eBay has officially announced the expansion of its Circular Fashion Fund, extending the initiative to new international markets and reinforcing its long-term commitment to sustainable fashion. Originally launched in 2022, the fund supports startups and entrepreneurs developing solutions that promote circularity, extend garment lifespans, and reduce textile waste across the global fashion industry.

This latest expansion positions eBay as one of the most active marketplace players investing directly in circular fashion innovation at an international level.

What Is the Circular Fashion Fund

The Circular Fashion Fund is an investment and support program created by eBay to help early-stage companies scale ideas that address fashion’s environmental challenges. Unlike initiatives focused solely on resale, the fund targets a broad range of circular solutions across the fashion value chain.

These include textile recycling technologies, repair and refurbishment services, reuse and redistribution models, and circular design approaches that minimize waste from the outset.

By combining financial backing with mentorship and strategic guidance, the program aims to transform promising concepts into scalable, real-world solutions.

Expansion to New International Markets

For its 2026 edition, the Circular Fashion Fund has expanded significantly beyond its original geographic scope. In addition to the United States, the United Kingdom, Germany, and Australia, the program is now open to applicants based in:

• All member states of the European Union
  
• Switzerland
  
• Canada
  

This marks the first time the fund is accessible to many European markets outside its initial core countries, enabling eBay to tap into a wider network of sustainability-driven startups and innovation hubs.

Funding Structure and Financial Support

The expanded Circular Fashion Fund will select eight companies or startups to participate in the 2026 program. Each selected business will receive:

• Fifty thousand dollars in direct funding
  
• Access to expert mentorship and industry advisors
  
• Strategic support from eBay teams
  
• Visibility within the global sustainable fashion ecosystem
  

One of the selected companies will also be named the Global Winner. This standout participant will receive an additional $300,000 in investment from eBay Ventures, bringing the total potential funding to $400,000.

Who Can Apply to the Circular Fashion Fund

The program is aimed at early-stage founders and businesses developing solutions that improve circularity in fashion. Priority areas include:

• Textile recycling and material recovery technologies
  
• Clothing repair, refurbishment, and care services
  
• Innovative reuse and redistribution models
  
• Circular product design and waste reduction strategies
  

Applications for the 2026 fund opened in mid-January and will remain open until early March, with finalists selected later in the year by a panel of sustainability experts, eBay leadership, and previous fund participants.

Impact of the Fund Since Its Launch

Since its creation in 2022, the Circular Fashion Fund has supported more than twenty-five startups working across different aspects of circular fashion. Funded companies have contributed innovations in recycling processes, resale infrastructure, digital tools for extending garment life, and new business models that challenge traditional linear fashion systems.

By backing a diverse range of solutions, eBay has positioned the fund as a catalyst for systemic change rather than a single-issue sustainability initiative.

Why the Expansion Matters for the Fashion Industry

The fashion industry continues to face mounting pressure to address overproduction, waste, and environmental impact. Circular models are increasingly seen as essential to the sector’s future, but many promising solutions struggle to scale without early financial and strategic support.

By expanding its Circular Fashion Fund to new regions, eBay is signaling that circular fashion is a global priority and a long-term business opportunity. The move also reflects a shift toward supporting less visible but critical infrastructure, such as recycling and repair, alongside resale.

eBay’s Role in Advancing Circular Fashion

As one of the world’s largest online marketplaces for pre-owned goods, eBay plays a central role in extending product lifecycles. The expansion of the Circular Fashion Fund strengthens this position by enabling the company to support innovation beyond its own platform and into the broader fashion ecosystem.

Through targeted investment, mentorship, and international reach, eBay is helping to shape a future where fashion operates within a more sustainable, circular economic model.

The expansion of eBay’s Circular Fashion Fund represents a strategic step toward the global transition to circular fashion. By opening the program to new markets, expanding its international scope, and continuing to invest in diverse sustainability solutions, eBay is reinforcing its role as a leader in circular-economy innovation.

For startups focused on reducing fashion’s environmental impact, the Circular Fashion Fund offers not only financial backing but also access to industry expertise and global visibility at a critical stage of growth.

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eBay has slashed the fees for fashion items in the UK. Specifically, the company has drastically reduced the fees that users have to pay to sell on its website, with the fashion category being the most benefited. In some cases, fashion items had been completely removed from fees, meaning that sellers won’t have to pay for selling some fashion items on the eBay UK site. 

Specifically, it has been applied to all items except sneakers, handbags, watches, and jewelry, which are still subject to fees, although "reduced".

These changes affect not only new products for sale but also those already for sale on the marketplace. As eBay explains, "now UK-based private sellers can sell clothing for free and will not pay end-value fees or regulatory operating fees when selling these items."

Thus, from now on, selling any of these items on the marketplace will incur a fee of 8% of the price of the item plus the corresponding 30 pence. On the other hand, items priced at more than 100 pounds can be sold free of charge.

eBay bet on AI tools 

eBay is also betting on generative artificial intelligence (AI). Recently, the German marketplace launched a new AI tool that allows sellers to generate product listings from images. Dubbed 'magic listing,' the tool can automatically write a title and description based on an image, as well as information including product release date, category, subcategory, list price, and shipping cost.

This tool builds on the company's efforts to implement AI into the selling process. In fact, eBay has also improved its image background removal tool, which will allow sellers to share better product images.

In Q4 2023, eBay posted results that underscore its efforts to drive organic growth and stabilize its buyer base. The company's earnings report showed a 3% increase in revenue to $2.6 billion. In parallel, eBay's advertising business also posted strong growth, with total advertising revenue for the year up 25%.

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eBay launched a generative AI tool to allow sellers to generate product listings from images. Specifically, as eBay explains in a statement, under the name 'magic listing,' the tool can automatically write a title and description based on an image, as well as information including product release date, category, subcategory, list price, and shipping cost.

This tool builds on the company's efforts to implement AI into the selling process. In fact, eBay has also improved its image background removal tool, which will allow sellers to share better product images.

"We want more detailed, accurate, and thorough listings so buyers can access more information as they shop. But we also want those same listings to be faster and easier for sellers to create. Until recently, we would have had to choose one of these objectives. Now, however, we don't need to. Artificial intelligence can accomplish both goals at the same time," the company notes, while reiterating that "these AI description tools are simply a first step on our path to magical, seamless listings." says eBay

"We are thrilled to unveil the next version of this magical listing tool, which takes the old adage 'a picture is worth a thousand words' and makes it literal," says eBay in the official statement regarding this launch.

eBay believes AI is the future 

The company has not disclosed how long it has been developing the tool; however, it claims that "the previous version allowed sellers to add a title for a listing and categorize the item, and subsequently had the option to use AI to complete the product description." With that first version, eBay claims that 30% of U.S. sellers who used the app on iOS or Android tried the tool at least once, and more than 95% opted to use the AI-generated descriptions.

Currently, the new version of the 'magic listing' tool is available to sellers in beta on iOS, but the marketplace plans to release it to the public in the coming months. Going forward, eBay plans to integrate more artificial intelligence into its operations.

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eBay Germany has announced that will offer a loan service in alliance with online loan provider Iwoca. This credit solution will be eBay Flexi-Kapital by Iwoca and sellers on the marketplace will get access to funds within 24 hours after their request.

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Merchants on the online marketplace eBay can apply for working capital loans starting at 2.500 € and up to a top of 1 million euros. 

According to eBay, most of these credit approvals will be automated in real-time, which means that sellers will receive the funds within 24 hours of their request if they are approved. The service comes without interest, instead, sellers pay a one-time fixed fee.

Flexible repayments

eBay loan will offer a flexible repayment system linked to sales. Merchants who generate fewer sales will benefit by repaying less during that month. At the same time, sellers can also increase their credit if they encounter an unexpectedly higher demand. eBay's idea is to offer a credit line that can grow or diminish according to the seller's needs, so they can upscale quickly.

“With eBay Flexi-Kapital, we are now offering our dealers easy access to financing. The entire process is quick and uncomplicated: from the convenient, fully digital application to the timely decision and payment to the flexible, sales-based repayment.

With the new loan offer, we help our commercial sellers where they operate their businesses. In this way, especially in times of a more dynamic market environment, we are creating the necessary flexibility to counter delivery problems or rising energy prices.” said Oliver Klinck, Managing Director of eBay Germany.

Loans are on the rise

According to research conducted by Iwoca, the need for financing is above average among retail companies when compared to other sectors in Germany. 

At least 31% said they needed fast and easy access to loans in order to conduct their business more productively in the last year. Across other sectors, only 2 out of 10 respondents stated this sentiment.

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eBay and the 100-year old Coles Supermarket chain in Australia extend their partnership to launch the first full-blown online grocery business, reports Tamebay. The marketplace platform hopes to attract more online shoppers from Melbourne, Brisbane and Sydney to purchase on eBay.

eBay users from Australia can now shop (non-)perishable everyday products such as fresh food, personal care or household items. Free delivery is provided for shoppers who spend more than $49 and are subscribed to the ‘eBay Plus’ membership programme. They also receive double the amount of flybuys points on every order.

Next to eBay’s range of unique and new items from all other categories, the partnership provides access to Coles’ products. Coles’ is now following 40,000 other Australian retailers that use eBay, such as Target, The Good Guys and Myer.

Online grocery shopping

Only 3% of Australian shoppers currently shop for their groceries online. Coles and eBay are therefore breaking ground in the business for online groceries in Australia. They might be just in time before Amazon starts gaining domination in this market. Coles will provide an unattended delivery option, to enable their customers to receive orders while they are away from home. Other delivery options are released throughout the upcoming year. Alister Jorden, Chief Executive of Cole’s says: “We always look for ways to make life easier for our customers. “By partnering with eBay, we provide our customers with another convenient way to access our products and have them delivered straight to their door.”

As Coles launched their online shop two weeks ago, their feedback reveals that shoppers do not accept broken promises. Negative feedback can be received for every single product that is ordered. The feedback is therefore not the same as for other sellers and could be seen as unfair, as one buyer could leave 18 negative reactions for a single transaction.

It is no surprise that eBay chooses to launch the online grocery market in Australia. Amazon landed in Australia about a year ago, and in order to compete, it needs to step up its game instead of being a general marketplace.

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Using this service, it seems eBay is reaching out to its sellers to be able to better compete with Amazon's service. As with Amazons FbA, sellers need to consider carefully whether they prefer to place their stock with eBay’s fulfillment partner and benefit from a shipping expertise in a similar manner to Amazon FBA, or prefer to control their own stock, availing themselves of eBay Shipping.

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Germany counts 60 online marketplaces,there are 30 in France, Italy has 24 and the Netherlands and Spain have 18 each.

The 335 online marketplaces are operated by 74 different companies and offer either a full range of different goods or specialize in one category, such as fashion, wine or weapons.

The mechanisms used by the operators are highly variable. This is where most marketplaces differ significantly from their competitors. There are open and closed marketplaces. In the open version, traders can register themselves at the marketplace while with the closed type the operator decides who may or may not be included. Online marketplaces also differ significantly from one another in the type of transaction (immediate sale, auction, listing/classified ad). This has a particular bearing on whether the transaction – the change of ownership – is carried out directly on the marketplace or only on delivery of the goods.

The type of operation is of particular importance. Whether the marketplace is operated by an actual trader (Amazon, Otto, Pixmania, Zalando) or by an operator acting as an intermediary (Allyouneed, eBay, Rakuten), online marketplaces can provide the right offer for every customer. A service which is made use of more and more.

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