OnBuy, a prominent UK-based online marketplace, is gearing up for significant international growth, starting with its expansion into continental Europe by the end of this year. Known as “The Cashback Marketplace,” OnBuy is set to extend its presence to 14 European countries before making its way to the United States in 2025. This marks a major milestone for the marketplace, which has quickly become a key player in the UK since its launch in 2016.
A Rapid Rise in the UK
Since its inception, OnBuy has seen impressive growth, earning its spot on the FT 1000 list of Europe’s fastest-growing companies for multiple years. Between 2019 and 2022, the company’s revenue soared by over 3,000%, according to the Financial Times. OnBuy’s rapid expansion has been fueled by strong support from domestic and international investors, allowing the marketplace to secure substantial funding to fuel its ambitious plans.
Initially focused on the UK market, OnBuy has steadily built its reputation as a “pure marketplace,” meaning it doesn’t sell its own products or hold stock. Instead, it facilitates transactions between third-party retailers and consumers. This independent approach has been a key factor in OnBuy’s success, offering a level playing field for its partners and gaining the trust of buyers and sellers alike.
Expanding into Europe
In 2022, OnBuy took its first steps toward international growth by launching a seller drive to expand product offerings. However, the focus remained primarily on the UK market, which faced its own set of challenges. That focus is now shifting as the company prepares to target consumers across 14 European countries. This expansion is a significant move for OnBuy as it taps into the thriving European cross-border market, where marketplaces account for 69% of all cross-border sales.
The European rollout is expected to further boost OnBuy’s growth, with the company projecting a 10x increase in business over the next few years. This expansion into new territories will not only increase OnBuy’s footprint but also provide European consumers with more opportunities to access products through the platform’s popular cashback scheme, which has been a key draw for shoppers in the UK.
Plans for the United States
In addition to its European plans, OnBuy has its sights set on the United States, with a launch scheduled for 2025. This move is expected to significantly expand the marketplace’s global reach, as the U.S. represents one of the largest e-commerce markets in the world. By entering this space, OnBuy will be competing with established giants like Amazon and eBay, but its unique cashback offerings and independent marketplace model could provide a competitive edge.
Technical Advancements for Growth
OnBuy’s expansion is also backed by a recent partnership with Google Cloud, aimed at enhancing the platform’s technical capabilities. The collaboration will help ensure that both buyers and sellers enjoy a smooth experience as the company scales its operations globally. CEO and co-founder Cas Paton has emphasized that the marketplace’s success lies in its independent approach, which allows retailers to thrive without competition from OnBuy itself. This partnership with Google Cloud will further solidify the marketplace’s position as it enters new international markets.
OnBuy’s upcoming expansion into Europe and its planned launch in the U.S. represent a bold step forward for the UK-based marketplace. As it taps into new markets, OnBuy is poised for substantial growth, capitalizing on the popularity of marketplaces in the cross-border e-commerce space. With its independent business model and strong technical backing, OnBuy is well-positioned to compete on a global scale while continuing to offer value to both retailers and consumers through its cashback scheme.