Carousell bets safe users = more buyers

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Hello reader,

Have you ever been misled by an ecommerce seller?

I have and while it was in pretty hilarious fashion, it still left a bad taste in my mouth. I ordered a dehumidifier a few years ago – to counter the Hanoi spring humidity – on an ecommerce platform that shall remain nameless.

Instead of a dehumidifier, an aroma diffuser arrived. Which, as my then-girlfriend pointed out in between fits of laughter, would make the air in our apartment more humid, not less.

I was eventually able to return the product and get a refund. But it did put me off buying anything of value online for a while.

A service like Carousell’s new “Buyer Protection” program might sway me to take another crack at that dehumidifier – and the firm is betting there are plenty of other users out there like me.

Today we look at:

• Carousell’s bet that on-platform transactions will spur user growth
• Grab’s payments unit grows revenue but suffers a loss
• Other newsy highlights such as Tokocrypto shelving its IPO plans after Binance takeover and a new e-bike hailing service launching in Vietnam.

Premium summary

On-platform, on Carousell

GIF – Carousell

Carousell is betting that pushing for payments and deliveries to be made directly through the platform can 10x user growth.

The Singapore-based classifieds marketplace is rolling out a program it calls “Buyer Protection” to streamline the purchase, payments, and delivery process.

• Safety first: Buyer Protection has been on trial for fashion listings since May and will receive a wider rollout this month to categories such as accessories, beauty, and hobbies. Carousell holds onto any payments made through the program and only disburses them to sellers after buyers confirm their orders are received in good condition.
• Users first, money later: While the service is free for now, the firm will eventually charge a fee for Buyer Protection. Vishal Salunkhe, Carousell’s vice president and head of goods, tells Tech in Asia that the company isn’t focused on the “money-making” part of the product. Instead, by growing Carousell’s user base, revenue will hopefully follow.
• The eBay example: Carousell is following in the footsteps of eBay, which has managed all payments for marketplace transactions since 2021. The move has given the global ecommerce giant more control and visibility over how its customers are choosing to pay. It has also increased take rates.

Grabbing a loss

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Quick bytes