- Get the lowdown on Kijiji’s business model and how they generate revenue.
- Review Kijiji’s competitors and their future growth model.
Kijiji is a Canada-based online classifieds website owned by Adevinta, a global marketplace specialist operating in 16 countries. Kijiji was originally launched as an eBay subsidiary in 2005. With Kijiji, you can connect with others in the community to exchange goods and services.
Scroll down to find out more about how they make money.
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What does Kijiji do?
Whether you’re looking for a local retailer or a plumber to fix a leaking pipe in your kitchen, you can connect with others in your community through the Kijiji platform.
Kijiji is an online classifieds platform on which you can place and view advertisements. You can use Kijiji to find work, exchange goods and services, and develop your local business. Kijiji also acts as a free job posting site that allows employers to place job advertisements in their local area under their respective job industry.
How does Kijiji work?
To place free ads on Kijiji, the platform requires you to create an account. All you have to do is enter a username and password. Once your account has been successfully created, you can place ads on the platform and start making money.
When you place an ad on Kijiji, it is listed on page one, where visibility is highest. Your ad moves down and eventually onto page 2 as new ads are listed. As more users place similar ads, your ad will be pushed further down.
You can improve your ad’s chances of staying on page one for longer by avoiding some of these common mistakes:
- Avoid vague or limited information about the product you are selling.
- Do not misrepresent what’s being sold.
- Include an accurate photo of the item on sale.
- Prices should be competitive.
- Avoid placing ads for products that are out of season.
How does Kijiji make money?
Kijiji makes money from commissions on sales and advertising. It has three primary sources of income: seller listing fees; fees for promoted visibility; and advertising.
Seller listing fees
Like other online classifieds platforms, Kijiji charges an insertion or listing fee to sellers to place ads.
The amount charged to list an ad depends on a number of factors such as the type of listing, buy it now and reserve prices set by the seller, etc.
Fees for promoted visibility
Kijiji charges sellers to increase their visibility on the marketplace.
Native ads, banner ads, full page takeovers on homepages and category pages, plus branded content are all available.
Future growth engine
Kijiji plans to grow in the future by tapping into social media networks like Facebook, Instagram, Tumblr, Twitter, etc. These social networks represent an opportunity for Kijiji to significantly grow their business in the Canada market.
Integrations with ecommerce platforms such as Shopify and buy now pay later services like PayBright could help engage younger demographics in Canada.
Kijiji could position itself as a marketplace in Web 3 and make it possible for sellers to use AR in their listings.
Despite fizzling in the United States, Kijiji has managed to maintain a strong foothold in the Canadian market. Craigslist, Gumtree, eBay, and Facebook Marketplace are all competing for the same users and trade.