If you are wondering how this kind of simple boot sale or classifieds systems are running and making good profit, this blog is going to help you understand. Before talking about how it is possible, let us see how these online classifieds were the most attractive business who even made it successful at cities and countries where the ratio of internet penetration is very low.
Beginning of online classifieds system
Later in 1990s the newspapers were the only biggest medium to reach the most number of people and the classifieds systems were introduced in USA during that period as Traditional Offline Classifieds. Internet was not a common one during that period, but entrepreneur like Mr. Craig Newmark foresaw the future of classifieds system would soon be emerged the traditional offline classifieds to online classifieds as the speed of internet knowledge grows.
In 1995s Mr. Craig started something like a emailing group distribution system where people register their email address to get the listing from their friends and others around San Francisco Bay area. Mr. Craig was surprised to see the increasing numbers of registers every day. Later in 1996s, the same system was modified into web based platform and they called it Craigslist. This duration can be marked as the beginning of online classifieds system.
SmartPhone becomes the key factor for making profit from classifieds
Smartphones becomes challenging for all the business model, classified system is not an exceptional one too. In fact, smartphone fits 100% perfect for classifieds system. Smartphones makes even easier for buyers and sellers to find and sell any items within their locations and it allows quicker communications too.
The list of successful companies who adopted the mobile app based online classifieds system is still counting which starts from carousell, shpock, varagesale, letgo, wallapop, 5miles app and much more. Their mobile applications for iOS and Android devices plays the important role on their success. In fact, some of them don’t have any operations in the website and they just use website part as a simple landing page.
These apps are become more popular and reached a big volume of people and listings in a shorter duration because it’s easy access. The apps allow you to post any item for sale in seconds by taking pictures from the mobile phone and post it. Those apps has excellent features which attracted the classifieds users to move from traditional classifieds system to the trending mobile based classifieds.
What are the important features that any online classifieds app should have?
- Location based listing
- Easy sort options
- Quick share options with social media
- Integrated chat system
- Easy listing option
- Make an offer or bidding option
- Give a away option
- Seller locations
- Exchange items
- Social Login and Sharing
- Instant buy options
- Push Notification
How does classifieds system can drive profits?
As we have studied various earnings options from online classifieds website and app, lets do a quick calculation of how much money one can earn in a month. Lets create the list of factors that earns money for administrator.
- Featured listings
- Urgent Listings
- Premium membership plan
- AdMob or any mobile app ads
- Google Adsense integration with websites
Considering these factors, on an average if the website receives 10,000 users in a month,
- Nearly 80% of the users will try to post ads for free which means 8,000 users.
- Around 10% of users may try to mark their listing as “Featured”
- Around 5% of users may try to mark their listing as “Urgent”
- Nearly around 2% users may want to go with the premium membership
With the above stats, when we consider the following prices for different options,
- 5$ for Featured listings brings 400$ USD
- 3$ for “Urgent” listings brings 120$ USD
- 8$ for premium members may bring 1280$
- With around 5000 impression of ads you can earn minimum 250$ USD from the apps and website
Based on the above calculation the complete system can bring around $2050 USD in month and profit may go higher when your website becomes more popular.
How much you can spend for online classifieds system project?
As per the market standards even if the team located in India or any other countries who offers competitive prices for the development, for the web and mobile apps development the charges will be minimum $12K USD to $15K USD. Yes, it involves modules that are complicated and carefully developed such integrated chat systems. Any flaw in the chat system may kill the load of any server and system may go down.
We are the team of AppKodes and have developed an excellent system similar to letgo, wallapop mobile application. We have developed the classifieds system which allows complete operations on the website and also in the mobile apps. The website is completely responsive and can fit any device browsers.
The cost of the online classifieds system starts from $499 USD if you wanna start the website first. If someone want to start the business with web and mobile apps, the cost is $1999 USD. Please write to us or read more details about our product called “JoySale”.