Twice as many eBay traders turning over £1m

The number of traders on eBay with a turnover of £1m has doubled over the last year, as the e-commerce site has revealed that small firms have 'come of age' online.

eBay said that 127 companies are likely to reach a turnover of at least £1m for 2010, which compares with 66 businesses the previous year. Furthermore, of those companies, seven only began trading on eBay this year.

eBay’s director for small and medium-sized enterprises, Jody Ford, said: “It is tremendous to see this surge in the number of thriving online SMEs and start-ups at a time when the rest of the economy has been struggling.”

Since the start of the recession, around 25,000 people have started a business on eBay. While many small firms have failed as a result of the economic downturn, a number of micro or family-run enterprises have profited from selling goods online, which suggests that small businesses are challenging the uncertain economic conditions.

Ford added: “The success of these million-pound businesses should encourage all entrepreneurs, from those with a long-standing business plan to graduates or school leavers with a great idea, as it shows that if you have a good business model and understand the demands of your customers you can be an overnight success.”

© Crimson Business Ltd. 2010