Vinted is a Lithuanian-based online marketplace where people can buy, sell, and swap second-hand clothes and accessories. The platform has become incredibly popular in recent years, with over 45 million members across 13 countries. While Vinted provides an excellent service for its users, it is a for-profit company that needs to generate revenue to continue operating.
In this blog post, we will explore how Vinted makes money and how it has managed to become such a successful platform.
How Vinted Makes Money
Here are the various ways that Vinted makes money today
Vinted makes money primarily through transaction fees. When a seller makes a sale, Vinted takes a commission from the sale price. The commission fee is typically around 5% of the sale price, but it can vary depending on the category of the item being sold. For example, Vinted charges a higher commission fee for luxury goods such as designer handbags and shoes. Additionally, Vinted charges a small fee for any payments made through their platform.
Another way that Vinted generates revenue is through shipping fees. Sellers can choose to offer free shipping, but if they don’t, the buyer pays for shipping. Vinted partners with shipping providers to offer discounted shipping rates for its users. When a buyer pays for shipping, Vinted takes a small percentage of the shipping cost.
In addition to transaction and shipping fees, Vinted also offers a premium membership called Vinted Plus. For a monthly fee, users can access additional features such as the ability to feature their items at the top of search results, unlimited relisting of items, and the ability to sell items in multiple categories. Vinted Plus also includes discounts on shipping and other perks. While not a significant revenue generator, Vinted Plus adds an additional revenue stream for the company.
Finally, Vinted also generates revenue through advertising. Brands can pay to advertise their products on the platform, and Vinted also promotes its own initiatives and features through advertising. However, advertising is not a primary revenue source for Vinted, as the company focuses primarily on its users’ experience.
Data and Insights
Vinted also generates revenue by selling data and insights to brands and retailers. As a popular online marketplace, Vinted has access to valuable information about consumer behavior and purchasing patterns. Brands can use this information to inform their marketing strategies and product development.
While not a significant revenue generator, Vinted also allows users to donate a portion of their earnings to charity. Vinted partners with various charities, and users can choose to donate a percentage of their sales to a selected organization. Vinted does not take a commission fee from these donations.
Vinted also offers a feature called “Bundles,” which allows sellers to group multiple items together and offer them at a discounted price. This encourages users to purchase multiple items at once, increasing the average order value and generating more revenue for Vinted.
Investments and Funding
Vinted has received significant funding from investors, including Accel, Insight Partners, and Lightspeed Venture Partners. This funding allows Vinted to continue growing and expanding its services. In 2021, Vinted went public, raising € 490 million in its initial public offering (IPO).
In conclusion, Vinted has a variety of revenue streams that allow it to generate significant revenue while providing value to its users. As Vinted continues to grow and expand into new markets, it will likely continue to develop new revenue streams and partnerships that align with its mission to make second-hand fashion accessible and affordable for everyone
In conclusion, Vinted generates revenue through transaction fees, shipping fees, premium membership, and advertising. The company’s success is due to its ability to offer a unique and convenient service for its users. By providing an easy-to-use platform for buying and selling second-hand items, Vinted has created a loyal user base and continues to grow as more people become aware of the platform. Vinted’s revenue streams are designed to ensure the platform remains profitable while also providing value to its users.