If you’re looking to get rid of some old furniture or knickknacks, Letgo could be a viable option for you to sell goods quickly and easily within your local area.
But how does a free app like Letgo make money? Read more below to find out!
How Do They Make Money?
Letgo makes money through:
- In-app Purchases (to ‘Bump’ your listed items)
- Venture Capital
‘Bump’ is a premium feature which puts the listed item in the spotlight to gain more attention from potential buyers. The feature costs $1.99 (per listing) for 24 hours.
Letgo raised $100 million in 2015.
Then, after the merger with the app Wallapop in 2016, Letgo raised an additional $100 million.
By 2017, Letgo had raised a total of $375 million.
What is Letgo?
The app uses instant chat to facilitate communication between buyers and sellers.
How Does Letgo Work?
In order to start using Letgo, just follow these quick and easy steps:
- Download the Letgo app to your mobile device from the app store
- Create a Letgo account
- Start selling or buying!
Letgo claims it takes mere seconds to post an item for sale. All you need is a picture of the item you want to sell, and the application.
Their image recognition technology will automatically create a title and select the appropriate category for your listing. The listings are sorted based on relevance and distance from the user – and best of all, LetGo is free to use for every category.
If you are a buyer, you are able to filter your searches based on category, distance, price, and posting date.
The platform also lets buyers and sellers connect via chat to inquire more about items and/or determine pick-up date and location.
Watch This Video To Learn More About How Letgo Works
What Can’t You Sell On Letgo?
According to the Letgo Community Guidelines, here is a list of prohibited items:
- Adult Toys
- Alcoholic products
- E-cigarettes and e-juice
- Illegal Drugs
- Prescription drugs or medical devices
- Over-the-counter drugs and supplements
- Live animals (including coral)
- Skin and bones from endangered or protected species
- Catering services
- Party trays of perishable food
- Homemade jams and jellies
- Baby food and formula
- Financial Services (tax filing and preparation, insurance, loans, and credit scoring)
- Legal Services (debt collection, will preparation, legal advice)
- Medical Services (chiropractic care, cosmetic services like Botox)
- Escort Services, companionship, matchmaking
- Massage services
- Services which are themselves illegal (unlocking phones and other hardware) or may include illegal activity
- Services related to alcohol or drugs
- Services involving guns or other weapons
- Affiliate or pyramid schemes
- Job postings
- Services making extreme or unrealistic promises (“Lose 50 lbs in a week!”, “Cure cancer!”)
- Repeated listings of the same item
- Mass messages sent without the intent of buying or selling items on letgo
- All firearms, accessories and ammunition
- Airsoft, BB, or other novelty guns that do not clearly display an orange safety tip
- Burglary Tools
- Pesticides, tear gas, and other hazardous chemicals or controlled substances
- Used cosmetics
- Lottery tickets and other sweepstakes or gambling
- Items obtained through government assistance
- Bodily fluids such as breast milk
- Sale of currency as a product (cryptocurrencies, euros, dollars, etc.). Collectibles are okay.
Is Letgo Free?
The official statement from Letgo is, “Yes! Letgo is 100% free and doesn’t charge sellers a fee for posting their listings. We don’t take a percentage of our users’ sales either. Letgo offers in-app purchases to allow you to feature your listing. It’s an optional feature that we added to help users who want to draw extra attention to their listings.”
Is Letgo Safe?
Letgo as a mobile app and company is reputable and has millions of users, and is safe to use on your mobile device.
However…Buyers and sellers should both be cautious when completing any transaction for goods and services sold online. Letgo does not offer any payment processing options and expects payments to be handled by the buyer and the seller. While most transactions will not pose any issue for either party, there are people out there waiting for the opportunity to scam others.
Letgo recommends that all payments be made using cash in-person or completing the transaction through PayPal. They suggest against checks or wire transfers.
Tips and Reminders For Selling/ Buying Items Online:
- If a deal seems too good to be true – it probably is.
- Never give out your personal information.
- When meeting in-person, choose a public place such as a coffee shop, bank, or your local police station’s parking lot.
- Don’t transfer funds in advance of the product pick-up.
- If you experience fraudulent activity or feel that you were scammed – report the buyer/seller to Letgo and to your local law enforcement.