How does Offerup make money?

• Seller fees

  When a user sells an item that must be shipped, OfferUp collects a minimum fee of $1.99 or 12.9% of the item's sale price. OfferUp has a partnership with the United States Postal Service (USPS), but it also includes a shipping fee on items; this depends on which state the item is being shipped to.

• Promoted listings

  OfferUp has a feature that sellers must pay to use in which the app promotes the seller's listing using the Promote and Promote Plus features. This enables the seller to list their item within the top 50 listings in their area.

  OfferUp also has a feature called "Bump," in which a seller's item can go straight to the top of a listing. Long-term promotion gained with Promote Plus costs a seller $19.99 per month.

• Verified Dealer Program

  This is a feature that focuses on the sales of cars on the platform. It enables car dealerships to sell automobiles on the platform in an enhanced manner, using AI-integrated top lead indicators, automatic DMS importation, and a click-to-call feature in the form of a button.

  The pricing for the Verified Dealer Program varies and depends on the car dealership's side and the number of features the car dealership wants to use.

In-app purchases

Like many other apps, OfferUp allows users to make in-app purchases. This is another way that OfferUp generates revenue. In-app purchases can range from buying additional promotional features to paying for premium services that enhance the user experience and visibility on the platform.

Advertising

Given its large user base, OfferUp sells advertising space within the app. This provides businesses with a platform to reach a wide audience, and in turn, creates another income stream for OfferUp. The cost of these advertisements varies depending on factors such as the ad's size and length of display time. Ads can be removed with a premium account.

Partnerships

Beyond its partnership with USPS for shipping purposes, OfferUp also enters strategic partnerships with other companies. These partnerships present opportunities for cross-promotion and shared revenue. For instance, partnering with a home delivery service adds value for OfferUp users and allows OfferUp to earn a percentage of the delivery fees charged.

Premium Subscriptions

OfferUp offers a premium subscription service for an ad-free experience, priced at $7.99 per month. It also allows users to reach more people than a regular account, have their listings featured, and be able to use advanced selling features. This recurring revenue from subscriptions is another part of OfferUp's business model.