How Does Vinted Make Money?
Vinted is a mobile marketplace where people can buy and sell secondhand clothing. It's sort of like eBay, but with a few key differences. So how does Vinted make money? We'll take a look at how they became one of the most popular online selling platforms and clothing marketplaces.
What Is Vinted and What Is Its Business Model?
Vinted is a mobile marketplace that allows people to buy and sell secondhand clothing. This company and software for selling online was founded in Lithuania in 2008 by Milda Mitkute and Justas Janauskas.
The company currently covers fourteen European countries, the UK, USA, and Canada. With over 45 million users worldwide, it's one of the biggest global secondhand clothing marketplaces; people love to get paid on Vinted.
But, there's a bigger question here - how does Vinted make their money? Mainly through fixed and variable fees, advertisements, and sponsored content like Wardrobe Spotlight and bumping items.
They Make Money by Charging Fixed and Variable Fees
Their main income comes from charging buyers a fixed and variable fee for each successful transaction. The fixed fee covers payment processing; the variable fee is around 5%.
Surprisingly, sellers are usually those who have to pay fees on online marketplaces, not buyers. But selling on Vinted is free, although their buyer protection policy and fees could play a part in paying.
The Company Is Valued at More Than £4 Billion
In 2019, this incredibly successful online selling software became one of the biggest Lithuanian start-ups; their revenue was around £130 million and valued at approximately £1 billion.
Today, as their business model expands further, they've managed to increase their yearly income and are valued at £4,5 billion. In the video below, Thomas Plantenga shares their beginnings and how they became a billion-dollar company. It may be an interesting watch for someone looking to become a reseller.
They Also Earn Revenue From Advertising and Sponsored Content for Sellers
Vinted's idea of succeeding in e-commerce came from charging buyers for specific parts of their orders and developing a marketplace platform that relies on advertising. Since their original idea, they've introduced other options.
One is bumping listed items. Users can buy a "bumping" service to get their items to show up in other members' news feeds or search results, giving them a kind of priority. This feature works well for branded clothes that are still in good shape and can fetch a higher price.
Users can buy three to seven days of the bumping service, which happens once a day or until the item sells, at times that the users choose. When a user "bumps" an item, it shows up in news feeds and search results.
Visibility of the bumped item can change based on things like the type of clothing, size, and brands that other members follow on the platform.
Additionally, Vinted sells ad placements to third parties to sign up for their self-service platform, letting them create and manage ad campaigns on it. Since their user base consists of around 45 million people, advertisers can generate decent traffic.
How Does Vinted Make Money in the UK?
How does Vinted make money - UK edition? Since we're in the UK and you might be considering starting an online clothing store, the first thing on your mind might be - where should I advertise?
Well, here is a pretty good place to start. Vinted's UK business model has something special - the Wardrobe Spotlight. Next to Vinted's fee system and a fairly good return policy, there's a guarantee that people won't be scammed, and it doesn't let anyone scam as easily as they might like.
Does Vinted's Business Model Work Well in the UK?
The Wardrobe Spotlight idea is unique to Vinted's UK market, and while it's similar to bumping items, it works well in its own lane. Wardrobe Spotlight helps users get their items seen more on the market.
Users can have items from their closets shown in other members' news feeds for a full week. The rest of the seller's items are also easy to get once they get some exposure. People who are about the same size and like the same brands can get connected this way and get the most out of their shopping experience.
They charge £6.95 for the service, and users must have at least five items for sale during the seven days that Wardrobe Spotlight is active.
What Is Vinted's Buyer Protection Policy?
When you start an online store, you expect your online selling tools to bring revenue and views. While making money like that is easier said than done, you might just do it here. That is if you can get past their buyer protection.
Vinted's buyer protection policy is pretty strong. It includes:
- Purchase protection - this gives each buyer a refund if an item arrives broken, is very different from what was described, or doesn't show up at all. Refunds are given if a buyer contacts the company within two days of the item being marked as delivered,
- Fraud protection - this means no one can use a buyer's profile or financial info without their permission,
- Customer service - the company's customer service team is always available to help buyers with disputes and other problems.
Will Zipsale’s Crosslisting Software on Vinted Work for Sellers?
The answer is yes. Zipsale supports using Vinted. When you’re reselling vintage clothing online, you should have a good strategy for listing and marketing your items. The definition of crossposting includes making it easier to reach a wider audience and increase your chances of making a sale.
The Zipsale crossposting app makes it easy to post your items on multiple platforms and become a reseller with just a few clicks. If you’re looking for an easy way to boost your earnings from reselling vintage clothes, sign up today and give Zipsale a try.