Vinted earns money from buyer protection fees instead of charging seller commissions. The secondhand clothing marketplace has grown to 105 million users in more than 20 countries. Their innovative e-commerce model moves costs from sellers to buyers.
The company’s business model is different than competitors like Depop and Poshmark because sellers keep all their earnings. Buyers pay a protection fee that includes a fixed amount (30p to 80p) and a variable fee ranging from 3% to 8% of the item’s price. The platform also offers optional paid features such as “Wardrobe Spotlight” promotion at £6.95 per week to boost item visibility.
Since its 2008 launch in Lithuania, Vinted’s growth has been remarkable with a current valuation near £4.5 billion. The platform’s revenue reached £130 million in 2019, and its gross transaction volume now stands at approximately €1.3 billion. This soaring win comes from their buyer-funded strategy that helps sellers maximize profits while ensuring buyer protection.
Let’s get into Vinted’s revenue model, break down its income streams, and see how their unique approach sets them apart in the secondhand marketplace industry.
How does Vinted make money?
Vinted has a unique way of making money without charging sellers any commission fees. The platform makes its revenue through three main channels: fees for buyer protection, optional promotional features that sellers can use, and advertising from other companies.
Buyer protection fees from buyers
Buyer protection fees are the life-blood of Vinted’s money-making strategy. Instead of taking a cut from sellers, buyers pay a required fee on everything they purchase.
Here’s how the fee works:
- You pay USD 0.70 plus 5% of what the item costs for regular purchases
- The platform uses different rates for pricier items: USD 0.70 for items under $10, USD 1.00 for items between $10-$25, USD 2.00 for items between $25-$50, and 5% for items over $50
These fees cover everything from processing payments to stopping fraud and solving disputes. So if something arrives damaged or doesn’t match what was advertised, buyers can get all their money back. While buyers pay extra, this approach works well because sellers keep their full asking price.
Optional paid features for sellers
Listing items on Vinted costs nothing, but sellers can pay for tools to help their items sell better:
Bumping: This costs between USD 0.95 and USD 2.95 depending on where you’re selling. Your item shows up at the top of search results and category feeds for 3-7 days straight, which substantially increases its visibility. The price changes based on things like item category, price, and how many other items are bumped at the time.
Wardrobe Spotlight: For USD 6.95, sellers in some markets like the UK can showcase five items in premium spots on buyers’ newsfeeds for a week. This tool works best especially when you have at least five items listed because it targets buyers with matching priorities.
These optional features bring in steady money for Vinted while keeping their promise of free listings.
Third-party advertising revenue
Beyond marketplace fees, Vinted has built a strong advertising business. The platform earned USD 22 million from retail media in Europe during 2023, which was 22% more than the USD 18 million from the year before.
Vinted now runs one of Europe’s biggest retail media networks. Advertisers can use a self-service system to create their campaigns, and their sponsored listings blend in with regular content. The platform keeps ads limited to make sure shopping stays enjoyable, finding the right balance between making money and keeping users happy.
The platform also works through strategic collaborations with fashion brands. Users who click these partner links and buy something help Vinted earn commission fees, which helps broaden its income sources.
This mixed approach lets Vinted stick to its seller-friendly policy of no listing fees or commissions, making it different from other secondhand marketplaces.
Breaking down Vinted’s revenue streams
Let’s get into each part of Vinted’s monetization strategy to understand how this secondhand marketplace gets revenue without charging sellers commission fees.
1. Buyer protection fee structure
Vinted’s buyer protection fee works as more than just a flat rate. The fee combines fixed and variable components:
- For US transactions: USD 0.70 plus 5% of the item’s price
- For UK transactions: £0.30-£0.80 fixed fee plus 3-8% of the item’s price
- For European markets: €0.70 fixed fee plus 5% variable fee
These fees support Vinted’s secure payment processing, dispute resolution services, and fraud prevention systems. The fee structure makes higher-priced items generate more revenue for the platform. Buyers must pay this protection fee but get detailed coverage that safeguards their purchases.
2. Bumping items for visibility
Bumping stands out as one of Vinted’s most profitable optional features.
Sellers who buy a bump get these benefits:
- Their items show up at the top of relevant search results
- Products get placement in category feeds
- Listings get up to 5x more visibility
Bump prices change based on the marketplace and item category:
- US market: USD 0.95-2.95 per bump
- UK market: £0.50-£1.95 per bump
- Duration: 3-7 days of premium placement
Bumps work best for sellers in competitive categories or with higher-value items where promotional costs can speed up sales.
3. Wardrobe Spotlight feature
Wardrobe Spotlight lets sellers promote multiple items at once:
- Cost: £6.95/€8.95 for a 7-day promotion period
- Showcases 5 items from a seller’s collection
- Items appear in premium positions in buyers’ feeds
- Targeting focuses on users with matching fashion priorities
This feature brings substantial revenue to Vinted because sellers with larger inventories invest in promotion. The platform prices this feature higher than individual bumps to create different promotional levels.
4. Third-party ad placements
Vinted’s advertising business has grown steadily, bringing in €22 million in 2023—a 22% increase from €18 million the previous year.
The platform’s approach has:
- Self-service campaign creation system for advertisers
- Sponsored listings that blend with organic content
- Limited ad volume to keep user experience smooth
- Focus on fashion and lifestyle brands that matter to users
The platform’s huge user base of 105 million members across 20+ countries attracts advertisers. Vinted owns one of Europe’s largest retail media networks and can charge premium rates for targeted placements.
5. Crosslisting integrations (e.g., Zipsale)
Vinted has grown its revenue through mutually beneficial alliances with third-party services:
- Zipsale integration helps sellers crosspost items to multiple platforms
- Vinted gets referral fees when users use these partner services
- Integration partnerships boost the platform’s features without development costs
- Cross-platform promotion fees add more revenue
These partnerships bring in more money as Vinted can profit from seller activities beyond its platform while offering expanded selling opportunities.
These five revenue streams help Vinted keep its seller-friendly approach of zero listing fees while making substantial income from buyers and optional seller promotions.
How Vinted’s business model differs from competitors
Vinted stands out from other secondhand marketplaces because of its seller-friendly fee structure. The platform has turned the traditional e-commerce model upside down by not taking a cut from sellers’ earnings.
No seller fees vs. Depop and Poshmark
Vinted’s biggest difference from its competitors lies in its zero seller fees or commissions. Here’s how the platforms stack up:
| Platform | Seller Fees | Payment Processing | Listing Fee |
| Vinted | 0% | 0% (paid by buyer) | Free |
| Depop | 10% | 2.9% + $0.30 | Free |
| Poshmark | 20% ($15+) | Included in fee | Free |
| Poshmark | $2.95 (under $15) | Included | Free |
| Mercari | 10% | 2.9% + $0.30 | Free |
This table shows how Vinted’s business model breaks away from industry standards. While Depop charges a 10% commission plus processing fees and Poshmark takes 20% for items over $15, Vinted sellers keep their entire asking price.
Focus on buyer-funded model
Vinted has created a “buyer-pays” business model that removes all financial burden from sellers. The platform makes money through buyer protection fees, which creates several advantages:
- Lower barrier to entry for sellers – Zero upfront costs attract casual sellers to the platform
- Higher net earnings for sellers – Sellers get their full asking price, making Vinted better than commission-based platforms
- More competitive pricing – Sellers can price items lower since they don’t need to factor in commission fees
This strategy has helped Vinted reach a €4.5 billion valuation. The buyer-funded approach also helps maintain a larger and more diverse inventory than its competitors.
Comparison with eBay’s recent fee changes
eBay, once the leader in online secondhand selling, offers an interesting contrast. The platform’s fee structure has grown complex with many changes:
eBay charges:
- Insertion fees (for listings beyond monthly allowance)
- Final value fees (typically 12.9% plus $0.30 per order)
- Payment processing fees
- Optional promotional fees
eBay has lifted the $750 cap on final value fees in most categories, which means high-value item sellers pay much more. Vinted keeps its no-fee approach for sellers whatever the item value.
Vinted’s simple and clear fee structure makes a sharp contrast to eBay’s complicated system. Many sellers have switched from eBay to Vinted, especially those selling clothes and accessories.
Vinted’s business model represents state-of-the-art thinking in the marketplace landscape. The platform has created a uniquely seller-friendly environment by flipping the traditional marketplace fee structure. It still gets more and thus encourages more revenue through buyer fees, premium features, and advertising.
This approach has accelerated Vinted’s growth across Europe and into North America—showing that a buyer-funded business model can challenge the commission-based norm.
How Vinted works for buyers and sellers
Vinted’s platform uses an optimized process that makes buying and selling simple. This approach supports their unique way of making money without charging sellers any fees.
Listing and selling process
Selling on Vinted is quick and easy. Sellers just need to download the free app, snap photos of their items, write descriptions, and pick their prices. Their listings go live right after they tap “Upload” with no fees attached. The platform doesn’t allow stock images or professional photos.
This rule makes sure buyers see real pictures of secondhand items. Vinted’s no-fee policy attracts sellers to the marketplace and shapes how the company makes money.
Shipping and payment flow
The payment process kicks in once someone buys an item. Buyers pick their shipping method at checkout and pay shipping costs with their purchase. Vinted keeps the buyer’s money safe until they confirm they’re happy with their purchase.
Sellers get alerts when their items sell and need to ship within five days. If they don’t, the sale gets canceled automatically. They print Vinted’s prepaid shipping labels, box their items, and drop them off at pickup points. Both buyers and sellers get immediate updates about their package’s journey. Vinted moves the money to the seller’s Vinted Wallet only after buyers approve their purchase or the 2-day review period ends.
Refunds and buyer protection
The mandatory Buyer Protection fee powers Vinted’s revenue model. This fee is 5% of the item’s price plus USD 0.70 for regular transactions. Buyers get complete protection that guarantees refunds in three situations:
- Items don’t arrive as promised
- Products arrive damaged during shipping
- Items are by a lot different from their descriptions
Buyers have 2 days after delivery to report any issues. Vinted gives full refunds that cover everything – the item’s price, shipping costs, protection fees, and taxes if the claim is valid. This protection system, paid by buyers, lets Vinted skip seller commissions while keeping transactions secure. That’s the main way Vinted makes its money.
The growth and valuation of Vinted
Vinted’s revenue model has catapulted the company to remarkable financial success, making it one of Europe’s most valuable tech startups. The secondhand marketplace reached an impressive €5 billion valuation in 2024, up from €3.5 billion just three years earlier.
Funding rounds and investors
Vinted has secured substantial funding through strategic investment rounds since its founding in 2008. The company’s total funding stands at approximately $872 million across seven rounds. A €340 million secondary share sale led by private equity giant TPG closed in October 2024. This deal welcomed several prominent new investors:
- TPG (lead investor)
- Hedosophia
- Baillie Gifford
- Invus Opportunities
- FJ Labs
- Manhattan Venture Partners
- Moore Strategic Ventures
Vinted has managed to keep strong ties with early backers like Accel, EQT, Insight Partners, and Lightspeed Venture Partners. The company’s first major funding came through a $6.6 million Series A round in 2013, with a $27 million Series B following in 2014.
Revenue milestones and user base
Vinted’s financial performance has grown faster in recent years. The company posted €813.4 million in revenue for 2024, showing a 36% increase from 2023. The company’s net profit soared to €76.7 million in 2024, marking a 330% jump from €17.8 million in 2023.
Key revenue growth figures:
- 2016: €8 million
- 2018: €32.9 million
- 2020: €152 million
- 2023: €596.3 million
- 2024: €813.4 million
The platform serves over 120 million users in 22 European countries [261]. France leads as its biggest market, followed by the United Kingdom, Germany, and Italy. Users can now browse through approximately one billion items for sale.
Future monetization potential
Vinted aims to broaden its reach beyond its current 22-country presence in 2025. The company launched Vinted Ventures, an investment arm that provides funding between €500,000 and €10 million to Series A through Series C stage companies in the secondhand retail space.
The company has expanded beyond fashion by adding electronics categories and enhancing its logistics and payment services through Vinted Go and Vinted Pay. These initiatives, combined with improved profitability (adjusted EBITDA grew from €76.6 million to €158.9 million), set Vinted up for continued financial growth through its buyer-funded revenue model.
Conclusion
Vinted earns money from buyer protection fees instead of seller commissions, with revenue reaching €813.4 million in 2024. This buyer-funded model stands out from traditional marketplace approaches. The company charges buyers a mandatory fee that includes a fixed amount plus a percentage of the item’s price.
The platform’s optional features like Bumping and Wardrobe Spotlight have turned into major money makers. Sellers can boost their visibility through these features without any required fees. Vinted’s advertising business brought in €22 million in 2023, showing how the company has expanded beyond simple transaction fees.
This unique business model’s results tell the whole story. The company’s valuation has hit €5 billion, and its net profit jumped four times to €76.7 million in 2024. Vinted’s approach tackles a key marketplace challenge by removing commission fees for sellers while getting revenue from buyers who get valuable protection guarantees.
The company’s strategy has driven amazing user growth to over 120 million members in 22 countries. While Depop, Poshmark, and eBay still charge seller commissions, Vinted has shown that moving costs to buyers creates a successful secondhand marketplace. This fresh take on marketplace economics will shape how future platforms build their revenue models in the growing circular economy.
FAQs
Q1. How does Vinted generate revenue without charging sellers?
Vinted primarily makes money through buyer protection fees, which include a fixed amount plus a percentage of the item price. They also offer optional promotional features for sellers and generate income from third-party advertising.
Q2. Are there any hidden costs for sellers on Vinted?
No, listing and selling items on Vinted is completely free for sellers. There are no commissions or fees taken from the seller’s earnings. However, buyers pay a mandatory protection fee on each purchase.
Q3. What benefits does the buyer protection fee provide?
The buyer protection fee covers secure payment processing, fraud prevention, and dispute resolution. It also guarantees refunds if items don’t arrive as promised, arrive damaged, or significantly differ from their descriptions.
Q4. How can sellers increase their visibility on Vinted?
Sellers can use optional paid features like “Bumping” to appear at the top of search results, or “Wardrobe Spotlight” to showcase multiple items in premium positions. These features cost extra but can significantly boost visibility and sales.
Q5. Is Vinted profitable with its unique business model?
Yes, Vinted has proven highly profitable with its buyer-funded approach. In 2024, the company reported €813.4 million in revenue and €76.7 million in net profit, demonstrating the success of its innovative business model in the secondhand marketplace industry.