OLX Business Model | How Does That Work And Make Profit?

OLX is a C2C marketplace platform (Consumer-to-Consumer) online global market allowing people to sell and buy products online with any intermediary. This platform has started in 2006 and now present in more than 40+ countries. In 2014, OLX having eleven billion page views and 200 million-plus active users per month, to know more information and knowledge of the business model and how OLX has grown and become top of C2C market online platforms.

As you are known, Olx is a buy and sell online classified website. People who interested to sell their products can make an advertisement here and buyers looking for products from the list to find the items they are looking for.

Are you curious about how to build a website like Olx, Yes, so we’ll get right to it.

Business Model Of OLX

As you already know, buy and sell classified mobile app like OLX model. But their sources of revenue are completely different from other online classified models. But if you want to find out more information about their business model and how it makes money and how it works.

Right here? To understand his marketplace business model, you first need to understand how it works.

Olx nothing but stands for Online Exchange. It's an online C2C marketplace platform for people to buy and sell products. When a buyer wants to sell, they will choose the classified site, and also if they want to buy something, they will look through the listing and what they want to buy. Sellers must give the product image what they want to sell with the product description and the headline with the price.

Shoppers have multiple options; they can get through another list and contact each other with rate negotiation can be done. That's the difference between Olx and other online markets. This platform is the communication point between the buyer and seller.

It acts as an enable to connect buyer and seller. The conversation, trading part, the transaction is only between buyers and sellers. Olx has nothing can do with this.

If you wish to better understand the business model, here we will make it simpler and easier to understand. The economics of this platform depends on scale. The more traffic you have, the more revenue you have. So, to get more clicks, the traffic and ads from that platform spend a lot of money.

How Olx does make profit

When compared to other classified portals, apps similar to olx has revenue streams has a good profit. It significantly differs from similar market platforms. It merely acts as a communication between seller and buyer rather than affiliate seller products. It is therefore time to look closely at sources of revenue.

The main revenue streams for this platform come through Google Ad monetizing. Other revenue streams include Google's personalized ad search, ads, sponsored ads, and sponsored links.

Google Ads & Google custom search engine

Olx works with partners that work with other ad partners or Google. They are either a mediator or a website provider. As you already know, this site simply functions as a classified portal for customers to buy and sell things. Therefore, it is high traffic that generates revenue. It makes money as a function of cost per print, cost per view, cost per click.

Thus, Olx monetizes the video ad clicks on the home page or product of an individual page until the transaction is done. Additionally, there is a search bar where shoppers can search for the products they are looking for. The results of any search they do are really optimized by the Google Search Engine monetizing AdSense.

Future listings

This platform is a classified ads portal. People keep making bidding lists. As time goes by the former list will be buried under new lists. Let's talk about that with an example if you added a listing to sell a motorbike. Even after a certain amount of time, you didn't get a call from the buyers. What would you say? The reason behind this is that your list will be buried beneath other recent lists.

So, the buyer would miss your ad because it would have been on the pages later. If the seller wants their ad to appear on the front page or top of Olx, they can pay for it. Simply put, sellers can pay Olx if they plan to present their ads at the top of that website platform.

Thus, the sellers can constantly remain above the mind of the buyer and Olx also makes good money. Bonus announcements are also a major source of revenue for this platform.

Banners / Sponsored ads

Another source of revenue for Olx is Banner and sponsored ads. This platform is very popular and has high traffic passing through. These ads are like ads Ad-sense and entirely controlled by Olx himself. Therefore, all the revenues generated will belong to this platform itself.

Wrapping up

Olx has been on the market for an extended period of time. It has made its mark on the market and has progressively expanded its user base. Although that’s a secret gate. Most people are interested in marketplace buy and sell app. From sponsored ads to Google ads, it makes revenue from multiple sources. They focus on developing countries or less developed countries because they have a lot of opportunities out there.