Vinted has gone from strength to strength since launching over 15 years ago. Once a small, humble company created to exchange clothes in Lithuania, it’s now used in more than 20 countries with tens of millions of users.

Today, we are peeling back the layers of this fascinating company to bring you a look at its revenue. So, let’s get straight to the point: How does Vinted make money?

Introduction to Vinted

Before we delve into the specifics of the financial workings of Vinted, it’s essential to grasp what the platform is all about.

Vinted is a popular online marketplace dedicated to second-hand fashion. This Lithuanian company, founded in 2008, has transformed how we buy, sell, and swap pre-loved clothing and accessories.

It allows users to declutter their wardrobes while giving new life to unused items, all with an environmental consciousness in mind. It is very similar to Depop, with the two often compared to one another.

However, Vinted has become increasingly popular in the last few years due to an improved app and low fees. Let’s look at how they generate revenue to run the business.

How does Vinted Make Money?

To answer the central question, “how does Vinted make money?“, we’ll examine their revenue streams.

Vinted, a popular online marketplace for second-hand clothing and accessories, generates revenue through various means, including:

1. Selling Fees:

When a user sells an item on Vinted, the platform may charge a selling fee. This fee is usually a percentage of the sale price and is paid by the seller.

This is how Vinted makes most of its money in the UK and the US. Though, different countries can have different revenue streams.

2. Buyer Protection Fee:

Vinted offers a buyer protection program that guarantees the item will be as described in the listing, and it will arrive in good condition.

For this service, buyers pay a small fee on top of the purchase price. This fee is a significant revenue stream for Vinted.

3. Shipping Fees:

Vinted partners with various shipping companies to facilitate easy shipping between buyers and sellers.

While the buyer usually pays for shipping, Vinted might earn a commission or markup on these shipping fees.

4. Promoted Listings:

Sellers can pay to have their items featured more prominently on the platform, increasing their visibility and chances of a sale. This service is another way Vinted generates revenue.

5. Advertisement:

Vinted displays advertisements on its platform, and it earns money through ad impressions, clicks, and sponsored content.

6. Subscription Services:

In some regions, Vinted offers a subscription service called Vinted Wardrobe Spotlight, which gives subscribers additional tools and visibility options to increase their sales. Subscribers pay a monthly fee for this service.

7. Additional Services:

Vinted might also offer other paid services related to shipping, returns, or other aspects of the buying and selling process.

8. Data:

With millions of users and transactions, Vinted accumulates a vast amount of data, which could be valuable for market research, trend analysis, and more.

While it’s unclear how much Vinted capitalizes on this data, it represents a potential revenue stream.

Business Model and Community Building:

Vinted’s business model is focused on creating a community of buyers and sellers, and it emphasizes sustainability and responsible consumption.

By facilitating the sale of second-hand items, Vinted helps reduce waste and promote a circular economy.

The fees and services offered by Vinted are designed to support this community, ensure safe and trustworthy transactions, and generate revenue to sustain and grow the platform.

By providing a user-friendly platform, a robust buyer protection program, and various tools and services for sellers, Vinted has positioned itself as a popular choice for buying and selling second-hand fashion.

As the platform continues to grow, its revenue streams are likely to evolve and expand, further supporting its mission and community.

Conclusion

In essence, Vinted makes money by implementing a buyer protection fee and offering optional promotional features to its users.

These revenue streams, coupled with their commitment to sustainability and excellent user experience, make Vinted a prominent player in the online second-hand marketplace.

FAQs

1. How does Vinted ensure the security of transactions?

Vinted secures transactions through its buyer protection fee. This small fee ensures refund eligibility in case of non-delivery and even covers return shipping costs for eligible cases.

2. What are the optional promotional features offered by Vinted?

Vinted provides features such as ‘Bumps’, ‘Wardrobe Spotlight’, and ‘Item Spotlight’. These paid services help sellers boost the visibility of their listed items or their entire wardrobe, thus increasing the chances of a sale.

3. What sets Vinted apart from other online second-hand marketplaces?

Vinted’s Unique Selling Proposition (USP) lies in its commitment to sustainable fashion. By encouraging the buying, selling, and swapping of pre-loved items, it reduces the environmental impact associated with new clothing production.