{"id":1383,"date":"2019-12-11T07:52:19","date_gmt":"2019-12-11T07:52:19","guid":{"rendered":"https:\/\/dguaenew.demoz.agency\/blog\/\/?p=1383"},"modified":"2024-12-06T17:40:32","modified_gmt":"2024-12-06T13:40:32","slug":"olx-business-model-how-it-works-make-profit","status":"publish","type":"post","link":"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/","title":{"rendered":"OLX Business Model: How it Works &amp; Make Profit?"},"content":{"rendered":"<p style=\"text-align: left;\"><strong><em>OLX Group <\/em><\/strong>is a C2C <em>(Consumer-to-Consumer)<\/em> online global marketplace allowing people to sell and buy stuff directly, without any intermediary party. The platform began its operations back in 2006 and today operates successfully in more than 45 countries. In 2014, OLX reported having above 11 billion-page views and more than 200 million monthly active users, nearly 8.5 million monthly transactions and approximately 25 million listings. To understand the business model and how OLX group has grown to be one of the biggest C2C online platforms, let\u2019s dig into its history.<\/p>\n<p><span style=\"font-weight: 400;\">As far as OLX\u2019s traffic is concerned, OLX gets sustainable page views and business through organic reach. According to SEMRUSH, OLX received 7M visits with an average session duration of 20:37 in September 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To understand the <strong>OLX business model<\/strong> and how OLX has grown to be one of the biggest C2C online platforms, let\u2019s dig into its history.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Key Takeaways<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #555555;color:#555555\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #555555;color:#555555\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#history\" >History<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#olx-business-model-how-it-works\" >OLX Business Model &amp; How it Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#how-does-olx-makes-money\" >How Does OLX Makes Money?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#google-ads\" >Google Ads<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#featured-listings\" >Featured Listings<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#olx-traffic-share-by-device\" >OLX Traffic Share by Device<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/#future-perceptions\" >Future Perceptions<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"history\"><\/span>History<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: left;\"><em>Fabrice Grinda <\/em>and <em>Alec Oxenford <\/em>founded the company in 2006 as an alternative to <em>Craiglist<\/em> outside the boundaries of the U.S. <em>Naspers<\/em>; a South African media and technology group acquired 95% of the company in 2014, having its headquarters in <em>Amsterdam<\/em>. OLX has a very active and strong presence in <em>Portugal, Ukraine, the Philippines, Kenya, Nigeria, India, Brazil, <\/em>and<em> Pakistan<\/em>.<\/p>\n<p style=\"text-align: left;\">Before <em>Naspers <\/em>purchased the company, the C2C classified website received funds by many different firms namely <em>General Catalyst Partners, Nexus Venture Partners <\/em>and <em>Bessemer Venture Partners<\/em>. A few statistics worth considering are:<\/p>\n<ul style=\"text-align: left;\">\n<li>OLX succeeded <em>Google Trader <\/em>as one of the biggest and leading classified websites forcing the search engine giant to shut down its own.<\/li>\n<li>It also competes equally <em>(in terms of views and visits)<\/em> with some of the major <strong><a href=\"https:\/\/www.digitalgravity.ae\/services\/social-media-marketing-dubai\/\">social media marketing<\/a><\/strong> platforms like <em>Facebook, Instagram, <\/em>and <em>Snapchat<\/em> by obtaining above 200 million monthly visits.<\/li>\n<li>OLX transactions reached almost 9 million.<\/li>\n<\/ul>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"olx-business-model-how-it-works\"><\/span>OLX Business Model &amp; How it Works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Curious to learn how OLX works and if OLX is profitable? OLX\u2019s business model is simple yet quite profitable. There\u2019s little to no risk involved as the platform only serves as a mediator between a buyer and seller.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p style=\"text-align: left;\">OLX business model is C2C <em>(Consumer-to-Consumer)<\/em> based on a simple classified website. The revenue model, however, is much different when compared with <em>Craigslist<\/em> as it has a parallel system for customers operating side by side. The platform allows sellers to directly upload pictures of the stuff alongside text details, just like an actual advertisement.<\/p>\n<p style=\"text-align: left;\">Buyers can also connect with the seller without any third-party intervention, bargain the price and buy. In fact, the buyer can even browse several alternatives of the primary product to find the most suitable seller in terms of product quality and cost to execute the purchase. On segmenting the typical business model, it functions as follows:<\/p>\n<ul style=\"text-align: left;\">\n<li>OLX\u2019s business structure is scale-dependent whereas the website acts as a classified portal, connecting buyers and sellers.<\/li>\n<li>OLX invests heavily to gather more user traffic, increase the number of listings and operate at a much greater frequency.<\/li>\n<li>OLX earns revenue by monetizing on the number of searches and clicks from the incoming web traffic.<\/li>\n<\/ul>\n<p style=\"text-align: left;\">Unlike being an intermediary to sellers\u2019 products, the OLX approach is totally different. Its prime earning is driven through advertisements, sponsored links and listings, and Google Custom Search Engine.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-does-olx-makes-money\"><\/span>How Does OLX Makes Money?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"google-ads\"><\/span><strong>Google Ads<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">OLX revenue model entails little to no risk.\u00a0 <\/span>Most of OLX\u2019s profit is generated from <em>Google Ads Monetisation <\/em>as the company is affiliated with different partners which are interlinked to <em>Google <\/em>and many other advertisements and <a href=\"https:\/\/www.digitalgravity.ae\/services\/digital-marketing-agency\/\"><strong>digital marketing agencies in Dubai<\/strong><\/a> that act as major ad suppliers and mediators for the website. All the advertisements work in association with the OLX website whereas the content is displayed on the official site itself. Do note that the number of ad units varies per web page.<\/p>\n<p style=\"text-align: left;\">Brand advertisements on television also result in bringing a high level of web traffic to the website thereby generating more revenue. For the typical online ads, <strong><em>Google AdWords <\/em><\/strong>strategies result in profitable results such as <a href=\"https:\/\/www.digitalgravity.ae\/services\/pay-per-click-dubai\/\"><strong>Pay Per Click advertising and marketing<\/strong><\/a> <em>Cost Per Click (CPC), Cost Per Thousand Impressions (CPM),<\/em> and <em>Cost Per View <\/em>against the video ads that are displayed on the homepage as well as product listing page.<\/p>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"featured-listings\"><\/span><strong>Featured Listings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: left;\">If a seller updated a classified listing against a particular product, it ends up at the last of the list as more products are listed. This can be a loss to a seller whose product mightn\u2019t even be displayed on the first page but, to avoid such a situation, the seller has to pay a certain amount to keep the product appearing on the top of the first page. This way, the option is a source of revenue for both seller and OLX.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"olx-traffic-share-by-device\"><\/span><strong>OLX Traffic Share by Device<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As it goes without saying, OLX gets more visits from mobile devices than PCs and laptops. According to SEMRUSH, in September 2022, 41% of OLX traffic came from desktops while 59% of visitors came from mobile devices<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"future-perceptions\"><\/span><strong>Future Perceptions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The biggest, most active, and most profitable user base for OLX is in Pakistan, India, the United States, and the United Kingdom. The combined power of four makes up more than 75% of OLX marketing and success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the rate at which OLX is growing and expanding, we can expect it to be more active in regions where it\u2019s yet to build any significant presence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0All in all, OLX is a great example of a sustainable, risk-free business model allowing an entrepreneur to monetize traffic without selling a product or service.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><i>Do you want to create a website similar to OLX in Dubai? Get in touch. We\u2019d love to hear about your idea because we have the right team to assist you in this venture!<\/i><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OLX Group is a C2C (Consumer-to-Consumer) online global marketplace allowing people to sell and buy stuff directly, without any intermediary party. The platform began its operations back in 2006 and today operates successfully in more than 45 countries. In 2014, OLX reported having above 11 billion-page views and more than 200 million monthly active users, [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":1459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[76],"tags":[105,104,106],"class_list":["post-1383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-marketing","tag-google-ads","tag-olx","tag-pap-per-click"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>OLX Business Model: How it Works &amp; Make Profit? - Digital Gravity | UAE Digital Marketing &amp; Web Design Insights<\/title>\n<meta name=\"description\" content=\"OLX Group is a C2C (Consumer-to-Consumer) online global marketplace allowing people to sell and buy stuff directly, without any intermediary party.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.digitalgravity.ae\/blog\/olx-business-model-how-it-works-make-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OLX Business Model: How it Works &amp; Make Profit? 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