Trade Me
New Zealand's leading online marketplace for auctions, classified listings, property, vehicles, jobs and related services.
Last updated August 21, 2026
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Overview
Trade Me is New Zealand's largest online auction and classifieds platform and one of the country's most widely used digital services. Founded by Sam Morgan in 1999, the company began as a small person-to-person auction website and developed into a broad marketplace covering general merchandise, cars, motorcycles, boats, residential property, rentals, flatmates, employment, pets, antiques and collectibles. Its central proposition is a locally adapted marketplace built around New Zealand users, domestic payments, local delivery and strong community recognition. Morgan conceived the service after struggling to find a second-hand heater in Wellington. He built the first version while working as a technology consultant and launched it in March 1999. The company initially concentrated on membership growth and operated without charging buyers or sellers for core activity. Early expansion was financed partly through investment from former Deloitte colleagues. As advertising revenue proved insufficient, Trade Me introduced paid listing features and then success fees in 2000. This shift helped establish a sustainable commercial model while preserving the network effects generated by a large local user base. Trade Me's marketplace resembles international auction services such as eBay, with auction bidding, automatic bidding and fixed-price Buy Now listings. It differentiated itself through local scale, New Zealand-specific categories, domestic trust mechanisms and a strong technology culture. International competitors, including eBay, struggled to displace it in New Zealand. The platform later added specialist verticals: Trade Me Motors launched in 2003, Trade Me Property in 2005 and Trade Me Jobs in 2006. These businesses broadened Trade Me from a general auction site into a multi-category marketplace and classified-advertising group. The company was acquired by Fairfax in 2006 for NZ$700 million, with additional consideration linked to performance targets. Trade Me continued to operate as a distinct service under Fairfax and later became publicly listed on the New Zealand and Australian markets in December 2011 under the ticker TME. Fairfax sold the business to private-equity firm Apax Partners in a transaction announced in 2018 and completed in May 2019 for NZ$2.56 billion. Following the acquisition, Trade Me ceased to be a separately listed public company. Trade Me's ecosystem has included related services such as FindSomeone, Holiday Houses and MotorWeb, while other projects, including the smaps mapping service, Old Friends and the SafeTrader escrow service, were later discontinued. Payment and trust functions have evolved over time. The company introduced Safe Trader in its early years, later developed instant payment tools under the Pay Now and Ping names, and has used authentication, seller controls, reporting tools and a dedicated Trust and Safety team to address fraud and marketplace abuse. The platform primarily serves New Zealand residents and has historically required sellers from Australia to maintain a New Zealand bank account. International selling is permitted only in limited cases subject to approval. Trade Me earns revenue from listing features, transaction or success fees, advertising and specialist classified services. Its competitive position rests on brand familiarity, a large domestic user base and the breadth of its category network. In 2025, the company acquired a 50 percent stake in Stuff Digital, linking Trade Me's property activity with Stuff's digital media and property operations. In 2026, it announced changes intended to improve competitiveness against Facebook Marketplace, including the removal of success fees for casual sellers and changes to payment and buyer-fee arrangements.
History
Trade Me was founded in Wellington in 1999 by Sam Morgan, then a young technology consultant at Deloitte. The original concept grew from the difficulty of locating a used heater through existing New Zealand classified services. Morgan built the initial website on a laptop over several weeks and launched it in March 1999. It attracted 155 members during its first week and reached approximately 3,500 members by August. Morgan raised early capital from former Deloitte colleagues and initially kept the service free to encourage participation. The business faced financial pressure because advertising income did not cover hosting and operating costs. Trade Me responded by charging for premium listing features and introducing success fees in September 2000. The change created a viable revenue base without undermining the platform's network effects. The company emphasized a technology-focused operating culture, often associated with its internal Trade Me Manifesto. Membership expanded to about 100,000 by 2001 and passed one million by April 2005. Trade Me expanded beyond general auctions through specialist verticals. Trade Me Motors launched in 2003, followed by Trade Me Property in 2005 and Trade Me Jobs in 2006. These services allowed the company to compete not only in person-to-person commerce but also in automotive, property and employment advertising. The platform's local focus helped it withstand eBay's attempt to enter New Zealand in 2001. Trade Me also developed payment, authentication and safety measures, including Safe Trader and later online payment tools. Fairfax acquired Trade Me on 6 March 2006 for NZ$700 million, with a further NZ$50 million potentially payable if performance targets were met. Trade Me retained operational independence and continued to develop its own category businesses. Fairfax later sought to sell its stake as part of a debt-reduction program. Trade Me became a separately listed company in December 2011 under the ticker TME, but its public-market period ended after Apax Partners agreed to acquire it in December 2018. The transaction, valued at NZ$2.56 billion, was completed in May 2019 and represented one of New Zealand's largest private-equity transactions. The company has operated related services including FindSomeone, Holiday Houses and MotorWeb. It also launched or acquired ancillary digital projects that were subsequently closed or discontinued, including smaps, Old Friends and SafeTrader. The marketplace has faced recurring fraud, payment and user-safety risks typical of large online platforms. In response, Trade Me created a Trust and Safety team, introduced community reporting tools and restricted or controlled participation by underage, unauthenticated and certain overseas users. Trade Me remains a dominant New Zealand digital marketplace, with general merchandise at its core and specialist categories supporting recurring classified and advertising revenue. In 2025 it expanded its media and property strategy through a 50 percent investment in Stuff Digital. In 2026 it announced a major pricing and payment redesign aimed partly at responding to Facebook Marketplace and other low-fee alternatives. The announced changes included eliminating success fees for casual sellers, adding cash and installment-payment options, phasing out online bank transfers and applying progressive buyer fees to higher-priced items.
- 2025
Stuff Digital investment
[1]Trade Me acquired half of Stuff Digital and planned closer integration of property listings and content.
- 2019
Apax acquisition completed
[1]Apax Partners completed its acquisition, returning Trade Me to private ownership.
- 2011
Public listing
[1]Trade Me listed as a separate public company under ticker TME.
- 2006
Fairfax acquisition
[1]Fairfax acquired Trade Me for NZ$700 million, plus possible performance-linked consideration.
- 2005
Trade Me Property launches
[1]Trade Me added a dedicated property marketplace.
- 2003
Trade Me Motors launches
[1]The company entered automotive classifieds with listings for cars and other vehicles.
- 2000
Success fees introduced
[1]Transaction-based success fees replaced the earlier dependence on free listings and weak banner-advertising revenue.
- 1999
Trade Me launches
[1]Sam Morgan launched Trade Me in March as a New Zealand online auction service.
Products and positioning
A trusted, locally scaled New Zealand marketplace combining consumer auctions, e-commerce and specialist classified verticals.
Online auctions and e-commerce · 1999
Trade Me Marketplace
The core marketplace supports auction and fixed-price listings for new and used goods. Buyers can bid manually or through automatic bidding, while sellers can use Buy Now pricing and paid listing enhancements. The service covers broad consumer categories, including electronics, clothing, household goods, collectibles and miscellaneous merchandise.
Automotive classifieds · 2003
Trade Me Motors
Trade Me Motors provides listings for cars, motorcycles, boats and related automotive inventory. It extends the marketplace model into higher-value transactions and supports both private sellers and motor dealers.
Property classifieds · 2005
Trade Me Property
Trade Me Property is the company's residential property marketplace, covering homes for sale, rentals and related housing searches. It is one of Trade Me's major specialist verticals and has been central to its expansion beyond consumer auctions.
Employment classifieds · 2006
Trade Me Jobs
Trade Me Jobs connects employers and job seekers through employment advertisements. The service forms part of the company's broader classified-advertising portfolio.
Marketplace payments
Ping
Ping is Trade Me's online payment service, formerly associated with the Pay Now service. It allows eligible buyers and sellers to settle marketplace transactions through Trade Me's payment infrastructure.
Online dating
FindSomeone
FindSomeone is a related matchmaking and dating website operated within the wider Trade Me ecosystem.
Holiday accommodation
Holiday Houses
Holiday Houses provides listings and booking-related services for holiday homes and other short-term accommodation in New Zealand.
Controversies
2008
Lixtor dispute and alleged bullying tactics
Lixtor accused Trade Me of using bullying tactics in a dispute involving its terms and conditions and third-party activity. Trade Me rejected the characterization, while the matter attracted media and developer-community attention.
2006
Dispute over third-party scraping software
Trade Me threatened or challenged developers whose software accessed the website through screen scraping, including tools offering enhanced searches and automated bidding. The company subsequently clarified terms prohibiting automated access and later released an official API.
Marketing campaigns
- 2005Comfort hug auction
New Zealand
A listing offering a personal comfort hug attracted media attention and became an example of the unusual community-driven auctions that helped define Trade Me's early culture.
Outcome. High public and media interest
- 1999Trade Me eBay listing stunt
New Zealand
Morgan humorously listed Trade Me for sale on eBay with a NZ$1 million Buy Now price. Although eBay removed the listing, the stunt generated attention for the new service.
Outcome. Publicity and increased awareness
Brand decisions
2026
Redesign seller and buyer feesPrice changeBackground
Trade Me announced the changes while seeking to compete more directly with Facebook Marketplace and other low-fee channels.
Action taken
The company planned to remove success fees for casual sellers, phase out online bank transfers, add cash and installment-payment options, and apply progressive buyer service fees to items above NZ$20.
Aftermath
The long-term effect on seller activity, buyer conversion and marketplace revenue was not yet established in the reference material.
2019
Complete Apax Partners acquisitionM&ABackground
Fairfax sought to sell its Trade Me stake while addressing wider balance-sheet pressures.
Action taken
Apax Partners completed a NZ$2.56 billion takeover of Trade Me.
Aftermath
Trade Me became privately owned and its former public ticker ceased to represent an actively listed company.
Acquisition value. NZ$2.56 billion (2019)
2006
Accept Fairfax acquisitionM&ABackground
Trade Me had become a major national technology and marketplace business requiring substantial strategic and financial support.
Action taken
Fairfax acquired the company for NZ$700 million, with additional consideration tied to earnings targets.
Aftermath
Trade Me continued as a distinct Fairfax business and retained its core marketplace identity.
Acquisition value. NZ$700 million (2006)
2005
Restrict most membership to New Zealand and AustraliaStrategyBackground
Fraud prevention and payment reliability became more important as the marketplace grew.
Action taken
Trade Me limited ordinary membership and required Australian sellers to maintain a New Zealand bank account.
Aftermath
The policy excluded many international users, although approved overseas sellers were later permitted in limited circumstances.
2000
Introduce success feesStrategyBackground
Free participation and declining banner-advertising revenue left the young company without a sustainable income base.
Action taken
Trade Me introduced fees on successful auction transactions after first charging for selected listing enhancements.
Aftermath
The change became a turning point that helped the company reach profitability while continuing to grow its user network.
Recent events
Trade Me opens Kindness Store to support charities[3]
Trade Me opened its Kindness Store, a curated page where customers can purchase items needed by charities, working with Women’s Refuge, Red Cross, City Mission, Age Concern, Variety – the Children’s Charity and The Salvation Army.
Trade Me announces sale of LifeDirect[4]
Trade Me announced that it had sold its LifeDirect business to Mark Solomon. Transfer of ownership was planned for April 1; the sale price was confidential.
Sources4 sources
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