Centerprise investment set to rile Amazon and eBay

System builder and VAR throws weight behind new online marketplace launch OnBuy, which is aggressively looking to steal market share from incumbents

Centerprise has become a major backer for a new online marketplace scheme called OnBuy which is hoping to steal ground from incumbent giants Amazon and eBay.

The marketplace, which is run by OnCommerce, will launch in the summer and will sell everything from IT equipment, toys and games through to arts and crafts.

Cas Paton (pictured left, with Centerprise founder Rafi Razzak and chief executive Garry Stevens), managing director of OnCommerce, said he was delighted to have secured funding from a renowned player such as Centerprise.

“The value and experience, product reach and support services that Centerprise offers are going to be fundamental to the success of OnBuy," he said. "They’ve been trading for 30 years, working closely with some of the largest IT companies in the world.”

Although Paton is keeping the product lines close to his chest, he said that the site will sell anything business sellers want to sell, and unlike rival sites such as Amazon, items don’t have to be barcoded.

“Our potential audience is huge and we are working with a large number of sellers," he said. "Our objective is to entice new sellers, introduce ourselves to consumers and get on the radar of our competitors.

“Our competitors will see that this isn’t some Mickey Mouse guy trying to set up a business from home – the fact that we have financial backing from a firm like Centerprise means we are a serious contender.”

Paton also stressed that the fact OnBuy is a British-based company, paying UK tax, is sitting well with potential partners, adding that the firm has aggressive growth plans over the next three years to go from high six figures into high eight figures.

“OnBuy is committed to offering the lowest cost-per-sale, compared with rival marketplaces, allowing our sellers to sell at lower prices and therefore our customers to benefit,” Paton said.

“We are really looking forward to watching OnBuy compete to become one of the major online marketplaces.”

Stevens said: “We see OnBuy becoming part of the way that people buy online, setting new standards in reach and choice.

“The first thing that attracted us to work with Cas and the team on the project was the focus and enthusiasm they have for it. For us, we are always looking for great people to back and we are happy that we can form a long and mutually productive future alliance together.”