Assignment 1 : OfferUp – Market Analysis
OfferUp was founded by two new fathers with a mountain of kid’s stuff, Nick Huzar and Arean van Veelen, locally in Seattle in 2011. With that motivation, OfferUp was born with one mission: revolutionizing how you buy and sell locally with a single snap. It was ranked at #126 in Geekwire 200 Startup List.
I started using OfferUp since 2 years ago when I moved to Bellevue. Cleaning up things in the garage and storage, I realized how much “new stuff” I bought but never used for once. I started posting things through Craigslist, eBay, and other social media channels. Then I found some disadvantages of these networks: 1) communication is too slow through email channel; 2) buyers need to travel all the way to my area for the purchased items, and it’s a waste of time if the buyers are not satisfied with the item when they see it; 3) I am very concerned about overwhelming my social media network with these “junk sale”. So I searched online, downloaded a few apps and gave a try, OfferUp helped me make a few fast deals within 48 hours after the post.
OfferUp is doing what its slogan says: Sell, Buy, Simple. Users only need to spend 2 minutes on the app/website through 4 easy steps: picture, price, description, post. It browses the items by zipcode, which narrows down the buyers in the neighborhood. Items can be searched by categories, and last quarter OfferUp launched “Holiday” SEO to boost the sales during holiday seasons in 2014. It focuses on mobile users, and reached over 40,000 users on Android, and non disclosured number on iPhone/iPad users. From a few articles I read about OfferUp, it steals almost 30% market shares from Craigslist and eBay locally in Seattle. The app connected Facebook and Twitter’s users , which is easily to tell OfferUp’s scalability in nationwide market expansion.