can upload a photo of a product and then add specific descriptors such as colour, brand, or style to refine the search. This combination enhances accuracy, especially when searching for specific items or variations that aren’t immediately obvious from an image alone.
Video Search (YouTube and Google Video Tabs)
Search has become more multimedia-focused, and video search is a huge part of this shift. On Google, users can switch to the “Videos” tab to find relevant content from platforms like YouTube, Vimeo, or other video-based sources. YouTube itself offers an internal search function, supporting both text and voice searches, allowing users to locate tutorials, entertainment, or educational videos based on their interests. As more content shifts to video formats, this type of search is becoming an essential tool for users.
Maps Search
Google Maps supports location-based searches, allowing users to find businesses, services, and landmarks in a specific area. With text or voice input, users can search for restaurants, shops, or attractions, while accessing additional features like reviews, photos, and directions. This has become an essential tool for daily life, integrating geographic data with business information, helping people navigate their world with ease.
Hum to Search
If you’re thinking of a song, Google allows you to hum, whistle, or sing the melody, and it can identify the song for you. Note, we have largely focused on Google for this text, although there are other specific platforms that allow users to search for specific sounds to identify their origin, such as identifying a species of bird via its birdsong (e.g. BirdNET or ChirpOMatic). Other specialist platforms doubtless exist for other animals and/or sources of noise.
Shopping Search
Google Shopping is another popular tool, helping users compare products, prices, and store availability. This search method is increasingly tied to AR (Augmented Reality) tools, where users can visualise products in their space before purchasing. Shoppers can now search for items, filter results based on price, location, or store, and even see product reviews and specifications. The combination of search with AR enhances the shopping experience, making it more immersive and informed.
In-App Search on Mobile Devices
On Android devices, in-app search allows users to locate content within specific apps directly from the Google search app. This includes finding emails, documents, or social media posts without switching between apps. It’s an efficient way to manage information across multiple platforms, ensuring users can access relevant data without leaving the search interface.
AR Search for 3D Objects
Augmented Reality (AR) Search has become a notable development, particularly in fields like education and e-commerce. Using Google AR, users can view 3D models of search results, such as animals, historical artifacts, or even products. This type of search is highly interactive, allowing people to see life-like models of objects in their real environment, enhancing the depth of the search experience.
Discover (Content Recommendations)
Google Discover shifts the search paradigm by offering content without the need for a direct query. This feature curates articles, videos, and other content based on a user’s interests and search history, presenting it in a personalised feed. It’s a proactive search tool, constantly updating to present users with new and relevant content as their interests evolve.
AI-Powered Search Using Chatbots
AI chatbots, such as ChatGPT, Bard, and Bing Chat, have revolutionised search by offering conversational interfaces. Rather than simply retrieving links, these chatbots can generate detailed responses, summarise information, and offer personalised recommendations. For example, users can ask ChatGPT to find information on a specific topic and receive a coherent, natural-language answer, instead of browsing through multiple web pages. These AI tools are rapidly improving, offering new ways to search, especially for more complex, nuanced questions that traditional search engines might struggle with.
What Does This Mean For Your Business?
The ongoing evolution of search technology presents both opportunities and challenges for businesses aiming to stay visible in this increasingly diverse landscape. As the methods people use to search diversify, companies must adapt their strategies to ensure they can still be easily found across all platforms and search types. It’s no longer enough to rely solely on traditional SEO tactics focused on text-based searches. To maintain or enhance their visibility, businesses now need to consider how they are appearing in voice, visual, and AI-driven searches, as well as adapting to the rise of augmented reality and interactive search experiences.
Voice search, in particular, has significant implications for businesses. As more users turn to devices like smart speakers and mobile assistants to ask questions and perform searches, optimising for voice queries is becoming more important. Voice searches tend to be more conversational and question-based, which means businesses need to adapt their content strategies to capture these queries effectively. For example, having concise, easily digestible answers to common questions about their products or services can help businesses rank higher in voice search results.
Similarly, visual search tools like Google Lens and augmented reality searches are transforming how consumers discover products. Retailers and brands need to ensure that their product images are optimised for visual search. High-quality visuals, detailed metadata, and clear product descriptions can help ensure that when users point their cameras at a product, the brand’s offering appears in search results. Also, augmented reality features, such as those in Google Shopping, allow consumers to visualise products in their environment before purchasing. Businesses that invest in AR-ready content and experiences can now tap into a growing consumer base that values immersive, real-time interactions.
The growing importance of AI-powered chatbots in search also means businesses will need to rethink how they engage with potential customers. AI tools like ChatGPT and Bing Chat provide more in-depth, conversational responses, making it essential for businesses to have well-structured and informative content that these systems can draw from. This means producing detailed yet user-friendly content that provides value and can be referenced by AI systems to give consumers the answers they seek.
For businesses operating in local markets, optimising for Google Maps and local searches is critical. Consumers increasingly rely on location-based searches to find services, restaurants, shops, and more. Ensuring that business listings are accurate, up to date, and include reviews, photos, and essential details is key to capturing local search traffic. Furthermore, investing in local SEO strategies to appear in voice searches for location-based queries will become increasingly important as consumers use voice assistants to find nearby services.
Tech News : Ebay : Fees Scrapped For UK Private Sellers
Online marketplace eBay has announced that starting Tuesday 1 October 2024, private sellers will not pay transaction fees when they sell items on eBay.co.uk.
Like Germany
In its online announcement of the change, eBay highlighted how it recently launched a similar free-to-sell programme in Germany, with the result reportedly being that many new customers joined eBay to start selling (and buying). In fact, eBay says, “Hundreds of thousands of them started buying” and that “they ended up buying twice as much as buyers who don’t sell”.
Why?
There are several reasons why eBay has removed the fees for private sellers, the main reasons being:
– As a response to growing competition. For example, eBay is reacting to increased competition from newer platforms like Depop and Vinted. These platforms have captured significant market share by allowing users to sell pre-owned goods, particularly fashion items, without charging seller fees. To remain competitive, eBay is adopting a similar approach to reduce seller costs.
– Expansion of its previous initiatives. Back in April this year, for example, eBay removed fees for private sellers of pre-owned fashion items, which led to a notable increase in listings. Seeing success in that category may have contributed to eBay expanding the fee removal across almost all categories to attract more sellers and increase listings on the platform.
– To encourage both second-hand sales and sustainability. A survey conducted for eBay showed that there are millions of unused items (an estimated 294 million) across UK households, representing as much as an estimated £9 billion in potential resale value. By removing fees, eBay aims to encourage people to sell unused items, thereby not only helping eBay boost and retain customer numbers but also contributing to sustainability by keeping items out of landfills.
– Increased inventory and user engagement. It appears that the move is also designed to boost the volume and variety of items listed on eBay, thereby enhancing the buying experience. For example, more sellers and more diverse inventory may lead to more buyers engaging with the platform, driving a broader customer-to-customer (C2C) marketplace.
– As part of eBay’s long-term monetisation strategy. Although eBay is waiving UK private seller fees, it could potentially monetise the transactions through other means, such as advertising, enhanced listing services, or buyer-facing fees (similar to Vinted’s model). This approach lowers barriers for sellers while opening up new revenue streams.
Exception
The removal of sellers’ fees will, however, not apply to motors: Cars, Motorcycles & Vehicles listings.
Other Benefits
In the same announcement, alongside the removal of transaction fees for UK private sellers, eBay highlighted several other new benefits its introducing to improve the marketplace for both private and business sellers, while keeping the platform competitive. These are:
– Fraudulent returns protection for business sellers, i.e. enhanced support to handle fraudulent returns more effectively, including quicker resolutions and additional postage credits for false claims.
– Seller clinics. For example, business sellers can now access free one-on-one advice from a Marketplace Advisor for personalised business guidance.
– From October 16, eBay Balance for private sellers, whereby, private sellers’ earnings will go directly into an “eBay Balance” for easier management, with quarterly automatic transfers to bank accounts or manual withdrawals on request.
– A crackdown on false private sellers, i.e. eBay says it’s increasing efforts to ensure that business sellers using private accounts transition to business accounts, with tighter monitoring and reduced free listings for private accounts.
What Does This Mean For Your Business?
With these changes, eBay is positioning itself to stay competitive within what has become an increasingly crowded online marketplace, while also reinforcing its commitment to sustainability and user engagement. By eliminating transaction fees for private sellers in the UK, eBay is not only responding to rising competition from platforms like Depop and Vinted, but also actively encouraging the resale of unused items, a move that could significantly boost listings across various categories. This, in turn, could enhance the overall buying experience on eBay by offering greater inventory variety and more opportunities for buyer-seller interaction.
Also, it could be said that the fee removal aligns with eBay’s broader sustainability goals, encouraging the reuse of goods and helping reduce waste. The combination of free listings and new seller support initiatives (such as eBay Balance and enhanced protections for business sellers) appears to suggest that eBay is focusing on creating a more seller-friendly environment while exploring alternative revenue streams.
While the eBay platform still faces the challenge of differentiating itself from a growing number of increasingly powerful competitors, eBay will be hoping that these changes could provide the boost needed to attract new sellers, retain loyal users, and expand its role in the second-hand economy.