Using eBay to your Charity’s AdvantageNick Aldridge and Angela Cruz

Using eBay to your Charity’s Advantage

How eBay for Charity works

Case studies on how charities are using the online world

About eBay for Charity• Helps charities get the most from the eBay marketplace, by

– Enabling charities to trade effectively in the eBay marketplace.

– giving 17 million eBay.co.uk visitors a secure, trackable and efficient way of supporting good causes.

• The programme is managed by eBay.co.uk in partnership with PayPal Giving Fund UK, a registered charity

Online fundraising growing around 40% pa as share of voluntary income:- 2% in 2007/8- 3.7% in 2010/11www.missionfish.org.uk/research

Event fundraising: over £1bn raised via JustGiving since 2000.

But, UK is behind US nonprofits (8%).

Ways to get involved, and what you’ll need

A supporter base, particularly

online supporters

Marketing/fundraising

capacity

A recognisable and

compelling brand and logo

Access to goods, whether

donated or in-kind

Retail capacity: shop

management, pricing,

accounting

“Star items”, or the ability to

secure some

Creative ability: designing a

newsworthy concept

Web design to create a fun

“brand” for the auction

Receive donations from eBay sellers

• eBay sellers give 10-100%

of a sale to a charity of their

choice

• Listings appear with giving

ribbon , charity logo and

mission statement

• You can cancel listings that

clash with your charity

• Donors get a fee credit from

eBay

• PayPal Giving Fund delivers

funds and Gift Aid

Cause-related marketing

Analysis by

Columbia

Business School

(2010)

Items with a donation generate 34% more sales than non-charity equivalents.

Product then cause

Oh, and you’re supporting a good cause.(So, no guilt then)

Give at CheckoutPossible as online retail has:• Lower transaction costs• More “flexible” checkout tech.

eBay model is unique:• Requires no effort from the sellers• Enables Gift Aid collection (where we can get a declaration)• Enables buyers to choose their favourite charities

• £8m raised for UK charities (small + large)

• 2M donors making 6m separate donations

Predicting online conversion

10

Concrete, emo

tive imagery

NOT

Abstract, ratio

nal

explanations.

Ask supporters to make you their favourite charity

Special auctionsOffer unique, exciting or high value items to the public on eBay

• Eliminate the costs and hassle of hosting a live event.

• Reach a larger audience than any other online auction platform.

• Use the eBay brand to increase awareness of your auction.

• Need promotion and management to succeed.

Spot the opportunities: be reactive

• Harrods donated limited edition meerkat toys to children in hospices

• Charities asked to auction the “surplus” toys in eBay

Campaign raised £100,000 for 6 charities in 1 week.

You don’t need a “big brand” to be successful

Wild Trout Trust has raised £325k by auctioning fishing and conservation experiences.

• £5,100.00 A week for 2 rods fishing in Tierra del Fuego

• £3,500.00 5 nights for 2 rods, sea-trout and brown trout fishing

• £3,431.00 A week trout fishing for 2 at Futa Lodge Chile

• £3,000.00 4 days / 5 nights for 2 rods, bone fishing based at Abaco Lodge

Extensive support and promotion for special auctions

Running a shop on eBay

• Reach a bigger customer

base than a high-street shop

• Find the right buyers for

specialist items

• Listings appear with charity

ribbon , your logo and

mission statement

• Save money on overheads;

you don’t need retail

premises or round the clock

staffing

• No fees or deductions from

eBay or PayPal Giving Fund

Ecommerce and charities

• 10-15% of retail is online vs

1.3% of charity retail.

• 76% of charities online sales

are via eBay

But gradual move online:

• Charities’ eBay sales grew

34% last year

• Charity retail growth is less

than 3% each year

Children’s Society: an opportunity

• Children’s Society has a

partnership with a major

delivery company

• Expertise in trading

standards, have recruited

eBay expertise

• £24k in sales in Q4 2012

From high street to ecommerceMillRace IT

• Replaced several high street shops with

one eBay shop.

• Selling over £140k per month of

refurbished hardware (£1.5m last year).

• Promoted via eBay house ads (200m

impressions donated).

Sales growth (MoM)• Jan: 5.7%• Feb: 27.4%• Mar: 12.8%

Sue Ryder: plan ahead

Sue Ryder

• eBay shop launched last year and

already raising more than £24k pm

• Separate accounts for donated vs

bought-in goods.

• Significant planning and preparation to

sort out logistics before going live.

Integrating PayPal and eBay• PayPal donations up 69% year on year• Over 1 BN banner impressions donated by eBay• Links to auction, shop, donation flow from

homepage• Last full year: over £430k raised from eBay

users, including £120k in donations

Enabling/encouraging charity is good for eBay

eBay buyers who donate to charity:

• spend 40% more than buyers who don’t, on average

• are half as likely to lapse in the next year

Sellers who donate

• sell 35% more than sellers who don’t, on average

• are 37% as likely to lapse in the next year

23

1 Internal analysis of donor vs. non-donor behaviour, comparing against non-donating users with similar profile/behaviour.

0%

10%

20%

30%

40%

50%

60%

70%

Retention (%) Spend/sales (%)

Buyers

Sellers

Download our guide to getting started

www.paypalgivingfund.org.uk/research

What should I do first?

1. Register your charity with PayPal Giving Fund

www.paypalgivingfund.org.uk

And to start selling:

2. Register as an eBay seller

www.ebay.co.uk/register

(choose business registration)

3. Set up a PayPal account

www.paypal.co.uk/charity (1.4% instead of 3.4%)

How can I make it work?

• Make sure colleagues know they can:

• Sell items to a huge audience for free

• Run special auctions to engage supporters

• Tell your supporters to make you a favourite

• Explore with corporate partners as a fun activity

or business model

What does all this cost?

• Free to register at paypalgivingfund.org.uk

• 100% of all donations (and Gift Aid) passed on

• No charge for your sales on eBay

• PayPal offers discounted rate for charities

For more information, contact us at:

Conference House Ltd. 24 St. Clements Passage, Huntingdon, Cambs. PE29 3TP

020 8605 3191

info@paypalgivingfund.org.uk

www.paypalgivingfund.org.uk

Thank you for listening