How does Letgo work?

Letgo is a classified app that helps buyers and sellers connect. It is limited to goods only while other apps list services as well. It is very simple to use. All you have to do is to put up a picture of the item you want to sell & then interact with potential buyers. For buyers, they can search an item they want to buy and Letgo will show a result based on your location. Take a look at some of the key features of the Letgo:

• Chat: Buyers and sellers can interact with the chat feature. This chat could be about anything from price negotiations to exchanging contact details of each other.
• Image recognition: Letgo has integrated artificial intelligence to optimize your buying and selling experience. It uses image recognition technology to suggest you categories in which your item can be put once you click and upload its picture.
• Geographic Location: Letgo uses your location to get you best possible results. This filters a lot of irrelevant spam that you do not wish to see. The results shown are within 50 miles of your location to encourage better deals.
• Review: Once you purchase something from someone, you can leave a comment or you can rate your overall experience. This will show on the seller’s profile. This makes it very easy for new buyers to recognize genuinely good sellers by their ratings and feedback comments.

How does Letgo Make Money?

Inspired by the idea of Oxenford’s former venture OLX, the way Letgo make money depends on the adaptation of the same concepts as OLX. Letgo gives a platform to buyers and sellers to buy and sell their used products in 35 countries. A general wondering is that how does Letgo make money if they don’t take any commissions from the buyers or sellers for their listed products? Letgo doesn’t even force users to make transactions through their app or website. Users can contact each other and meet in person to crack the deal. If none of the transaction amounts of the product goes to Letgo, then how does it run and how does it become worth a billion dollars?

A conventional classifieds field would charge any user to post an advert, but not the modern day app based on a strong system like Letgo business model. While Craiglist charges its users to post an ad, it’s completely free to do the same on Letgo. The whole app is based on adverts by users so putting more ads would only complicate the interface. So the only way Letgo make money is to generate revenue by offering premium memberships, as Letgo would like to call, the bump feature.

Read More About: Letgo Business Model