How Does Vinted Make Money? The Hidden Truth Behind Their Success [2025]

Ever wondered how Vinted makes money without charging sellers any fees? The answer lies in their unique business model that powers one of the ever-changing second-hand clothing marketplaces. Vinted's success speaks volumes - they've grown to over 105 million users across more than 20 countries with a €5 billion valuation in 2024. The company found that there was a profitable way to approach the resale market.

The platform's revenue comes mainly from buyer protection fees instead of seller commissions. Their financial success shows in the numbers - they earned nearly €600 million in 2023, marking a 61% increase from the previous year. Most marketplaces charge their sellers, but Vinted's strategy keeps the platform free for sellers. Buyers pay a fixed fee between 30p and 80p, plus 3% to 8% of the item's price. 

The company also earns from closet spotlights, bumping listed items, and third-party advertising that add to their soaring win. This piece breaks down Vinted's operations, revenue model, and the reasons their distinctive approach has shaken up the second-hand clothing market so well.

How Vinted Makes Money: A Quick Overview

Vinted's monetization strategy turns the traditional marketplace model upside down. The platform keeps itself completely free for sellers while making money through buyer-side fees, unlike most platforms that charge sellers.

Buyer protection fees as the core revenue stream

Buyer protection fees on every purchase are the foundations of Vinted's revenue model. These fees have two components:

• A fixed amount between 30p and 80p (or approximately $0.70 in the US)

• A variable percentage fee ranging from 3% to 8% of the purchase price

Vinted simplifies this to a flat 3% fee of the sale price including VAT for items over £500.

These fees serve a real purpose by funding buyer protections that include:

• Guaranteed refunds for damaged items

• Coverage for items that don't match their descriptions

• Protection against items that never arrive

• Access to customer support

• Secure payment processing

This buyer-focused fee structure brings in substantial revenue and builds trust in the platform. Vinted generated revenues of €245 million (approximately $269.20 million) in 2021, showing how well this approach works.

No seller commission: a unique approach

Vinted's business model stands out because it charges zero commission on sales. Other platforms like Depop, Poshmark, or eBay charge their sellers, but Vinted doesn't.

CEO Thomas Plantenga's leadership brought this zero-fee approach for sellers as a strategic change. The company used to charge sellers like everyone else but found that there was a dramatic increase in seller participation and inventory volume after removing these costs.

The platform's user base has grown to over 105 million users across more than 20 countries. Sellers don't pay listing fees, monthly subscriptions, or sales commissions, which makes it easier for casual sellers to join.

Optional paid features for sellers

Vinted offers premium promotional features that bring in extra revenue, though listing items remains free:

1. Item Bumps: Sellers can boost their listings to the top of search results and feeds for a fee. The cost varies based on factors like item category and price, usually between $0.05 to $5.00 per bump. These bumps last three or seven consecutive days (or until the item sells) and help items get seen more.

2. Closet Spotlight: Sellers can showcase five items from their wardrobe in special spots on buyers' newsfeeds for seven days by paying $6.95 (or £6.95 in the UK). The feature picks the most suitable items based on buyers' interests and shows stats on views and interactions.

These optional features create benefits for everyone. Sellers can speed up their sales when needed, and Vinted makes money without changing its "free-to-sell" promise.

The platform also makes money from third-party advertising, though this brings in less than buyer protection fees and promotional features.

Breaking Down Vinted’s Revenue Streams

Let's get into the five ways Vinted makes money through its business model. Vinted doesn't charge sellers any commission but still makes hundreds of millions in annual revenue through multiple income streams.

1. Buyer protection and service fees

Buyer protection fees are Vinted's biggest money maker, bringing in most of its €245 million revenue in 2021. These fees are mandatory for every purchase and break down like this:

• A fixed fee of 30-80p (about $0.70 in the US)

• A percentage fee of 3-8% of the item price

Vinted keeps it simple with items over £500 by charging a flat 3% fee. These fees actually pay for real services like sorting out disputes, secure payments, and protecting buyers from damaged or misrepresented items.

This setup works great because sellers can still list items for free. This helps Vinted keep plenty of items available, which brings in more buyers.

2. Shipping margins from carrier partnerships

Vinted makes extra money through mutually beneficial alliances with shipping companies. They get bulk discounts from carriers like USPS, Royal Mail, and DPD, and pass some savings to users while keeping a small cut per package.

Buyers pay shipping costs in the app. Vinted then pays the lower carrier rate and keeps the difference. Everyone wins - users get simple shipping at good rates, carriers get more business, and Vinted makes money without charging sellers.

3. Paid promotions: Bumps and Closet Spotlight

Optional promotion features are a big part of Vinted's extra income:

Bumps push listings to the top of search results for 3-7 days. Prices range from $0.05-$5.00 per bump, depending on the item. Sellers use this to speed up specific sales.

Closet Spotlight costs $6.95/£6.95 to showcase five items in premium spots for a week. The system picks items based on what buyers want and shows how well they perform.

These features make money while keeping Vinted's "free-to-sell" promise since they're completely optional.

4. Advertising and affiliate partnerships

Vinted makes money from ads and affiliate deals on its platform. With over 105 million users, advertisers can reach lots of people interested in fashion and sustainability.

It also earns commissions by sending users to related services and products. These partnerships bring in money without getting in the way of user experience.

5. Vinted Pro subscription for power sellers

Vinted Pro is a premium service for business sellers that has:

• Better analytics and tracking

• Tools for listing many items at once

• Better customer support

• Lower fees for selling lots of items

This subscription targets sellers who use Vinted as their main sales platform. It gives Vinted steady income while helping its most active sellers do better.

These five different ways of making money helped Vinted earn nearly €600 million in 2023—61% more than the year before. This mix of income streams lets Vinted keep its seller-friendly approach while growing the platform.

How Vinted Keeps the Platform Free for Sellers

Vinted's seller-friendly approach makes it unique in the crowded second-hand digital world. The platform lets users sell their items completely free, which turned out to be a brilliant business move.

Why Vinted doesn't charge seller fees

Vinted never charges sellers any commission, listing fees, or subscription costs. This zero-fee model isn't just a temporary deal - it's the foundation of Vinted's money-making strategy. Buyers pay all the fees.

The platform started with a different cost structure that included seller fees. The company's new leadership team made a smart move to drop all seller charges. This wasn't just being nice - it solved a big problem in second-hand marketplaces: getting enough items to sell.

Sellers on Vinted can now:

• Price items lower and still make money

• Sell occasional items without fee worries

• Keep 100% of what they earn

Buyers pay a protection fee, which creates a perfect balance. Sellers keep their full earnings while buyers get protection against fraud or misrepresentation.

Effect on seller growth and inventory volume

The numbers prove Vinted's no-fee strategy works. The "No Sellers' Fee Model" led to huge growth in users and listings. This strategy helped Vinted build one of the biggest collections in the second-hand clothing market, with over 800 million items listed.

Charging buyers instead of sellers created a powerful cycle:

1. Zero fees attract more sellers

2. More items bring more buyers

3. More buyers support the protection fees

4. The cycle keeps growing

A former Depop seller told Refinery29, she "really hates how Depop takes 10% of sellers' earnings. On Vinted, the system is more logical and it falls to buyers to pay this fee". This shows how Vinted strikes a chord with sellers who are tired of paying commissions.

Small sellers love this approach. People who just want to clear their closets or earn extra money don't have to worry about fees eating into their small profits.

Match for eBay and Depop

Vinted's game-changing model made big competitors rethink their approach. eBay made a bold move in October 2024 by removing fees for private sellers on almost everything except vehicles. They had already dropped seller fees for clothing because Vinted was dominating fashion resale.

The market looks very different now:

Vinted takes no seller fees at all. They make money from buyer protection fees of 3-8% plus a fixed amount.

Depop still takes a 10% cut from all sales. This makes a big difference in what sellers earn, especially on cheaper items with smaller profits.

eBay now looks more like Vinted, showing how well this approach works. The Drum reported that Vinted's free listing feature "holds so much sway that in April of this year, it made second-hand giant eBay flinch".

Vinted's seller-friendly policy does more than change the market. It helps the environment by making it profitable to resell cheaper items that might end up in landfills. This keeps more clothes in use - helping sellers, buyers, and our planet.

The Role of Trust and Buyer Protection in Monetization

Trust serves as the invisible foundation of Vinted's revenue model. The platform charges buyer protection fees between 3% and 8% plus a fixed amount. These fees aren't just revenue streams - they represent a strategic investment in marketplace confidence.

How buyer protection justifies the fees

Vinted turns what might seem like an extra cost into real value through its complete protection features.

The protection fee lets Vinted provide:

• Full refunds for items that arrive damaged

• Compensation when items don't match their descriptions

• Coverage for lost items during shipping

• Access to dispute resolution processes

• Secure payment processing without sharing banking details

These safeguards give buyers the confidence to purchase from unknown sellers in different countries. The fee structure follows simple logic - higher purchase prices need more protection, which explains the percentage-based component.

Escrow system and dispute resolution

The escrow payment system stands as the cornerstone of Vinted's trust infrastructure. Vinted doesn't send money straight to sellers. Instead, an external provider holds payments until transactions finish successfully.

This system delivers:

• A two-day window for buyers to confirm satisfaction after delivery

• Payment suspension options if problems arise

• Protection against fraudulent sellers

Buyers can click the "I have an issue" button within the set timeframe to start Vinted's resolution process. The system acts as a financial safety net and helps strangers feel comfortable making transactions they might otherwise avoid.

Building user confidence through transparency

The platform shows its protection costs clearly before purchase completion. Many platforms hide fees in fine print, but Vinted openly tells users these charges fund real protections.

This strategy shows a deep understanding that recommerce platforms rely on transaction integrity. One industry report stated, "Trust is a vital part of recommerce, where peer-to-peer trading depends on the integrity of transactions".

The platform proudly stands behind its buyer protection policy. It expresses the security it provides, which creates a positive cycle. Fee-funded protections lead to more transactions, generating more fees, which then fund even more complete protections.

Vinted’s Growth Strategy and Market Expansion

Vinted's aggressive geographic expansion strategy and innovative monetization model explain how the company gets more revenue while its zero-fee approach for sellers stays intact.

International expansion and local adaptation

A Lithuanian startup turned pan-European powerhouse, Vinted shows its methodical approach to market penetration. The platform now operates in over 20 countries and has a strong presence in France, Germany, Spain, Italy, the Netherlands, and the UK.

The company follows a calculated formula for each market entry:

1. A localized user experience with country-specific shipping options

2. Marketing campaigns tailored to local consumer behaviors

3. Buyer protection fees adapted to regional purchasing power

This regional customization strategy works well. France stands out as the company's most profitable market and handles more than half of Vinted's transactions.

Marketing campaigns and influencer partnerships

Vinted puts significant resources into brand awareness through:

• TV campaigns that feature real users instead of professional models

• Mutually beneficial alliances with micro and macro influencers

• Digital advertising that focuses on sustainability and affordability

These marketing efforts directly boost Vinted's revenue by growing the user base that pays buyer protection fees. The company's memorable "Don't wear it? Sell it" campaign appeals strongly to environmentally-conscious consumers throughout Europe.

Acquisitions and competitive positioning

Vinted's growth strategy combines strategic acquisitions to strengthen its market position:

• The company bought United Wardrobe, its main competitor in the Netherlands, in 2019

• Smaller local platforms are regularly acquired to gain quick market access and remove competition

The company's €250+ million funding rounds allow aggressive expansion while keeping its seller-friendly fee structure. The free selling process gives Vinted an edge over platforms like Depop and Poshmark that charge seller commissions.

Vinted's unique approach to monetization - charging buyers instead of sellers - works better for international scaling than traditional commission models. This strategy helps inventory grow faster in new markets.

Conclusion

Vinted's business model completely flips the traditional marketplace concept. The platform makes money from buyer protection fees instead of seller commissions. This strategy works amazingly well - Vinted reached almost €600 million in revenue in 2023, growing 61% from the previous year.

The brilliance of Vinted's approach comes from its deep market understanding. The platform gets more and thus encourages more inventory by making selling completely free. This creates a powerful growth cycle where more items attract more buyers, which generates more protection fees.

On top of that, Vinted makes money through several smart channels. These include paid promotions (Bumps and Closet Spotlight), margins from shipping partnerships, ads, and Vinted Pro subscriptions. These extra revenue streams make the company stronger without breaking its "free-to-sell" promise.

This model's success goes beyond just making money. Vinted's buyer protection system creates trust while funding the platform's operations. The approach has been so powerful that even a 28-year-old giant like eBay had to change its fee structure to keep up.

Vinted's bold international growth and local market focus have transformed this Lithuanian startup into a €5 billion recommerce powerhouse. The platform now has over 105 million users in more than 20 countries. Their unique approach shows how charging buyers instead of sellers can build a faster-growing, sustainable marketplace.

While different from the norm, Vinted's model shows a masterclass in marketplace breakthroughs. Sometimes the best strategy is just turning conventional wisdom upside down.

FAQs

Q1. How does Vinted make money if it's free for sellers?

Vinted primarily generates revenue through buyer protection fees, which include a fixed amount plus a percentage of the purchase price. They also earn from optional promotional features for sellers, shipping margins, and advertising partnerships.

Q2. What are the benefits of Vinted's buyer protection fee?

The buyer protection fee covers refunds for damaged items, compensation for misrepresented products, protection against lost shipments, access to dispute resolution, and secure payment processing. This builds trust and encourages transactions between users.

Q3. How does Vinted's no-fee policy for sellers impact the platform?

By eliminating seller fees, Vinted attracts more casual sellers and increases inventory volume. This larger selection draws more buyers to the platform, creating a growth cycle that benefits both sellers and the company.

Q4. What optional paid features does Vinted offer to sellers?

Vinted offers two main paid promotional features for sellers: "Bumps" to boost individual listings in search results, and "Closet Spotlight" to promote multiple items from a seller's inventory in premium positions for a set period.

Q5. How has Vinted's business model affected the second-hand marketplace industry? Vinted's unique approach of charging buyers instead of sellers has disrupted the industry, forcing competitors like eBay to reconsider their fee structures. It has also contributed to sustainability efforts by making it economically viable to resell lower-value items.