Digital classified ad marketplaces have become increasingly popular and are emerging as a lucrative business online.
How classified apps are getting into the massive market now?
A decade ago, connecting sellers with consumers was more challenging without a physical retail location. However, with the advent of smartphones and the evolution of Internet technology, everything is now accessible through mobile applications.
Today, people can easily buy and sell new or used products via classified software apps from the comfort of their homes. While classified apps like Letgo Clone and Offerup have already made a significant impact in the industry, their popularity has soared even further after the pandemic.
Statistics indicate that the usage of mobile applications for daily needs and business requirements surged during the pandemic situation worldwide. Classified ad marketplaces have played a significant role in this trend, contributing to a large share of the global economy.
Starting a business in the digital classified ad marketplace presents a robust opportunity to achieve a substantial return on investment in a short period. Let's explore how:
Lucrative Opportunity of Classified Ads Marketplaces
As a startup, it's natural to be concerned about the future scope and public response of your business. To relieve your anxieties, here’s a compiled research report for you.
While many entrepreneurs focus only on e-commerce shopping websites and fail to get into the rare business models like classifieds marketplaces.
Research indicates that out of over 3 lakh e-commerce websites globally (excluding China), only 35% are classified websites and apps. This suggests that there's a balanced opportunity for buy/sell apps like Letgo and Offerup, with 65% of the market still untapped.
Furthermore, in 2022, the total revenue of the classified marketplace apps valued at $250 billion and is projected to reach $5000 billion by 2026 with a CAGR of 17%.
Based on these insights, launching a classified ad marketplace is an incredibly promising business venture both now and in the future. A well-designed, user-friendly classifieds ad app has the potential to generate significant revenue beyond your expectations.
Now, let's delve into the top business models in the classified ads marketplace.
Top Business Models of Classified Marketplace
Classified ad marketplaces can be categorized based on various factors, including the types of products or services they facilitate the buying and selling of, as well as the platform's focus or target audience. Here are several types of classified ad marketplaces:
1. Classifieds For Used Or New Products Sell Items
This business model offers a platform for users to buy and sell both new and used items at no cost. Sellers can easily upload product photos and list their items on the app for sale.
Buyers can easily browse through the app to find the items they need and make direct purchases from sellers. This model serves as a catalyst, connecting buyers and sellers through a classified ads platform without acting as an intermediary.
Here are some popular product-based classified scripts that you can explore:
OLX Clone
OLX, a renowned online classifieds platform used globally, has inspired the creation of the OLX clone script. The OLX script presents OLX's success by offering similar features and functionalities to users.
Revenue for the OLX clone app comes from sponsored listings, premium subscription plans, and transaction fees for successful sales.
Carousell Clone
Carousell, a popular classifieds app in Southeast Asia, focuses on fashion and lifestyle items. With a Carousell clone script, you can create a similar platform targeting a fashion-centric audience.
Carousell clone scripts typically include features such as image-heavy listings, in-app chat, user profiles with the following functionality, integrated shipping options, and "like" and "share" listings.
Revenue generation strategies for the Carousell clone app involve offering paid promotions for listings, transaction fees per sale, and premium features for a fee.
Shopck Clone
Shopck is a popular European classifieds app focused on casual buying and selling. A Shopck clone script targets a similar audience, offering features like fixed-price listings, in-app chat with emoji support, integrated shipping options, a "bump" feature to increase ad visibility, seller verification for trust, and user ratings and reviews.
Revenue generation methods for the Shopck clone app include targeted ads, transaction fees, and premium features.
Letgo Clone
Letgo is an online marketplace app for buying and selling a variety of products locally. A Letgo clone script is a ready-made software solution that replicates the features and functionalities of Letgo. If you’re aiming to target a younger demographic interested in buying and selling trendy, used items, a Letgo clone app can be a perfect option.
Monetization methods for the Letgo clone app include highlighted listings, premium subscription plans, and transaction fees per sale.
Offerup Clone
OfferUp is a renowned online marketplace app in the US that enables users to buy and sell a wide range of products locally. An OfferUp clone script is an ideal choice if you want to create a platform in the US that caters to users interested in buying and selling both used and new products.
The OfferUp clone app generates revenue through various methods, including transaction fees per sale, paid promotions for listings, and premium accounts offering additional features.
2. Classifieds For Automobile Or Vehicle
While many automobile shoppers are accustomed to researching prices and specifications before making a purchase decision, the use of online automobile classifieds remains relatively low compared to other industries.
Despite the vast size of the automobile industry, online classified services for vehicles are relatively low. Therefore, developing cars classified script for selling both new and used automobiles could prove highly lucrative in the global economy.
3. Classifieds For Pets
Pet classifieds are becoming increasingly popular in the classifieds industry. Developing a pets classified script that integrates listings from shelters and rescues across various locations can greatly assist users in finding pets.
In addition to pet classified listings, incorporating pet-related products such as toys, collars, leashes, beds, etc., into your app or website will further enhance its appeal and reach a wider audience.
4. Classifieds for Real Estate
Real estate classifieds are gaining traction in the classifieds ads market. Creating a real estate classifieds script that aggregates listings from various agents, agencies, and property owners across different locations can be a game-changer for users looking to buy, sell, or rent properties.
Apart from property listings, integrating related services such as mortgage options, home inspection services, interior decoration, and moving companies into your platform can elevate its attractiveness and cater to a broader audience.
5. Classifieds For Jobs
The recruiting process is increasingly digitized, representing an endless search for job seekers and employers alike. Major job sites are experiencing heightened income from their subscribed users and employers. Therefore, investing in this lucrative field with a robust and advanced jobs classified script can lead to significant profits.
There are various types of job classifieds, including:
Job aggregator sites
Job board sites
General job sites
Let's determine which type best suits your business requirements based on its demands.
Wrapping Up
Launching an online classified marketplace requires the business model to meet market demands and user expectations.
Whether you're focusing on specific niches like cars, pets, or real estate, or aiming for a comprehensive platform, the above-mentioned business models offer the essential features to kickstart your business successfully.
Consider your business goals, target audience, and budget to choose the business model that aligns best with your objectives, and begin your entrepreneurial journey to success in the booming online classified ads market.