Retail Interview - with OnBuy.com founder and CEO Cas Paton

Onwards and upwards

Toys and games are always strong sellers on OnBuy.com across all ages and a wide range of interests. TnP talks to Cas Paton, founder and CEO of this fast-growing online marketplace

What’s your background?

Before I created OnBuy, I had been running website development companies since I was 21 (back in 2006!) and working as an ecommerce consultant for organisations such as NATO and the NHS.

It became evident that many businesses felt a sense of dissatisfaction with the services offered by online marketplaces, which was affecting their ability to maximise their ecommerce trading. As I dug deeper, I realised that the existing ecommerce marketplace model was inherently fl awed.

The central issue was that, typically, marketplaces also function as retailers. Sellers who use these platforms are regarded as ‘third parties’ and are expected to go toeto-toe against the same platforms they’re supposed to be able to trust to give them a fair deal. Despite this business model being the status quo in ecommerce, it didn’t make it right - and it didn’t give sellers the best opportunity to grow their businesses. Tell us a bit about OnBuy.

I put together a team and launched OnBuy in 2016, creating a true marketplace where sellers and buyers can connect securely, and where we focus on facilitating that relationship rather than selling our own products. OnBuy has more than 35 million listed products, sold by thousands of independent sellers. Not one of those products is listed or stocked by OnBuy itself, and never will be. We have more than eight million customers and counting, with a 4.7/5 rating on Trustpilot across more than 27,000 reviews. We’ve successfully grown over 600% year-on-year for the past three years. We’re expanding globally, so our growth is only set to continue!

The toys & games “

category is among the strongest in our entire catalogue

”

What are your key toys & games categories?

Because OnBuy works with independent sellers, as well as with toy brands and manufacturers directly, our range is substantial. Toys & games are always strong sellers on OnBuy across all ages and interests.

We’ve divided our toys & games category into 18 subcategories: action fi gures & playsets; baby & toddler toys; building & construction toys; children’s arts & crafts; classic toys; dolls, puppets & accessories; educational toys & games; electronic toys; fancy dress; games & magic sets; hobbies; jigsaws & puzzles; musical toy instruments; outdoor toys & games; pretend play; soft toys & teddies; sports toys; and toy vehicles.

How is the toys & games category performing generally?

The toys & games category is among the strongest in our entire catalogue. Our sellers are amazing at keeping up with trends and the latest releases - especially as many of them are physical toy shops using OnBuy to set up their ecommerce sales channel, or brands directly selling via OnBuy.

What products are popular at the moment?

Many of our most popular products

How is trading generally compared with this time last year?

Really strong. We opened 2021 off the back of a sensational Q4 2020, where the peak season saw OnBuy achieve incredible growth, fuelled by our major national TV advertising campaign with ITV.

Our success benefi ts the independent businesses who sell with us, so we’re glad to have been able to create such immense growth as it directly translates into increased market share for our sellers.

are family games or hobbyist board games, such as LEGO, Airfi x and jigsaw puzzles. UNO card games are always hugely popular, as are games such as Boggle and more adult games like What Do You Meme.

Toy retailers are facing challenging times: how can those who don’t have an ecommerce website use OnBuy?

OnBuy caters to businesses of all types and sizes, so our selection criteria is simple: if you’re a registered business with barcodes for your products, we’re happy to welcome you aboard! Sellers can simply visit our website, fi ll in the application form and we’ll get in touch within one working day to discuss onboarding.

As you rightly point out, the challenges we’ve all faced in the past year or so mean that it’s not just established ecommerce companies who are looking to diversify their sales channels by joining OnBuy. It’s also businesses stepping into the world of selling online for the fi rst time, often following remarkable physical store success.

It can sometimes feel as if the odds are stacked against businesses when they choose to sell online, particularly if they’re new to ecommerce. That’s partly why we personally onboard each new seller - it creates a personal relationship and helps paint a picture of the needs of their business. That in turn means we can tailor our advice.

We give sellers powerful tools and advantages, such as instant payment via PayPal when items are dispatched, a risk-free ad service called Boost, and a versatile Sale Price discounting tool. We also offer a Subscription Waiver Guarantee, which gives retailers time to get set up without being charged a recurring subscription fee, and a Transparent Fee Guarantee, where all our sellers pay the same fees. These benefi ts and tools are freely available to any OnBuy seller of any size, anywhere in the world.

Following the closure of non-essential retail for so much of last year and Q1 of this year, did you see an increase in the number of retailers turning to OnBuy?

Absolutely. The challenges facing the UK high street inspired quite a market sidestep from physical to digital retail. We consciously supported sellers of every kind when the pandemic fi rst began - we never prevented anything ‘nonessential’ from being sold on OnBuy, because we knew this would stifl e independent businesses.

We’re now seeing upwards If you look at how ingenious “

many physical retailers have been in embracing an online strategy, we believe that an omnichannel approach where physical and retail works in harmony is the future

”

of 600 new retailers joining us every month. If you look at how ingenious many physical retailers have been in embracing an online strategy, we believe that an omnichannel approach, where physical and digital retail works in harmony, is the future of how many organisations will be doing business in this decade and beyond.

What sets you apart from other online marketplaces?

One of our major differentiators is our business model: we’re a true marketplace, not a retailer. OnBuy doesn’t sell its own products and never will. We’ve created an ecommerce ecosystem. Fairness and transparency are at the core of our company, so we’ve levelled the playing fi eld for both retailers and customers.

We put the power in our customers’ hands: we show all the retailers selling a product on the product page - including each retailers’ price, delivery information and their reviews - so customers can easily choose who they’d like to buy from. We don’t infl uence the sale or try to push our own products because we don’t have any of our own stock to sell! Instead, we offer customers a huge amount of choice, with fantastic prices across millions of products and secure payments

processed via PayPal.

As for our retailers, each seller has an equal stake in their own success: we don’t favour one seller over another. That means huge multinationals, sole traders, and everyone in between trade on the same level playing fi eld.

What’s more, our partnership with PayPal means sellers can access their funds the moment they dispatch an order. We never hold or even handle their money. Cashfl ow is key for independent businesses, and our sellers don’t have to wait for pay-cycles.

Added to that, we’re growing worldwide as we speak, with the aim of being in a wide range of countries by year-end 2023 – promising all of our sellers global reach.

How does OnBuy deal with the infl ux of fake copies of toys that don’t meet UK safety standards?

To me, reputation is everything. OnBuy is centred around delivering a positive experience to every single customer, so the verifi cation of our retailers is of utmost importance.

My team and I take a zero-tolerance stance on any products found to be fake or unsafe, and once we are aware of a potential situation, we take immediate action. We also work closely with brands and government agencies to help identify any instances of counterfeit or unsafe products. I’m a father myself, and I would be devastated if my family were exposed to these kinds of goods.

My team has the expertise and resources to let them identify, delist, and take action against any sellers who try to use our platform to sell substandard goods - acting the moment any potentially counterfeit or unsafe items are reported.

Where are you taking the business next?

OnBuy is going global in a big way. 2020 saw us launch our

What’s the most rewarding aspect of your job?

I love a challenge and I’m “

lucky to have a highly skilled and agile team around me who are capable of driving OnBuy forwards, no matter what the road ahead looks like

”

While there’s something to be said for creating the world’s fastest-growing marketplace, I believe the fact that OnBuy demonstrates how ecommerce can be fairer on sellers and customers alike is a real game-changer. I’m lucky to be able to watch more and more sellers join our platform, knowing that it truly works for them. Instead of worrying about competition from us, sellers can use OnBuy to connect to customers in the way they deserve to - easily, effi ciently, and with the full support of our marketplace. And the most challenging? As OnBuy continues to evolve, new challenges continue to emerge - as is to be expected considering the immense growth of our platform and team, along with our increasing global reach. I’m not fazed by the challenges that crop up though: I love a challenge and I’m lucky to have a highly skilled and agile team around me who are capable of driving OnBuy forwards, no matter what the road ahead looks like.

internationalisation strategy, with the aim of bringing OnBuy to a range of countries by year-end 2023.

We’re doing this to connect more customers and more sellers than ever before. We have more than 525 million live product listings ready to roll out now, with a whole host of global retailers ready to add their product ranges.

Combined with our effi cient infrastructure and robust network of global partnerships, we’re ready to scale rapidly to offer customers around the world a completely location-tailored shopping experience. Our partnership with PayPal means they’ll have the ability to pay in their local currency, too.

We’re always looking to evolve and enhance our customer experience, so we’re launching the OnBuy app in 2021 for both iOS and Android, which will mirror the choice and convenience of the OnBuy website for customers all over the world.

This year has already seen great strides in OnBuy’s C-suite development. We’ve appointed ex-eBay director Mark Lister as CCO, ex-Richmond Group fi nance director James Watts as CFO, and Aron Cody, former chief customer offi cer of Seasalt, as CMO. We have more key hires progressing now, which we’ll be announcing in due course.

We’ll also be opening a second UK offi ce in Manchester during 2021, adding a 100-strong team of tech expertise to our growth journey.

Finally, what’s your favourite toy or game?

Some people are surprised when I say my favourite game is Monopoly - especially since I’m so against the idea of monopolies in real life. But it’s a classic, with so many versions.

As a kid, I had lots more hobbies and interests - not just playing at business empires!

You’d have been just as likely to fi nd me getting into mischief while ripping around the garden with my remote-control cars. Cars remain my passion even now, although I get to play with slightly bigger versions these days!