How does OfferUp generate revenue?

OfferUp generates revenue through various channels, primarily by charging fees for certain transactions and offering premium services. The platform allows users to buy and sell items locally, and it monetizes this activity in several ways. To begin with, OfferUp charges sellers a fee for transactions that occur through its platform, particularly for items sold at a higher price point. This fee structure incentivizes the use of the app for larger sales while providing a secure transaction environment. Additionally, OfferUp offers promotional features, such as ""bump"" options, which allow sellers to increase the visibility of their listings for a fee. This service helps sellers reach a broader audience, thereby enhancing their chances of making a sale. Moreover, OfferUp has introduced a delivery service in partnership with third-party logistics companies, which generates additional revenue. By facilitating shipping for items sold through the app, OfferUp not only enhances user convenience but also earns a commission on these transactions. In summary, OfferUp's revenue model is multifaceted, relying on transaction fees, promotional services, and shipping partnerships to create a sustainable income stream while enhancing the user experience on its platform.