OLX introduces paid ads for businesses
E-commerce firm OLX Kenya has introduced paid up listings for retailers looking to improve sales.
This comes as the firm moves to boost revenue income as more buyers and sellers use the trading site.
OLX Kenya Country Manager Peter Ndiangui said through the service, advertises will be given priority on the site enabling buyers to have top spot on the website.
“At some point we have to ensure the value we are creating on the platform for both buyers and sellers at least t gets paid for and one way to do that is to ensure that those who want to pay can do so, so that so their advertisements are always at the top of the platform,” Mr Ndiangui said.
Olx, which has operated in Kenya for four years, is targeting car sellers, supermarkets and large retailers.
Olx has increasingly been segmenting its platform crating segments for those in the construction industry, agriculture and even car dealers.
Advertises will part with between Sh3,000 and Sh5,000 to have the listings at the top of the page for between three and seven days.
OLX has largely relied on advertising revenue to fund its operations with the new paid up services expected to drive the next phase for growth.
The service was introduced last week, with the firm raking in an estimated Sh300,000 in the first day.
Mr Ndiangui however said individual sellers would continue to enjoy free listings.
“The user base varies but obviously the majority of users are the consumer people who are trying to sell individual items. That is the most important user base for us because its only when we drive that sort of user base that we are able to make a difference,” he said.
OLX has roughly 3,000 individual sellers listing on the site daily.
This is split down to 20 percent of businesses and 80 percent being the consumers selling one off items.
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