While Airbnb & Uber are believing that Letgo has empowered its users with this simplified business model. Let’s look into the business model canvas of Letgo for taking the clear view.
- Users and buy and sell used goods
- Chat with each other
- Featured listing feature for quick selling purpose
- Assistance through the website
- Self -taught
- Sell old goods
- Buy old goods
- Chat in the platform
- Negotiate in the platform
- Buyer should pay the seller offline
- Revenue from ads
- Revenue from bump ads
Unlike other online classifieds platforms, Letgo has made everything else will fall in its place without complicating the structure.
A great lesson from Letgo is that putting up an ad should be not be complicated. Letgo redefined the digital ads platform with its image recognition. All a user need to do is to upload an image and the AI recognizes the product and tags it under the relevant category.
This technique was that relevant and many sellers claimed that they were able to attract the most number of genuine buyers.
This made Letgo remain as one of the very few apps that use AI to help serve its users.
Another warm gesture from Letgo is its chat feature. This feature was that comfortable that it made the app very transparent, causing a big time for Letgo with an average of 9 million messages every day.
For used goods worth billions, Letgo became the most user-friendly market. Not anymore.
The real challenge for Letgo at the moment is tackling the social networking giant that is introducing a new feature where its users can buy and sell products through socializing.
There is no fact that Facebook is having more active users than any other apps. And the concept of introducing marketplace is a hit, a minimal hit to make it sound more general.
Letgo has managed to raise its number of users than craigslist and sustained its reputation through the traditional marketing practice.
What Facebook is doing is the reverse marketing tactics which are GREAT. Let’s understand what is the marketing cycle and then we‘ll take this road.
While Letgo took the long road and scrapped the efforts of other classifieds platforms, Facebook did it reversely. Or to be honest, Facebook already knew that the marketplace will nail the shopping concept. And it was right. By knowing or knowingly the Facebook used the reverse marketing concept.
The point that Facebook has highlights like groups and communities making the high road eternally so painful for how does Letgo will sustain this market. And it’s groundless to say that they also don’t need to bother about their investments.
While this was the major challenges for Letgo, it also happened for it to meet its soul competitors. Popularly was known as Letgo clone or online classified businesses like Letgo. These type of companies did not imitate Letgo but they were inspired and established their online classified business using Letgo clones that are available in the market. Though Letgo clones purpose is not to replicate Letgo but to provide pathways for organizations that can use these clones to simplify the procedure.
While talking about the Letgo Clone will be a vast subject which we don’t want to do for now.
Do you know what stood as Letgo’s backbone?
It was monotony & innovation that won the campaign for Letgo against counterparts. And with challenges like these Letgo can overcome this too.
See the pattern?
What do you think?
My general opinion is: If you’re willing to create a classified business you should always research your competitors. This process is not something you do in the beginning or at the end. This must be an ongoing process, where you can analyze more about your company. This will also helpful while creating a unique selling point for your business.
Please share it with us.