Naspers’ general classifieds site OLX Kenya has reduced advert prices for its mobile and tablet categories by 75% in a move to attract and retain more sellers seeking high visibility on their platform with the paid adverts.
Posting your mobile phone or tablet on OLX will now cost you a minimum of ksh. 500 down from 2,000 for a seven-day visibility period while 30 day is now ksh. 2,000 from ksh 6000 and 60-day visibility will now cost ksh. 4,000 down from ksh. 10,000. The changes in price will now have users enjoy more visibility on OLX at lower costs hoping to get even more sellers selling their items faster.
“Following a consumer feedback we sampled among our mobile and tablet sellers, we have now slashed prices in the high traffic mobile category to cater to our users’ needs of wanting a high visibility at affordable costs. We also found out that users also want high profit margins for items they are selling and the only way to give them this value is to reduce paid advert costs while giving them same amount of visibility.” OLX country manager Mr. Peter Ndiang’ui said.
Recently, OLX launched its Sell it for Me service in Kenya to allow car sellers have access to verified champs to handle the entire selling process on behalf of a vehicle seller. This process is expected to help reduce the turnaround time for selling a car online. In January this year, OLX said it had surpassed the 1 million inventory mark with over 100,000 users registered to sell on the site with electronics, followed by vehicles, mobile phones and real estate.
“Electronics is among the most sold items on OLX with 330,000 items listed for sale the past year only. This is attributed to small and medium sized businesses who use this platform to sell their products,” said the firm in a statement early this year. OLX also saw Kenyans sell unique items that would never have been sold on any other online platform in Kenya in the past year according to OLX.
Last year, OLX introduced the paid advert options to allow users wishing to have more visibility pay a premium price and have their items sell faster. According to OLX, paid advert options gives sellers more views than a normal advert increasing their chances of selling. These price cut could mean two things. The prices led to reduced mobile phone and tablet category inventory compared to its competition and cutting prices is expected to attract more sellers hence more revenues for OLX Kenya whose principle service is to connect Buyers and Sellers.
There is also a possibility that the paid service is hardly used making it useless.
The online platform has been operational in Kenya since August 2012 when it started operations with just 500 products being listed per ‘’day. It has since then grown exponentially. The success of the ‘OLX Sell it Show’ has OLX receiving almost 9,000 listings of items to be sold on a daily basis. OLX is now one of the most popular local online marketplaces in Kenya receiving over 150,000 visitors on a daily basis.