Olx looking to Monetize Platform with Olx Shops

OLX Android App

OLX Android App

Olx is probably the most popular ecommerce platform thanks to spirited ad campaigns in Kenya that have propelled it to that position. The platform represents a growing eCommerce ecosystem in the country which last year accounted for nearly 16% of internet usage. Olx has been keen on alleviating fraud from its platform in a bid to boost user trust, a problem the E-commerce platform has grappled with the past. Firstly, a deal signed last year between the platform and courier service G4S allowed for faster delivery of goods bought via the platform. This works by the buyer and seller agreeing to use G4S, and the seller taking the item to the nearest G4S. The item is then sent to the buyer, who upon receipt and opting to make the purchase, sends the money to the seller via G4S.

One interesting question by most consumers was how exactly the platform makes money seeing as the platform allows users to post their items for free and does not charge a commission on sales or charge users of the platform  for posting their ads.  A recent move seems to point towards monetizing with platform allowing merchants to create shops. Dubbed Olx Shops, merchants will then post their goods under their shops. This will in turn make it easy for merchants to brand their goods while at the same time  improving customer loyalty. Olx will likely charge the merchants a fee for the shops.


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