Have you ever tried selling things you don’t need anymore online? You need to go to an online shopping website like eBay or Amazon, create your own profile and start posting all the products you want to sell. When a transaction is made, it’s very likely that you need to pay a fee to the website. You think that’s easy enough? Now there is an even easier way for you to sell things just on your smartphone by using Carousell.
About Carousell: What is Carousell?
Based in Singapore, Carousell is a mobile classified app which provides an C2C online marketplace for its users to buy or sell things on their iOS or Android devices. Carousell wants to make selling and buying online easier. Launched in 2012, Carousell has been working on improving user experiences and providing better services. Sellers on Carousell can sell things simply by taking photos of the item, listing it on Carousell and then selling it without any expenses or extra fees. Buyers can search for things they want simply by scrolling down the Carousell app. Once they find something, they can chat with the seller immediately and make the transaction as soon as possible. Until now, Carousell has become one of the world’s fastest growing online marketplaces. We can see Carousell providing services in 13 cities with over 41 million listings, including a diverse range of product categories like fashion accessories, lifestyle gadgets, and furniture.
Business model: How does it work?
Carousell provides a platform, a C2C online marketplace for its users to sell and buy things just with a few simple touches on their smartphones. There are two types of users on Carousell: sellers and buyers. Sellers take photos of the items they intend to sell, list them on Carousell and wait for buyers’ inquiries. Once buyers find the ideal item, they can send a private message to the sellers and discuss about the detail. Carousell doesn’t charge any fee on either seller or buyers regarding all the transactions. The service is completely free. However, how do Carousell make money? At first, Carousell is backed by international Venture Capitalist like Rakuten Ventures, 500 Startups and Golden Gate Ventures. They don’t charge users any fees because they are more focusing on growing its user base and market share. With more and more users using Carousell, now they are looking for ways to monetize their services. By making money through paid advertisements and premium services for users, Carousell is trying to generate revenue without the help of venture capitalists.
Carousell creates value and achieves joint profitability with its users. Sellers can get rid of the things they don’t use anymore or sell products on the platform Carousell provides, without paying any fee. Buyers can get what they want with an affordable price. C2C commerce no longer has to be processed by computers or laptops. All the product inquiries and transactions can be done on their mobile phones. Carousell not only provides a marketplace where people can trade, but also offers convenience so as to reduce the time and effort people spend. Meanwhile, users also give value to Carousell by creating a bigger user base. With a bigger user base, Carousell have more data for big data analysis and can sell advertisements to make a profit.
Tan, C. & Ming, C. (2016). Classifieds app Carousell exploring premium listings, services to bring in revenue. Retrieved from: http://www.cnbc.com/2016/11/03/classifieds-app-carousell-exploring-premium-listings-services-to-bring-in-revenue.html on 2017/3/9
Russell, J.(2016). Southeast Asia-based Carousell raises $35M for its social commerce app. Retrieved from: https://techcrunch.com/2016/08/01/southeast-asia-based-carousell-raises-35m-for-its-social-commerce-app/ on 2017/3/9