 OfferUp Overview:

OfferUp is a leading online marketplace that connects buyers and sellers to facilitate local buying
and selling of various products and services. Founded in 2011, the company has established itself
as a trusted platform for individuals and businesses to connect and transact in a convenient and
secure manner. With a user-friendly interface and a focus on local communities, OfferUp has
revolutionized the way people buy and sell goods and has become a prominent player in the e-
commerce industry.
Business model:
Seller fees
When a seller sells an item that needs to be shipped, OfferUp collects a minimum fee of $1.99 or
12.9% of the sales price.
The company has a partnership with the U.S. Postal Service, but it also applies a service or
shipping fee depending on which state the product is being shipped.
As noted earlier, the company prefers the transaction to be conducted in person.
Promoted listings
Offerup gives sellers the option to promote their listing via the Promote and Promote Plus
features.
These features allow the seller to have their product shown in the top 50 listings in their area.
For those who want to go straight to the top, OfferUp offers a so-called “Bump” service.
For sellers who want a longer-term option, Promote Plus is offered for $19.99/month.
Verified Dealer Program
OfferUp has also taken advantage of the shift toward selling used cars online.
The OfferUp Verified Dealer Program allows car dealerships to sell on the platform using AI-
powered top lead indicators, automatic DMS importation, and a click-to-call button.

Pricing for this service is based on the size of the car dealership and the number of features it
wants to utilize.OfferUp verifies a profile through a driver's license and phone number, unlike
Craigslist. You can also sign up on the app using your Facebook account too. Verification is
usually completed the same day at which time a badge is displayed on your profile showing the
account has been verified.
While verification isn't a requirement, it's a great feature because you can choose to do business
only with verified accounts. This feature makes using the app feel safer and more secure.
OfferUp: Anonymity
The main advantage of using OfferUp as a seller is not having to publicly disclose your name,
email, or phone number in your ad. Sales transactions and communication with the buyer are
done anonymously, similar to meeting someone on a dating app.
OfferUp: Buyer Ratings
The seller can rate the buyer. The rating is then displayed in their profile. The rating comes in
handy when deciding whether or not to sell your merchandise to someone. I only accepted offers
from people who had a verified profile and a positive rating.
OfferUp: Posting Ads
Creating and posting an ad on the app is fast and usually takes less than two minutes on your
phone. Simply snap a picture of the items you're selling, upload them to the app, and write a brief
description along with your sale price. When someone makes an offer on your items for sale
you'll receive an instant notification with a "cha-ching" cash register sound effect, which I have
to say is quite exciting.

2. Market Overview:
2.1 Economic Growth: Vietnam is experiencing robust economic growth, with a GDP growth
rate of 6.8% in 2021. This growth is fueled by factors such as rising foreign direct investment,
increasing exports, and a growing middle class.
2.2 Urbanization: Vietnam is undergoing rapid urbanization, with a significant portion of the
population residing in urban areas. Urban dwellers are more likely to seek convenient solutions
for buying and selling used items within their local communities.
2.3 E-commerce Growth: The e-commerce sector in Vietnam has witnessed significant growth in
recent years, driven by increased internet penetration, smartphone adoption, and a shift towards
online shopping. The market size is projected to reach USD 52 billion by 2025, providing ample
opportunities for online marketplaces like OfferUp.
b. Local Online Marketplaces: Vietnam already has established online marketplaces, such as
Shopee and Tiki, which dominate the market. However, there is room for competition, especially
in the localized marketplace segment, where OfferUp's USP can differentiate itself.
c. Localized Commerce Culture: Vietnamese consumers have a strong preference for local
commerce, with a focus on buying and selling goods within their communities. OfferUp's hyper-
local approach aligns well with this cultural preference.
The Vietnamese online marketplace is growing rapidly. The number of online shoppers in
Vietnam is expected to reach 52 million by 2025.
3. Consumer Analysis:
3.1 Rising Middle Class: Vietnam's middle class is expanding, leading to increased disposable
incomes and a higher propensity to participate in the secondhand economy. The middle class
seeks value for money and is willing to buy used goods that are in good condition.
3.2 Environmental Consciousness: There is a growing awareness and concern for the
environment among Vietnamese consumers. Buying and selling used items aligns with
sustainable consumption practices, making OfferUp an attractive option.
3.3 Tech-Savvy Population: Vietnam has a tech-savvy population, with a high number of
smartphone users and internet penetration. Mobile devices are the primary means of accessing
the internet, making OfferUp's mobile app easily accessible to the target market.

4. Competitive Landscape:
4.3 Cho Tot: Cho Tot is a Vietnamese online classifieds platform that enables users to sell and
buy a wide range of used items. It has established a significant presence in the local market.
4.2 Facebook Group: Facebook Marketplace is a popular platform for buying and selling used
goods within local communities. It benefits from Facebook's extensive user base and social
networking capabilities.
4.1 Shopee: Shopee is a leading e-commerce platform in Southeast Asia and has a strong
presence in Vietnam. It allows users to buy and sell various products, including used items.
4.4 Piktina: Old clothes
5. Unique Selling Proposition (USP) for OfferUp:
5.1 Local Community Focus: OfferUp's emphasis on connecting buyers and sellers within local
communities sets it apart from larger e-commerce platforms. OfferUp encourages users to build
relationships with each other, which can help to create a more positive and enjoyable selling and
buying experience. For example, users can follow each other, leave comments on each other's
listings, and give each other ratings
5.2 User-Friendly Mobile App: OfferUp offers a user-friendly mobile app that enables easy
listing and browsing of used items, providing a convenient and intuitive user experience. The
app's features include image uploading, in-app messaging, and location-based search.
5.3 Secure Transactions: OfferUp provides secure transactions through in-app messaging and
buyer/seller ratings. These features help foster trust among users, mitigating concerns about
fraud or scams.
Reviews: Buyers can read reviews of sellers before making a purchase.
Verified accounts: Sellers can verify their accounts with OfferUp, which helps to ensure that
they are who they say they are.
Safe payments: Buyers can pay for items using OfferUp's Safe Payments system, which protects
them from fraud..
Large inventory: OfferUp has a large inventory of items for sale, including everything from
furniture and electronics to cars and boats.
Wide reach: OfferUp is available in over 100 countries, which gives sellers the opportunity to
reach a global audience.
Free to use: OfferUp is free to use for both buyers and sellers, which makes it a more affordable
option than some other online marketplaces.
6. Market Size and Growth Potential:
6.1 Urban Population: Approximately 41.7% of Vietnam's total population resides in urban areas,
providing a significant addressable market for OfferUp. The concentration of urban dwellers
facilitates localized transactions and community engagement.
6.2 Disposable Income: Rising disposable incomes in Vietnam indicate the potential for
consumers to participate in the secondhand economy and buy used goods. The increased
purchasing power allows for a larger market for OfferUp's offerings.
6.3 Addressable Market: Vietnam's gig economy, including online marketplaces, is projected to
reach $20 billion by 2025. OfferUp can tap into this market by offering a localized platform for
buying and selling used items.
Market Size: The Vietnamese online commerce market is estimated to be worth $10.2 billion in
2021. This market is growing rapidly, and it is expected to reach $20.4 billion by 2025. A study
by Google and Temasek found that the Vietnamese e-commerce market is expected to grow at a
compound annual growth rate (CAGR) of 32% from 2020 to 2025.

Vietnamese online commerce market size

Growth Potential: OfferUp has the potential to capture a significant share of the Vietnamese
online commerce market. The company has a strong brand reputation and a user-friendly
platform. OfferUp could also benefit from the increasing popularity of smartphones and mobile
internet in Vietnam.

Vietnamese online commerce market growth potential

According to a report by Statista, the number of internet users in Vietnam is expected to reach
75.4 million by 2025.
number of internet users in Vietnam
The report also states that the number of smartphone users in Vietnam is expected to reach 64.7
million by 2025.
the market size for OfferUp in Vietnam could be worth $2-3 billion by 2025. This
represents a significant growth opportunity for the company. This is based on the assumption
that OfferUp will be able to capture a 10-20% share of the Vietnamese online commerce market.
Vietnamese people need platform like OfferUp. The country has a large and growing population
of young people who are active online. These people are looking for convenient and affordable
ways to buy and sell goods. OfferUp can provide them with a safe and secure platform to do so.
In addition, the Vietnamese economy is growing rapidly. This is creating a growing demand for
used goods. OfferUp can help to meet this demand by providing a platform for people to sell
their used goods to others.