How Does OfferUp Make Money? 2022 Full Business Model

It is not wrong to know how certain app makes their money. This curiosity will arise from how safe it is and how it might just lead you to an idea that can make you a lot of money.

OfferUp is gradually becoming a household name in the C2C marketplace. For this reason, they have drawn a lot of attention as their users
have grown.

How does OfferUp make money? That’s what I will reveal in this article.

But before I talk about that, let me tell you about this company and what they do.

What Is OfferUp

According to Wikipedia, OfferUp is an online mobile-first C2C marketplace with an accent on in-person transactions.

In essence, users or individuals can buy and sell items. Available categories include clothing, furniture, automobiles, and many more.

The company burst into the E-Commerce scene in 2011, mainly as a competitor to Craigslist.

Currently, OfferUp has become one of the largest marketplaces for buyers and sellers. Distinguishing itself with its mobile-friendly app, allowing users to upload pictures of the stuff they sell and also rate buyers and sellers.

OfferUp is often called one of the best places to sell used stuff because the user interface is visually appealing and easy to use.

OfferUp software, which is available for iOS, Android, and web, allows the buying and sale of used goods.

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How Do OfferUp Works?

OfferUp puts a great deal of stress on in-person communication between buyers and sellers.

Buyers can use the app’s chat functionalities to ask questions about the product or arrange a meeting with the seller to further examine the potential purchase.

Also, customers can browse and purchase products from a broad range of categories, which are: furniture, clothing, sports equipment, toys, and many more.

As the company’s name implies, buyers can make an offer of products they will like to buy. So both buyer and seller can negotiate on the final price.

After the item is successfully delivered, the buyer has two days to inspect it and complete the purchasing process.

Every seller has a profile on OfferUp’s platform, displaying their rating, number of reviews, location, and sometimes even pictures, to increase trust between them and the buyers.

So, after the purchasing process between the buyer and seller, the buyer can now rate both the seller and the product.

Is OfferUp Safe?

Yes, OfferUp is generally safe to use as any other digital marketplace like Mercari, eBay, Esty, or Facebook Marketplace.

This service doesn’t do background checks, but it does have steps to become a verified user including the TruYou program.

With TruYou, a user verifies their phone number, submits a scan of a state-issued ID, and takes a selfie.

Following these steps, OfferUp will compare the information you provide and add the TruYou verification badge to your account if you are positively confirmed.

Note that you can block or report a user within the app if you are uncomfortable or have a bad feeling about a seller or buyer.

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How Does OfferUp Make Money?

OfferUp does make money from the various products and services that it offers to sellers, just like any other marketplace. Consequently, its platform is free of charge for any buyer using it.

For the first five years of business, they did not monetize their seller base. It furthermore helped them to compete with the likes of Craigslist and Facebook’s Marketplace platform, which don’t charge their sellers till now.

So, the way OfferUp makes money is by allowing users to promote their posts for a fee and through hosting ads on the platform.

Each type of paid content is labeled “Promoted” or “Ad” respectively. Just posting on the app is free.

In summary, OfferUp still make money through these means listed below

  • A minimum of $1.99 per sale, or 12.9% of the sales price for sellers on OfferUp that pays a service fee when they sell an item that needs to be shipped.
  • you can pay to promote the items you’re selling and displaying at the top of the user’s feeds. The 1-day promotion is priced at $2.99, the 3-day promotion is priced at $7.99.
  • For the promoted listing, the promotion plus plan starts at $19.99 per month. 
  • Also, through the Verified Dealer Program: The program offers various advertising tools that aid dealerships with making more sales, for instance through an AI-powered top lead indicator, a click-to-call button, or automatic DMS importation

Note: Know that as a seller you can cancel anytime either through the app or in the Google Play and iOS App Store.

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OfferUp Full Business Model

The full business model of OfferUp is based on charging sellers on the sales made and shipped through its platform. Furthermore, the company makes money through promotional listings and a dedicated program for car dealerships, which are explained in the course of this article.


OfferUp app is free to download with its amazing product design and features which has made transactions between buyers and sellers painless.

The company has tremendously grown in the last few years especially in the user interface which is visually appealing and easy to use. They also boast of a good communication interface between the buyer and seller.

So with this innovation, there’s no doubt that OfferUp will continue to dominate the mobile marketplace.


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