How Carousell plans to 10x its user base

Online classifieds marketplace Carousell is pushing for buyers and sellers to make payments and deliveries directly through the platform as it pursues its next phase of user growth.

Dubbed “Buyer Protection,” the new transaction experience has been on trial mode for listings in the fashion category since May. By mid-August, the feature will be gradually rolled out to other categories that do not predominantly list high-value items, such as accessories, beauty, and hobbies.

At the heart of the rollout is an opt-in “buy” button that streamlines the purchase, payments, and delivery process, while eliminating the need for negotiations and boosting safeguards for buyers.

Payments are made digitally and held by Carousell. Also, payments will only be disbursed to sellers after buyers confirm that their orders were received in good condition. Meanwhile, sellers can choose from a range of delivery methods and providers.

Should sellers pick a Carousell delivery partner such as J&T Express, then door-to-door deliveries can be arranged with a few clicks.

The idea for Buyer Protection came about after the Covid-19 pandemic drove Carousell to assess its growth prospects. “We were asking ourselves, where do we now get the next phase of 3x, 5x, 10x user growth from?” Vishal Salunkhe, the company’s vice president and head of goods, told Tech in Asia ahead of the feature’s official launch.

See also: Carousell records 67% revenue growth in FY22 as expenses climb 57%

He added that although one out of three Singaporeans browse and search on the platform every month, these users are not necessarily making transactions.

The new changes, initially available in Singapore, will provide the push that its users need – or so Carousell expects – as it marches a long road toward profitability. And hopefully, revenue will eventually follow.

A better product-market fit

Escrow services aren’t new to Carousell, which operates in six Asian markets including Indonesia, Malaysia, and Taiwan.

In Singapore and Malaysia, the company offers escrow through a feature called Carousell Protection. Formerly called CarouPay, the service was launched in those markets in 2018 and 2022, respectively.

In Taiwan, Carousell provides a cash-on-delivery service via a network of 7-Eleven convenience stores, where users can pick up and drop off parcels.

For high-value items like cars, luxury goods, and mobile devices, Carousell also offers a program that checks the quality and authenticity of goods tagged “certified.” Depending on the category, items also come with warranties, money-back guarantees, and free returns.

Money will follow user growth

Taking a leaf from eBay’s book

A full “ecommerce-like” experience