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Business Operations Business Models

How Does Vinted Make Money (Business and Revenue Model)

The Vinted business model

How Does Vinted Make Money?
Here’s what you should know:
  • What is Vinted, and how does Vinted work?
  • How does Vinted make money?
  • Buyer Protection Fees
  • Promoted Listings
  • Third Party Advertising
  • Vinted’s profit and revenue
  • What is the Vinted business and revenue model?
  • Vinted’s funding and valuation

How does Vinted make money? 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 Vinted business model, their year-over-year revenue, and how Vinted works.

What is Vinted, and how does Vinted work?

Vinted is an online marketplace app for buying and selling new and secondhand clothing, shoes, accessories, and more.

Founded in 2008 by Milda Mitkutė and Justas Janauskas, Vinted now has more than 45 million users with a $4.5 billion valuation.

How Vinted works is: Once a user creates a Vinted account, they can buy or sell items on the marketplace. Vinted doesn’t charge sellers commission fees, but they do offer paid promotional tools to advertise their listings.

Some of Vinted’s competitors include Poshmark, EtsyOfferUp, Depop, Mercari, Facebook Marketplace, eBay, and other marketplace apps.

Vinted App in Apple App Store | Vinted Business Model | How Does Vinted Make Money?
Source: Apple App Store

How does Vinted make money?

Some of Vinted’s statistics include some 45 million users and  €1.3 billion EUR ($1.54 billion USD) in Gross Merchandise Volume (GMV).

So how does Vinted make money off of all their users and gross transaction volume on the platform?

Below is a breakdown of how much money Vinted makes and its revenue model. Including all their revenue streams and how much they charge for their services.

Here are the 3 ways of how Vinted makes money (in 2021):

Vinted has a revenue model that makes money in three (3) ways – Buyer Protection Fees, Promoted Listings, and Advertising.

#1. Buyer Protection Fees

Vinted charges buyers a buyer protection fee on every order made through Vinted. This fee is mandatory and is applied automatically at checkout on top of the item price.

This protects the buyer from things like damaged items, items lost in shipment, items that are significantly different than described, fraud, and more. If a buyer experiences any other the following then a full refund will be issued.

Vinted’s Buyer Protection Fee:

  • 3% to 8% of the item price + £0.30 to £0.80 GBP ($0.42 to $1.11 USD)

Note: By making Buyer Protection Fees mandatory, Vinted makes up for offering commission free sales to sellers by charging the buyers instead.

Vinted does not make money from their sellers through commissions on sales, so they make money by offering sellers promotional tools to make their listings more visible..

The two (2) promoted listing tools Vinted offers, are: Item Bumps and Wardrobe Spotlight.

Sellers can purchase bumps, which promotes your listing for 3 consecutive days or until the item is sold. Or, sellers can purchase wardrobe spotlights that promote your listings for 7 consecutive days.

Vinted Seller Fees (For Promoted Listing):

  • Bumping Listed Items Fee: £0.95 GBP ($1.32 USD) per bump
  • Wardrobe Spotlight Fee: £6.95 GBP ($9.66 USD) per wardrobe spotlight
Vinted Bumps | Vinted Seller Fees | Vinted Business Model | How Does Vinted Make Money?
Source: Vinted

#3. Third Party Advertising

Another revenue model for Vinted is through advertising.

They allow third party ad networks to serve up advertisements on the newsfeed and listing pages of their website and app to their 45 million users.

Vinted’s profit and revenue

Vinted’s last reported revenue was €​32.9 million EUR ($38.9 million USD) in 2018. Any revenue reported for 2019 and 2020 is unverifiable.

Note: Because Vinted is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Vinted business and revenue model?

Vinted makes money through a few revenue models that they combine within their company, they are:

  • Fee-for-service (FFS) business model
  • Advertising based business model

Vinted’s funding and valuation

According to Vinted’s Crunchbase profile, Vinted raised $562.3 million over 6 rounds with a valuation of $4.5 billion.