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How Does Vinted Make Money? Vinted Business Model In A Nutshell
Vinted is an online shopping marketplace with a strong secondhand component. The company makes money via its buyer protection service. The buyer pays a fee to Vinted in exchange for services like customer support, insurance, and tracked shipping; Shipping costs; Wardrobe Spotlight (helping users boost the visibility of their items). And Bumping listed items.
Vinted is an online community marketplace headquartered in Vilnius, Lithuania.
The platform was created by Milda Mitkute and Justas Janauskas in 2008 during the prototype testing of a website where women could trade clothing. The need for a prototype arose after Mitkute found herself with too many clothes while trying to move house.
After recruiting someone to help with advertising and promotions, the site was expanded into Germany where it now operates as Kleiderkreisel.
In 2010, Vinted became available the United States. Two years later, the company launched a mobile app on iOS and Android to partner with the desktop version.
Today, Vinted gives users the ability to buy, sell, and swap clothing or accessories in 12 countries. According to the company, it now has a community of 37 million men and women.
Vinted revenue generation used to be reliant on charging seller fees for every completed transaction.
However, the company has moved away from charging consumers to list or sell their clothing items. It now makes money in a few different ways that are explained below.
Buyer protection/service fee
The buyer protection fee is paid by the buyer to Vinted in exchange for services like customer support, insurance, and tracked shipping.
The fee is 5% of the item price (excluding taxes and postage cost) plus an additional fixed amount of $0.70.
It is important to note that this fee is a mandatory charge to protect the integrity of the Vinted payment process.
The buyer also bears the cost of shipping, with prices dependent upon the size of the package and the type of courier service used.
Vinted passes the freight cost to the buyer and likely makes no money from the arrangement. However, some believe it turns a profit because it can ship in bulk and receive a discounted price from the courier.
Wardrobe Spotlight (UK)
Wardrobe Spotlight is a feature unique to Vinted UK, helping users boost the visibility of their items in the marketplace. For a full week, Vinted customers can have items from their wardrobe shown in dedicated spots in the news feed of other members. These members will also have easy access to the rest of the seller’s range of items.
This extra visibility is also targeted. In other words, it will be shown to members with similar body sizes and brand preferences. Vinted charges £6.95 for the service.
Bumping listed items
Similar to Wardrobe Spotlight, users can purchase a bumping service to get their items to appear in the news feed or search results of other members.
The bumping service occurs once a day for a predetermined number of days or until the item is sold. Vinted charges $0.95 per item for a three-day bump.
Vinted is an online community marketplace founded in Vilnius, Lithuania, in 2008. The idea for the platform came when founder Milda Mitkute needed to offload excess clothing during the process of moving house.
Vinted does not charge its users for listing or even selling their unwanted items. Instead, their revenue generation is dependent on buyers who must pay all of the transaction and shipping costs.
Vinted also makes money with its Wardrobe Spotlight service. For a relatively small fee, users can pay to have their listings made more visible in the news feeds or search results of buyers.
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