How does Olx make money?

How does Olx make money
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Olx is one of the trusted online classifieds platforms used by people worldwide. It works as an intermediary between seller and buyer, who are intended to sell and buy goods. Now, the question arises that how does Olx make money by being a free online marketplace for interested individuals.

From this article, we will get to know about the Olx business model and the revenue model that would add a spotlight over its money-making strategy.

About: OLX

Just like the classifieds advertisements that are listed in the newspapers, Olx provides an online classified platform that allows a seller to depict all the description about the goods that he is willing to sell and can also share multiple pictures of the desired item with its selling price.

Whereas the interested buyer can show his interest by viewing the goods and can ask for related information about the goods and can bid his desired price to the seller. So, Olx works as a fast and convenient two way communicating platform between the two parties who are willing to exchange.

Also, it brings comfort for the traders who are in need of a certified and easy to use the network for selling their goods or services. Using this online classified platform is as easy as creating an e-mail account as one has to share a few details and verify with its mobile number for security reasons and then you are ready to go with your desired product listing.

It also offers a user to use its online network from its website or by downloading its online application that provides ample features like start selling goods or services, views the ads uploaded along with validating the number of view and likes of the interested parties, do an online chat with aspiring buyers and choose the best price giver.

Moving to its initiation, Olx was started in the year 2006 by Fabrice Grinda and Alec Oxenford with an aim of shaping the way of trade between the buyers and sellers. Soon, it becomes a renowned brand for more than 30 countries for helping people finding household goods, automobiles, properties, jobs, and various needful services.

Now, people throughout the world are using this free service platform for quenching their needs for various commodities and services.

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Olx business model

The Olx business model is a two-way online aggregator platform that providers an opportunity to search for a valid seller and buyer without looking for individuals in the offline markets. It does not charge any fee for listing activities, unlike the offline advertisers that charge a heavy cost for a small rectangular classified. This adds a great opportunity for the goods and service seekers and sellers.

Apart from the general listing options, Olx provides business listings for businessmen. In business listings, one can choose packages as per the number of advertisements they wanted to show to their buyers. The price range for their business packages ranges from Rs. 600 to Rs. 5000 (approx), in which the sellers are offered a large number of ad listing options.

Example: You own a grocery store and with the help of Olx business listing, you can list all your offerings in one go with the help of a business package while you will get only limited ad listing options in a general listing option.

Apart from getting a convenient service, people may face a fraud being a seller or buyer because there are many fraudsters who use Olx and attract innocent customers or sellers from their false claims or prices. And eventually, loot them with their sweet communication skills. So, Olx tries its hard to protect the interest of their customers by informing them about a buyer or seller who they found suspicious but still one must beware of those fraudsters.

How does olx make money?

Now, this brings us to our main topic i.e how does Olx make money? The answer is very crisp and clear as its business model does not involve a direct fee charge from buyers but earn from other alternatives:

Featured link/ads- The business listing is one of the options that is introduced by Olx for generating revenue from the businessmen, who are willing to showcase different offerings. They provide various packages as per the price range set by them. You just have to add your category for goods & services, choose a subcategory, and mark your location, then it will automatically redirect you to its charges with listed offers that they are offering to their customers.

Adsense- Adsense is one of the revenue-generating platforms that helps them to monetize their website and application. They choose a good ad placement method so that the visitors may click over their listed ads and increase their revenue generation. It is a good revenue-generating option for them because they are getting millions of visitors as its users on an everyday basis.

Sponsored advertisements- Olx provides a space for sponsored advertisements, where the companies that wanted to promote their brand name can contact them for advertisement. In return for their brand promotion, the online classified platform charge a specified amount from the brands based on their ad packages.


From the above reading, we got a complete insight into Olx business model and its free & paid advertisement packages. Apart from Olx business model, the content depicts a good description of how does Olx make money?

Thank you for reading, we welcome your doubts and queries in form of comments.

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