The buy and sell marketplaces like Letgo are getting more popular in recent days. According to the latest statistics, 1.8 billion customers use the buy-sell marketplace and global e-sales have reached 3.8 trillion dollars in 2021.
These facts clearly prove that online marketplaces for buying and selling products have a great scope in the future. Now, every aspiring entrepreneur will think about how to build a marketplace app like Letgo. To know about this, you need to understand more about Letgo and its features.
What is Letgo? and why is it so popular?
Letgo is a renowned marketplace solution that allows users to buy and sell products, especially used products in a nearby location. Customers can buy products at a reasonable price and can experience more convenience while shopping with Letgo. With its perfection on customer satisfaction, the company has been listed in the top 10 buy-sell marketplaces in the industry.
Letgo is more popular than any other marketplace in the market. The platform holds more than 74 million users. Letgo allows users to meet other users in person to proceed with the selling process. The platform has a better authentication feature that secures users’ data from all security threats.
How Does Letgo App Work?
Letgo marketplace works through a dedicated mobile application that works on both Android and iOS devices. Users will take a picture of the product they want to sell and will list their items for sale through the app. The user needs to give a proper description of the product and should set a price for it. Buyers will go through the image and the description can have in-app chat with the seller.
Payment cannot be processed within the app, as the platform suggests users meet in public and exchange their payments and buy and sell products. It is the buyers’ responsibility to check whether the seller is a genuine person and the platform will not take any responsibility if any issue arises.
How Is The Letgo Business Working Model?
Let us analyze the business working model of Letgo that has supported the platform to be more popular among the audience.
- Simplified user registration – letgo allows users to register themselves with the platform with just a few clicks. Also, they can use their social media credentials to log into the marketplace and start accessing the features of the platform.
- Sellers – sellers join the platform and will request the admin to list their products. The platform recognizes the product and will display it. Letgo allows sellers and buyers to communicate with each other easily.
- Buyers – buyers can search and find products on the platform. They can go through the product and will be able to check the images and the description of the product. They can chat with the concerned sellers and can have the negotiation process.
- Featured listing – sellers can bump up their products and make them easily visible to their audience and this will help them get easy order conversions and help them to make better income.
- Payment process – in-app payment is not supported and Letgo suggests users have one-to-one contact and transfer the payment in person.
How Does Letgo Work For Sellers And Buyers
Millions of people utilize the Letgo app to sell and buy used products and the platform has posted more than 400 million listings. Letgo has an organized way of dealing with sellers and buyers that have made the platform a great success in the market. Here are some of the ways that Letgo follows in its business model.
Chatting
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Sellers and buyers are allowed to communicate with each other as they have registered their mobile numbers at the time of registration. Each user can check other users’ profiles and get their contact details. If someone behaves inappropriately then the user can block that particular user.
Meeting up
Users can buy a product from other users who are residing in a nearby location. The shipping process is completely skipped. Users can meet in a public place and can view the product directly, then negotiate and finalize the order.
Closing the deal
Once both the parties are convinced with the order, buyers will check the product for any damage and the seller will check whether he has received the proper amount and then will close the deal.
Monetization Model Of Letgo Like App
Advertisements – apart from posting a product, sellers can pay and put advertisements about their products that will get them greater visibility and support in better conversion. The advertisement cost varies according to the number of products that sellers want to post.
Subscription fee – platform charges buyers a subscription fee as it will allow them to access all features in the platform. it is not compulsory as every buyer can register themselves with the platform free of cost. For further access, they need to subscribe.
Listing fee – sellers are restricted to post for free on the platform. if they want to post multiple products at the same time then they have to pay the listing fee to the platform.
This is how Letgo earns from its sellers and buyers. If you want to build a C2C marketplace platforms app like Letgo then you should be clear about the monetization strategy that Letgo implements.
Detailed Workflow Of How To Create A Marketplace App like Letgo
Deep market analysis – this is the preliminary aspect that any entrepreneur should do before entering into any online business. Know more about the market and its demand.
Plan your business model – this is very essential to earn a better income. You need to fix your business model that will suit your buy and sell online business.
Build your website – your website is going to be entry-level for your audience. So put more focus on building a website that can attract more visitors and get more leads.
Attractive UI and UX – while building your platform, you need to make sure that the platform has the most attractive UI and UX that can grab the attention of the audience and make them stay with your platform, and can reduce your platform bounce rate.
Integrate payment gateway – if you prefer to offer an online payment facility to your customers then you need to focus on integrating payment gateways with your platform. make sure the payment processors are familiar and reputed in the market.
Build an app – you have enough budget then you can go for building an app like Letgo. You need to hire a skilled mobile app developer or even there are many Letgo Clone scripts available and you can use them for your mobile application.
Focus on privacy and security – being an online platform, it is prone to hackers. You need to have an SSL certification and protect your marketplace from any form of cyberattacks.
Promote your app and website – branding is very essential for getting more audience. People prefer familiar brands to buy and sell their products. Make your brand more visible to your audience and get their attention.
Impeccable Features To Build A Buy-Sell Marketplace App Like Letgo
To have a clear picture of how Letgo is performing, you need to analyze its features. Features determine the success rate of any marketplace platform. Now let us take a deep look at the features that the Letgo app relies on.
Social media login – all your target audiences are actively present on the social media platforms. So, it has become mandatory to offer social media login for your audience. This will take less time to register themselves with your platform.
Advanced search and filters – customers do not want to take more time in searching for their products. They may lose interest and can quit your platform. For this, you need to offer them advanced search and filtering options that will simplify their search process.
In-app camera – sellers can capture the images through their app and can post that image in the product section. This reduces the time of taking images separately and then uploading them into the product page.
In-app chat feature – buyers and sellers are allowed to communicate through the app and this will reduce unwanted confusion on products and will reduce return issues.
Review and rating – to build brand credibility you need to allow users to share their feedback about your service. This will help you to understand how well your platform is performing and what necessary action needs to be taken to enhance its performance.
Push notification – this feature is a mandatory one as it lets users stay informed about new arrivals, offers and discounts, and many more.
Global connecting features – if you want to cover a global audience with your platform then you should have multiple language support and multiple currency support. This will let the audience from any part of the world access your platform without any difficulty.
Exceptional And Additional Features
Compare product pricing – as your platform contains multiple sellers, you need to allow buyers to compare products from several sellers and should compare their pricing too. This will help them to find the best seller.
Offer hot deals – customers are always attracted to deals and discounts as they can save their money. Your platform should offer hot deals on a seasonal basis and this will facilitate users to show more interest in buying products during seasons.
Auto-detect location – while registering with your platform you can support users by detecting their location automatically and filling them in the respective column without making them type their location.
Virtual try-on – this is one of the advanced features of any marketplace platform. Users can try the products using their mobile camera and can have the same look and feel. This will help them to decide on buying the product.
How Much Does It Cost To Create A Mobile App Like Letgo?
You should raise this question only when you are clear with what you want and the modules you need to have in your platform. Because each factor determines the cost for developing a buy and sell application like Letgo.
If you are a startup then you can go with the basic features and functionalities. If you have enough budget then you can think about building the platform from scratch. If you focus on having an enterprise-grade application then you can think about adding advanced and exceptional features.
The cost for the development of the application completely depends upon your business requirement. It is very difficult to blindly estimate the cost.
Conclusion
By going through the extensive discussion, about the Letgo app business and revenue models, its working pattern, exclusive features, and cost determining factors, we hope you have gained good knowledge that will give you confidence in choosing what you want. Make sure you build a flawless buy and sell marketplace platform that will attract millions of users and gets you better income.
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