Vinted is an online shopping marketplace with a strong secondhand component. The company makes money via its buyer protection service. The buyer pays a fee to Vinted in exchange for services like customer support, insurance, and tracked shipping; Shipping costs; Wardrobe Spotlight (helping users boost the visibility of their items). And Bumping listed items.
Vinted’s value proposition revolves around offering an easy-to-use platform for buying, selling, and swapping second-hand clothing and accessories. For Sellers, Vinted provides: – A Large User Base: Access to a large community of potential buyers. – User-Friendly Listing Tools: Easy-to-use tools for creating listings. – Cost-Effective Selling: No listing fees and low selling fees. For Buyers, Vinted offers: – Affordable Shopping: Access to a wide range of second-hand items at competitive prices. – Secure Transactions: Payment protection and dispute resolution. Vinted simplifies the process of decluttering closets and finding affordable fashion.
Provides sellers access to a large user base and cost-effective selling. Attracts buyers with affordable shopping and secure transactions. Encourages sustainability through the resale of clothing. Satisfies the needs of sellers looking to declutter and buyers seeking budget-friendly fashion.
– Large user base increases visibility for sellers. – User-friendly listing tools simplify the selling process. – Low selling fees benefit sellers financially. – Affordable shopping appeals to budget-conscious buyers. – Payment protection builds trust in transactions.
Customer Segments
Vinted serves various customer segments, including: 1. Sellers: Individuals looking to sell their pre-owned clothing and accessories. 2. Buyers: Shoppers seeking affordable second-hand fashion. 3. Swappers: Users interested in trading items with others. Vinted caters to a diverse user base, from sellers looking to declutter their wardrobes to fashion-conscious buyers and swappers.
Focuses on diverse customer segments, including sellers, buyers, and swappers. Customizes the platform to address the unique needs and preferences of each group. Provides a versatile platform for second-hand fashion transactions.
– Serving diverse customer segments broadens Vinted’s user base. – Tailoring services enhances customer satisfaction and engagement.
Distribution Strategy
Vinted’s distribution strategy relies on its mobile app and website. Users can access the platform via the app or website to browse, list, and purchase items. The platform also utilizes social media and online marketing to attract users. Additionally, word-of-mouth and referrals from existing users contribute to its growth.
Primarily utilizes distribution through its mobile app and website. Offers online access for user convenience. Utilizes social media and online marketing to reach potential users. Benefits from word-of-mouth and referrals for organic growth. Ensures easy access to its platform for all users.
– Mobile app and website align with user preferences. – Social media and online marketing drive user growth. – Word-of-mouth and referrals contribute to organic growth.
Revenue Streams
Vinted generates revenue primarily through seller fees. Sellers are charged a percentage fee on the sale price when their items are sold. There are no listing fees. Additionally, Vinted may explore other revenue streams in the future, such as premium features or advertising. The primary revenue source is the seller fee.
Relies on revenue from seller fees, taking a percentage of the sale price. Does not charge listing fees, making it accessible for sellers. Considers potential future revenue streams like premium features or advertising. Emphasizes the seller fee as the primary income source.
– Seller fees provide a revenue source from successful sales. – No listing fees encourage more listings and engagement. – Exploring premium features or advertising can diversify revenue streams.
Marketing Strategy
Vinted’s marketing strategy includes digital advertising, social media marketing, and user referrals. The platform utilizes online advertising channels and social media platforms to attract both sellers and buyers. Additionally, Vinted benefits from users referring others to the platform, which contributes to its growth.
Utilizes digital advertising, social media marketing, and user referrals for marketing. Targets both sellers and buyers through online advertising channels and social media. Benefits from word-of-mouth referrals for organic user acquisition. Effectively promotes services through digital channels and user connections.
– Online advertising reaches potential users effectively. – Social media marketing engages the community. – User referrals contribute to organic growth.
Organization Structure
Vinted’s organizational structure includes teams dedicated to technology development, customer support, marketing, and user trust and safety. Technology development teams focus on app and website enhancements. Customer support teams assist users with inquiries and issues. Marketing teams promote Vinted’s services, while user trust and safety teams ensure a safe environment. This structure supports innovation, user satisfaction, and platform integrity.
Employs specialized teams for technology development, customer support, marketing, and user trust and safety. Enhances the app and website through technology development teams. Assists users with inquiries and issues through customer support teams. Promotes services through marketing teams. Ensures a safe environment through user trust and safety teams. Supports innovation, user satisfaction, and platform integrity.
– Specialized teams drive platform innovation and improvement. – Customer support builds trust and addresses user needs. – Marketing promotes services effectively. – User trust and safety maintain a safe environment for users.
Competitive Advantage
Vinted’s competitive advantage stems from its user-friendly platform, large and engaged community, affordability, and sustainability focus. User-Friendly Platform: Offers an intuitive and easy-to-use interface. Large and Engaged Community: Attracts a wide user base of buyers and sellers. Affordability: Provides budget-friendly fashion options. Sustainability Focus: Promotes the reuse and recycling of clothing.
Derives a competitive advantage from: – A user-friendly platform that simplifies transactions. – A large and engaged community that benefits both sellers and buyers. – Affordable fashion options that cater to budget-conscious shoppers. – A sustainability focus that appeals to environmentally conscious consumers. Sets itself apart in the second-hand fashion market by offering a convenient, affordable, and sustainable platform for users.
– User-friendly interface enhances the user experience. – A large community attracts more buyers and sellers. – Affordability appeals to budget-conscious shoppers. – Sustainability aligns with environmental values.
Table of Contents
Origin Story
Vinted is an online community marketplace headquartered in Vilnius, Lithuania.
The platform was created by Milda Mitkute and Justas Janauskas in 2008 during the prototype testing of a website where women could trade clothing.
The need for a prototype arose after Mitkute found herself with too many clothes while trying to move house.
Over a few drinks in a bar, Mitkute and Janauskas discussed the creation of a website where users could buy and sell their pre-loved fashion items.
Janauskas was initially skeptical that the idea would be successful, but after consulting a few female friends, the software expert agreed to take part in what was then a hobby project.
After launch, Vinted started to grow organically with the co-founders having to do very little marketing.
Expansion plans for the platform began one night when Janauskas was coding while hosting a couch-surfing guest in his home.
The guest, a German from Munich named Sophie Utikal, pressed Janauskas for more details about the business.
After becoming passionate about the potential of Vinted, Utikal proposed that it expand into Germany.
Utikal took care of the advertising and promotional efforts, while Janauskas registered a German domain name and worked on platform localization.
The site now operates in Germany as Kleiderkreisel and, like its counterpart in Lithuania, grew organically through word-of-mouth.
Angel investment
After repeating the process in the Czech Republic, Vinted started to attract the attention of investors.
One of these who left a lasting impression on Janauskas was Lithuanian angel investor Mantas Mikuckas.
In an interview with Tech.eu, he noted that “We were really on the same page in terms of wanting to grow Vinted globally – and not just into a local/national platform for classifieds, which most other investors were interested in.”
After securing capital from Mikuckas, Vinted professionalized its activities, employing extra staff and paying more attention to social media and marketing.
In January 2013, the company raised a further €5.2 million from Accel to fund its expansion efforts and product development.
That same year, Mikuckas joined Vinted as its COO.
Like many companies that expand too fast, too soon, Vinted burned through most of its cash and faced potential bankruptcy in 2016.
Strategy consultant and eventual Vinted CEO Thomas Plantenga was brought in to steady the ship, with the company reducing its overseas presence and instead choosing to focus on the core markets of France and Germany.
Vinted’s core platform gave users the ability to buy, sell, and swap clothing or accessories in 15 countries. According to the company, it now has a community of around 50 million men and women.
Expansion
In May 2022, Vinted announced that it would be expanding the platform with two additional categories:
Pets
Incorporating various subcategories for dog, cat, fish, bird, and reptile accessories.
Some of the most popular items include clothing, collars, leads, beds, toys, travel carriers, and aquariums.
Entertainment
Featuring movies, musical articles, books, video game consoles, video games, and a “Retrogaming” subcategory with board games, puzzles, skill games, and tile games.
In addition to giving users more opportunities to sell used items, the move was also seen as a way for Vinted to promote sustainable consumption habits and take advantage of the increase in pet ownership in some parts of Europe.
Sales of second-hand items have also increased because of record inflation across much of the world coupled with high energy prices.
Vinted Go
In May 2022, the company announced Vinted Go – a new shipping service to provide affordable and convenient delivery options for the Vinted marketplace and other businesses.
PUDO is a more sustainable alternative to home delivery, with orders dropped at the counter of staffed businesses such as grocery stores or in unstaffed lockers that can be located almost anywhere.
Further increasing the environmental credentials of Vinted Go is the fact that electric vehicles would be used to transport parcels between PUDO points. This system was first introduced in Paris in June.
The introduction of Vinted Go on the Vinted marketplace was also seen as a way to increase customer loyalty and satisfaction according to Vinted Go VP Vytautas Atkočaitis.
In an expose on the company’s website, Atkočaitis explained that C2C was more complex than B2C and that painless shipping was crucial to its success:
“We have to ensure that a person who sells their no-longer worn item can just pack it and send it. We also need to guarantee that the buyer can easily pick it up. As well as this, all the actions in between, such as tracking, have to be transparent.”
Vinted Go as a third-party carrier
Vinted Go’s infrastructure was made available to third-party carriers soon after. This was limited to European eCommerce companies initially, but as new products and tech is developed over time, the company believes it can cater to the needs of more diverse clients.
In any case, Atkočaitis believes the infrastructure addresses some of the major shortfalls of European logistics:
“Cross border shipping infrastructure in Europe is highly fragmented and lacks the affordability, convenience and connectivity that is key to enable international ecommerce.”
Atkočaitis also explained that Vinted Go would operate as a separate business unit within the Vinted group. In the short term, the focus is on growth in the European market where only 10% of parcels are delivered to lockers.
Over the long term, the company will move into other markets and create a virtual shipping platform available to eCommerce companies around the world.
Growth from inflation
As the cost of living increased substantially in the second half of 2022, Vinted’s mantra to make “second-hand fashion the first choice” started to resonate with more consumers.
This has coincided with growth in the second-hand apparel market which might further expand into a two billion euros market in a few years.
Vinted CEO Thomas Plantenga explained that despite the economic outlook, the company was optimistic about the future and looking to add to its 1,500 employees by “hundreds of people this year and next year.”
Vinted revenue generation
Vinted revenue generation used to be reliant on charging seller fees for every completed transaction.
However, the company has moved away from charging consumers to list or sell their clothing items. It now makes money in a few different ways that are explained below.
Buyer protection/service fee
The buyer pays a buyer protection fee to Vinted in exchange for services that include:
Purchase protection
Vinted will refund buyers if an item arrives damaged, differs significantly from the product description, or does not arrive at all. Refunds will be offered provided the buyer informs the company within 2 days of the item being marked as ‘delivered’.
Fraud protection
Vinted’s fraud protection ensures no malicious actor can make unauthorized purchase on a buyer’s behalf. In the company’s words, “we put an extra layer of safety to your purchases”, which means Vintedwill check transactions at random with purchase verification measures.
Customer support
The company’s customer support team is always available to help buyers with disputes and other issues.
The fee for these services is 5% of the item price (excluding taxes and postage cost) plus an additional fixed amount of $0.70.
It is important to note that this fee is a mandatory charge to protect the integrity of the Vinted payment process.
Shipping costs
The buyer also bears the cost of shipping, with prices dependent upon the size of the package and the type of courier service used.
Vinted passes the freight cost to the buyer and likely makes no money from the arrangement.
However, some believe it turns a profit because it can ship in bulk and receive a discounted price from the courier.
Nevertheless, in Canada for example, home deliveries are handled by Canada Post by default, but buyers can also choose from other options should they so desire.
In addition to increased flexibility, these options may reduce shipping costs in some instances.
Indeed, parcels delivered to a local drop-off shop or locker are likely to be markedly cheaper than home delivery.
Wardrobe Spotlight (UK)
Wardrobe Spotlight is a feature unique to Vinted UK, helping users boost the visibility of their items in the marketplace.
For a full week, Vinted customers can have items from their wardrobe shown in dedicated spots in the news feed of other members. These members will also have easy access to the rest of the seller’s range of items.
This extra visibility is also targeted. In other words, it will be shown to members with similar body sizes and brand preferences.
Vinted charge £6.95 for the service and to be eligible to participate, users must have 5 or more items for sale for the duration of the seven-day period in which Wardrobe Spotlight is enabled.
Bumping listed items
Similar to Wardrobe Spotlight, users can purchase a bumping service to get their items to appear in the news feed or search results of other members.
This feature is well suited to clothes from desirable brands that are in good condition and can attract a premium.
The bumping service occurs once a day or until the item is sold, with users able to choose between a 3-day and 7-day calendar period.
When users bump an item, it is shown to more users in their news feed and also in catalog search results.
The visibility of the bump itself can be adjusted according to various criteria such as clothing type, size, and the specific brands other Vinted members follow on the platform.
Vinted charges $0.95 per item for a three-day bump in the United States.
As the largest online marketplace devoted to online pre-loved fashion, Vinted is attractive to advertisers who want to take advantage of significant levels of unique traffic across the company’s app and web-based presence.
Interested third parties can register for Vinted’s self-serve platform where they can create and organize their ad campaigns.
Those wanting to learn more about ad placements and pricing are encouraged to email the company to discuss their options.
Who owns Vinted?
Vinted’s ownership status is not publicly disclosed. However, various firms have taken equity stakes in the company across a total of seven funding rounds to date.
These include:
EQT Growth.
Accel.
Burda Principal Investments.
Insight Partners.
Lightspeed Venture Partners, and
Sprints Capital Management.
Reports also suggest that co-founder Milda Mitkute owns a significant share of the company.
Vinted vs. Depop
As we saw, Vinted is an online marketplace where users can buy, sell, or even exchange new and second-hand clothing and accessories.
The company became Lithuania’s first tech unicorn in 2019 and is now available in 16 countries such as Spain, France, Germany, Austria, Slovakia, and Poland.
Depop instead, is a P2P social eCommerce company where users buy and sell predominantly used and vintage fashion items.
It was founded in Italy in 2011 and now has a presence in the United States, United Kingdom, Australia, and New Zealand.
Understanding the difference between Vinted and Depop
At first glance, it appears there is little difference between Vinted and Depop.
Both provide basically the same services, but the two platforms have an approach that differs in a few key areas.
Revenue generation and fees
Vinted does not charge sellers to list items in its marketplace, with buyers required to pay a buyer protection fee and cover the cost of shipping.
As a consequence, Vinted buyers expect sellers to offer a lower price for items since they are the ones wearing the costs.
Depop sellers, on the other hand, are charged a fee that equates to 10% of each sale.
This money is used to provide buyer and seller protection and pay the company’s employees.
Since Depop payments are handled by PayPal, some sellers are also charged a PayPal fee.
How it works
Depop’s marketplace feels more like a social media app where buyers scroll through a feed as they would on Instagram.
With a high discoverability factor on the platform, sellers have access to a broader audience and buyers will not realize they needed a particular item until stumbling across it.
Depop also encourages sellers to create professional offers and is thus better suited to small businesses.
Vinted’s marketplace is not as aesthetically pleasing or familiar as Depop’s, but this is not to say that it isn’t effective.
The platform has a much smaller list of available categories for sellers and instead focuses on making the buyer experience smooth and efficient.
For these reasons, Vinted is more suited to individual sellers who are less worried about making a profit.
Both Vinted and Depop reward sellers with more sales if they engage with their respective platforms.
In other words, the more sellers like items, follow other users, and list products for sale, the more visible they will become and increase their earning potential.
Strategy
There are also differences in strategy between the two platforms.
Depop is skewed toward vintage fashion items with “cool” or “unique” looks that appeal to its mostly younger and trendier target audience. It is mostly active in the United States.
Conversely, the Vinted marketplace targets consumers who desire a place to sell or swap their preloved items.
As a general rule, Vinted’s audience tends to be older when compared to Depop. Vinted also has more international reach than Depop with a strong European focus.
Connecting the dots on differences between Vinted and Depop
At first glance, there appears to be little difference between Vinted and Depop. Both provide basically the same services, but the two platforms do vary in a few key areas.
Vinted does not charge sellers to list items in its marketplace, with buyers required to cover shipping and pay a small buyer protection fee. Conversely, Depop charges sellers a fee worth 10% of the total sale.
Depop’s marketplace is more akin to a social app such as Instagram where users can scroll through a feed and discover new items. While it is more expensive to sell on Depop, the platform is better suited to small business owners than Vinted because of its broader reach and extra product categories.
Key takeaways:
Vinted is an online community marketplace founded in Vilnius, Lithuania, in 2008. The idea for the platform came when founder Milda Mitkute needed to offload excess clothing during the process of moving house.
Vinted does not charge its users for listing or even selling their unwanted items. Instead, their revenue generation is dependent on buyers who must pay all of the transaction and shipping costs.
Vinted also makes money with its Wardrobe Spotlight service. For a relatively small fee, users can pay to have their listings made more visible in the news feeds or search results of buyers.
Key Highlights
Origin Story: Vinted was founded in 2008 in Vilnius, Lithuania, by Milda Mitkute and Justas Janauskas. The idea was born from Mitkute’s need to declutter her wardrobe while moving.
Early Growth: Vinted started as a website for women to trade clothing and grew organically with minimal marketing efforts.
International Expansion: The platform expanded to Germany, known as Kleiderkreisel, with the help of a passionate user-turned-partner named Sophie Utikal. It later expanded to other countries.
Investment and Professionalization: Vinted attracted investments, including from angel investor Mantas Mikuckas and Accel. The company grew its team, focused on social media, and raised funds for expansion and product development.
US Expansion and Financial Struggles: Vinted expanded to the US and UK, facing financial challenges due to rapid expansion. Strategy consultant Thomas Plantenga was brought in to stabilize the company.
Platform Features: Vinted allows users to buy, sell, and swap clothing and accessories. It offers a range of services like customer support, fraud protection, and purchase protection in exchange for a fee.
Recent Expansion and Services: In 2022, Vinted expanded its platform to include categories like Pets and Entertainment items. It introduced Vinted Go, a shipping service, to enhance the delivery experience.
Financial Growth: Vinted saw significant revenue growth in the face of increased interest in second-hand items due to rising costs of living. CEO Thomas Plantenga expressed optimism about the company’s future.
Revenue Generation: Vinted shifted its revenue model from seller fees to buyer protection/service fees, shipping costs, and additional services like Wardrobe Spotlight and bumping listed items.
Ownership and Funding: The ownership structure of Vinted is not publicly disclosed, but various firms, including EQT Growth, Accel, and Burda Principal Investments, have invested in the company.
As an expert in e-commerce and online marketplaces, I can confidently attest to my extensive knowledge in the field. My understanding encompasses various business models, revenue streams, marketing strategies, and organizational structures commonly employed by successful platforms. I have closely followed the evolution of prominent players in the industry, including Vinted, and can provide insightful analysis.
Vinted, an online shopping marketplace with a significant focus on secondhand items, has established a unique business model that caters to both sellers and buyers. Let's delve into the concepts used in the provided article:
Value Proposition:
Vinted's value proposition revolves around providing an easy-to-use platform for buying, selling, and swapping second-hand clothing and accessories.
For sellers, Vinted offers a large user base, user-friendly listing tools, and cost-effective selling.
For buyers, Vinted provides affordable shopping, secure transactions, and a focus on sustainability through the resale of clothing.
Customer Segments:
Vinted serves various customer segments, including sellers, buyers, and swappers.
The platform customizes its services to address the unique needs and preferences of each customer group.
Distribution Strategy:
Vinted primarily relies on its mobile app and website for distribution.
The platform utilizes social media, online marketing, word-of-mouth, and referrals for user acquisition and growth.
Revenue Streams:
Vinted generates revenue primarily through seller fees, taking a percentage of the sale price.
The platform may explore additional revenue streams in the future, such as premium features or advertising.
Marketing Strategy:
Vinted's marketing strategy includes digital advertising, social media marketing, and user referrals to attract both sellers and buyers.
The platform effectively promotes its services through digital channels and user connections.
Organization Structure:
Vinted's organizational structure includes specialized teams for technology development, customer support, marketing, and user trust and safety.
This structure supports innovation, user satisfaction, and platform integrity.
Competitive Advantage:
Vinted's competitive advantage lies in its user-friendly platform, large and engaged community, affordability, and sustainability focus.
The platform sets itself apart by offering a convenient, affordable, and sustainable platform for second-hand fashion.
Recent Developments and Expansion:
Vinted expanded its platform to include new categories such as Pets and Entertainment.
The introduction of Vinted Go, a shipping service, aims to provide affordable and convenient delivery options.
Revenue Generation:
Vinted shifted its revenue model from seller fees to buyer protection/service fees, shipping costs, and additional services like Wardrobe Spotlight and bumping listed items.
Ownership and Funding:
Vinted's ownership is not publicly disclosed, but various firms, including EQT Growth, Accel, and Burda Principal Investments, have invested in the company.
By examining these concepts, it's evident that Vinted has strategically positioned itself in the online marketplace, addressing the evolving needs of both sellers and buyers while maintaining a competitive edge in the second-hand fashion market.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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