Olx

Business model of OLX

1. OLX Business Model Presented by :-Group 11

2. Introduction Founded in 2006 by Fabrice Grinda and Alec Oxenford , the online marketplace OLX has its roots in Argentina functions in over 40 countries, of which stronghold are in countries like India, Pakistan, Brazil, Portugal, Poland, Ukraine, Nigeria, Philippines, and Kenya  online classifieds website

3. How OLX works? OLX works like just another classifieds portal – it has a parallel system for customers running side by side People who wish to sell any goods can upload pictures of their goods, along with a title and description of the same and the expected sales price of the commodity People who wish to buy goods may browse through the several alternatives, contact the seller, negotiate with them one-to-one and then purchase the item OLX connects the two online through a classifieds portal. The conversation, bargaining, advances, and transactions remain between the buyer and seller only

4. Business Model of OLX The  Business model of OLX is actually scale-dependent The website acts as a classifieds portal where customers can buy and sell goods OLX spends large amounts of money in order to garner more and more user traffic and greater frequency and number of listings The high traffic is put to use to earn revenue by monetizing the number of clicks and searches

5. How does OLX make money Prime source of revenue for OLX is through 1.Google Adsense Monetizing, 2.Google Custom Search Engine, 3.Sponsored Links 4.and Sponsored Listings.

6. Google Adsense Monetization Adsense  is an advertisement placement service by Google which lets publishers like OLX to serve media advertisements. It works in juxtaposition with the OLX website, and its contents are displayed on the webpage itself. The number of Adsense units varies on different pages of the website. OLX garners high user traffic through online and TV brand advertisements. OLX monetizes this high customer inflow. It does this on the basis of Cost per Click (CPC), Cost per 1000 Impressions (CPM) and Cost per View for video ads on its home page as well as that on individual product pages till the seller is finally contacted and transacted with.

7. Google Custom search Engine The OLX page has a search bar for customers to look up products. When they perform any search, the results obtained are an optimization with the  Google custom search engine monetization of Adsense , wherein the first two-three results are from Google.

8. Featured listing   for example, if a seller has posted a classifieds listing of a refrigerator he wishes to sell. After some time, the product is bound to go further below more recent listings, and would now appear on the second or third page and so on. To make it still appear on the top, the seller can pay to OLX to ‘feature’ his listing on the top of the site. Featured listing  is a source of profit to both the seller as well as OLX. He might earn more impressions too, which are also dual sources of income for OLX.

9. Future opportunities The biggest power spread of OLX lies in India, Brazil, and Poland, though these three combined make up for just half its profits. The main strategy is working on this online mega-mart in the less developed or developing countries, considering the vast ocean of opportunities here. OLX doesn't wish to contend with the stalwarts of the US or UK and earn any competitors on the way.