- What is GOAT, and how does GOAT work?
- How does GOAT make money?
- Commission Fees
- Seller Fees
- Cash Out Fees
- GOAT subsidiaries, acquisitions, and exits
- GOAT profit and revenue
- What is the GOAT business and revenue model?
- GOAT funding, net worth, and valuation
How does GOAT make money? Well, here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the GOAT business and revenue model, how much GOAT makes per year, and how GOAT works.
What is GOAT, and how does GOAT work?
GOAT is an online marketplace offering sneakers, luxury apparel, and accessories through primary and resale markets.
Founded in 2015 by Eddy Lu and Daishin Sugano, GOAT now has more than 30 million members and 600,000 sellers who transacted $2+ billion of gross merchandise volume (GMV) on the platform over the past 12 months.
So, how does GOAT work? To use GOAT, you can simply download their mobile app in the Apple App Store or Google Play store; or go to their website.
Once on their marketplace, you can start browsing through items for sale. Once you find something you’re interested in, simply select your size and tap “Buy.” After that, enter your info, select a payment method and wait for your item(s).
Some of GOAT’s competitors include StockX, Grailed, Stadium Goods, and other resale markets for sneakers, apparel, and more.
How does GOAT make money?
According to a GOAT press release, GOAT has more than 30 million members and 600,000 sellers who transacted $2+ billion of gross merchandise volume (GMV) on the platform over the past 12 months.
So how does GOAT make money off of all these members, sellers, and gross merchandise volume?
Below is a breakdown of how much money GOAT makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 3 ways of how GOAT makes money in 2022
GOAT has a revenue model that makes money in three (3) ways; from commission fees, seller fees, and cash out fees.
#1. Commission Fees
GOAT makes most of its money from the commission it takes from each sale on its platform.
As noted above, GOAT handled roughly $2+ billion in gross merchandise volume (GMV) on its platform over the past 12 months. Of which, GOAT takes a 9.5% to 25% commission fee (plus a seller fee) from all of it.
Commission fees vary based on a seller’s rating. Sellers with a rating of 90 or above have a commission fee of 9.5%. Ratings between 70-89 the commission fee is 15%, 50-69 will be 20%, and sellers with a rating below 50 will be subject to a commission fee of 25% and be suspended from selling on GOAT.
Sellers can raise their rating and lower their fees through less seller cancellations and verification issues.
- 9.5% to 25% per sale (depending on the sellers rating)
Note: GOAT takes 9.5% to 25% + seller fee (talked about below) per sale
#2. Seller Fees
In addition to commission fees, GOAT also makes money by charging sellers a seller’s fee on each sale. How much the seller fee is depends on the seller’s country and address associated with their seller account.
What is the difference between GOAT commission fees and seller fees? Commission fees are a percentage of the sales price; while seller fees are a flat fee paid per sale.
GOAT seller fee
- $5 to $30 per sale (depending on the seller’s country)
Note: According to GOAT, only sellers within the United States can sell on GOAT at this time. The seller fee for U.S. sellers is $5 per sale.
#3. Cash Out Fees
Lastly, GOAT makes money each time a seller cash’s out their earnings from a sale.
Sellers can deposit their earnings via ACH direct deposit or PayPal. When this happens, a 2.9% “cash out fee” will be taken from each deposit.
GOAT cash out fee
- 2.9% fee per cash out
Note: The minimum cash out amount is $25.
GOAT subsidiaries, acquisitions, and exits
To date, GOAT has made a total of 1 acquisition, 1 investment, and 1 lead investment.
GOAT profit and revenue
GOAT has not released any official reports in regards to company earnings.
Note: Because GOAT is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the GOAT business and revenue model?
GOAT makes money through a few revenue models that they combine within their company, they are:
- Commission business model
- Fee for service (FFS) business model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
- Mergers and acquisitions (M&A) business model
GOAT funding, net worth, and valuation
According to GOAT’s Crunchbase profile, GOAT has raised $492.6 million over 9 rounds and has a post-money valuation of $1 billion to $10 billion as of June 24, 2021.