Business model of apps like Offer Up, LetGo and Carousell
How does OfferUp work? These services have lots of things in common and work pretty similar. And one of these similarities is a business model which, as they claim, they dont have. These selling apps dont charge the commission for registration, profile creation, and not even for the number of ads. More than that, they dont take a commission for a deal. OfferUp developers intended to earn exclusively on advertising to keep the service free and available for everyone.
Yet, if you want to create an app like LetGo, Carousell or Offerup, we suggest you taking into consideration some of these monetization strategies.
Local marketplace app monetization strategies
Online transactionsIf customers can pay via your app, you can charge a fixed price or a percent of every deal. Its easy to do with some third-party services like Stripe, for instance.
In-app-purchases
What is meant here is the ability to buy some special offers, or sellers can pay to place their ads at the top.
Delivery
Your service can also be a mediator allowing sellers to expand the trading territory.
Internal ads
An opportunity to publish action offers, special offers and a system of internal recommendations.
