OLX takes on car bazaars with online portal
In efforts to boost revenues, online retail site OLX has rolled out a new service to its users that will handle the entire selling process on behalf of vehicle sellers.
The new service dubbed “sell it for me” will help traders transact safely and conveniently on the online OLX platform.
OLX country manager Peter Ndiang`ui said on Tuesday interested sellers would be required to pay an agreement fee of Sh2,000 to have the firm sell their cars on their behalf.
Once a successful trade is made, OLX will then make four percent commission on the value of the vehicle sold.
Mr Ndiang`ui said over 100,000 cars are traded annually with at least 40 percent finding their way on OLX, creating an opportunity for the firm to expand its portfolio.
“Introduction of these two items direct payments to OLX and OLX champs to handle selling transactions, are a definite value addition to our users who are always seeking safety and convenience when trading online. People should also note that those wishing to continue with a hands off buying and selling on our platform, are still free to do so,” he said.
Money from transaction will be held in an escrow account and transferred once the sale is complete.
OLX will handle the entire selling process from posting the advert to sourcing a buyer, negotiating and finally closing the deal.
The move is also expected to make transactions on the site more secure.
“We have been able to handle about 10 transactions just about two weeks since we launched. We have had about 100 people instead. So they paid transaction fees within two weeks. I think its continuing to grow. We have not done any mark on it. We have just put in on our platform,” Mr Ndiang`ui said.
In 2016, OLX introduced paid advertisements for sellers enabling the firm make revenue after previously offering free services.
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