Letgo App and OfferUp – Everything Explained

Marketplaces like OfferUp and Letgo app are witnessing exponential growth due to their exceptional and wide range of services. Today, everyone who wishes to shop economically opts for a local consumer-to-consumer e-commerce application.

However, this isn’t the only reason why both these marketplaces are trending. Recently, OfferUp acquired the Letgo app and merged its services with its new application. This has left the users in a state of confusion as they do not know what will happen to their accounts, subscriptions, on-going deals, etc. 

However, you can end your search for answers as you’re at the right place. 

This article will discuss everything you need to know about OfferUp and Letgo, their merger, the resulting changes, and much more! Moreover, if you’re a small business looking to make a similar application like OfferUp, we have some valuable information for you too. 

Let’s get started.

What is Letgo App?

Founded in 2015, the Letgo App is a mobile marketplace that facilitates consumer-to-consumer sales and interaction through its website and application. In simple terms, it is a platform where verified users (sellers) put up classifieds about their goods that they wish to sell, enabling the other users (buyers) to purchase the second-hand goods. If a buyer likes a product, they can contact the seller and set-up a meeting to exchange the goods for cash. 

Above all, it is recommended that you only make transactions with cash and opt for a public place to meet-up for the exchange. It can be very risky to make payments in-advance as you wouldn’t get a chance to inspect the product and know more about the seller’s background. Therefore, it is advisable to check the general safety tips for both buyers and sellers. 

To sum up, Letgo makes the exchange process more fun and convenient by offering a local marketplace where users can exchange used-goods without hassle.

The Rise of Peer-to-Peer Marketplaces in 2025

In recent years, C2C (Consumer-to-Consumer) marketplaces like Letgo and OfferUp have reshaped the eCommerce landscape by making local buying and selling easier than ever. With the gig economy and circular economy gaining traction, more users now prefer resale platforms over traditional retail apps.

In 2025, the trend continues to grow with increased smartphone usage, location-based services, and AI-driven personalization becoming central to user experience. Apps like Letgo and OfferUp are no longer just second-hand selling platforms — they’re becoming social-local-commerce (SoLoCo) hubs where users interact, exchange, and build communities.

List of Items Allowed and Not Allowed on the Letgo App

Letgo allows you to buy and sell almost anything and everything. However, there are a few exceptions. Let’s discuss the things that are allowed, not allowed, and prohibited. 

Additionally, you can check the complete list to understand better the kind of products they permit. 

Letgo App and OfferUp – Combined Marketplace

On 31 August 2020, Letgo became a part of OfferUp. The marketplaces got combined into a single application to offer an improved experience to the users. This merger brought together millions of buyers and sellers across the country. 

As a result, users will need to download the new Android or iOS OfferUp and Letgo app and sign-in with their Letgo credentials. The other way is to sign-up with a new account to access the combined marketplace. Moreover, the best part is that the users’ reputation, i.e., their ratings, joining date, sales and purchase history, etc., are intact and will transfer into the new Offerup app as they are. 

• Why Did Letgo App Merge With OfferUp?

Many users had this question and couldn’t understand the reasons for the consolidation of both the marketplaces, especially given that they were similar. 

Letgo had approximately 74 million active users as of June 2020. Likewise, OfferUp’s application has been one of the top five popular shopping apps lists for the past three years and has over 90 million app downloads. Both the applications decided to merge to skyrocket the marketplaces’ efficacy and strength. As a result, they could offer a better and more significant experience to buyers and sellers. Therefore, the sellers witnessed more users showing interest in their products, and the buyers got access to more deals. 

• What are the Changes in the New OfferUp and Letgo App?

The basic functionalities of the application remain the same. You can buy and sell on the application as you could previously on the Letgo app. However, there are some changes in the new consolidated application, which are as follows:

1. 1. The users will have access to a nation-wide shipping feature.
   2. Unlike Letgo that removed the listings after 30 days, OfferUp’s listings will never expire.
   3. The users can benefit from OfferUp’s safety programs like TruYu and Community MeetUp Spots.
   4. Some of the services of Letgo will no longer be available, such as Jobs, Rental Listings, and Gift Cards. 
   5. The application won’t be supported in Canada anymore.
   6. Customers having a paid subscription on the Letgo app will not be signed up in the OfferUp app.
   7. The chats and data regarding on-going deals will be lost. 

Why Should Businesses Make an App Like Letgo App and OfferUp?

Making a consumer-to-consumer marketplace can be beneficial and lucrative to businesses. Let’s discuss the compelling reasons why you should create an application similar to OfferUp and Letgo. 

• Increased Customer Base

Marketplaces like OfferUp and Letgo app offer various advantages to both sellers and buyers. For instance, buyers get an abundance of choices and lower prices, and sellers get increased profitability. Therefore, your user base can grow exponentially due to these favorable opportunities. Who knows, it may make you the next market leader that offers a C2C marketplace application.

• Marketing Activities

Information about such applications spread rapidly via word-of-mouth and the marketplace community. You can utilize the existing user base and use social media platforms to promote your application. Therefore, you wouldn’t need to spend extensive amounts of resources to market and advertise your product. 

• Scalability

The best part about such a marketplace is that you can scale the application. You can add new features as per the latest market requirements and trends. For instance, you can initially aim at providing a platform that solely facilitates the exchange of goods. After your user base starts growing, you can aim at providing services too. 

• Revenue

Most local marketplaces like eBay, OfferUp, and Letgo app earn revenue through the same monetization strategies. These include charging seller fees, transaction fees, subscription fees, etc., from your application users. We’ll be discussing these strategies in the next section. 

Planning to build a local marketplace like OfferUp and Letgo App? We are here to offer you top-tier mobile solutions. Contact us now.

Revenue Models of Letgo App and OfferUp 

Now that we know what OfferUp and Letgo are, let’s understand how they work and earn revenue. 

• Subscription Fees

OfferUp and Letgo app offer their users some additional services and perks on a subscription-basis. For instance, subscribed users can get direct calls from the buyers and get their classifieds featured on the application. The users can opt for the subscription and pay via Google Play Store or App Store. Consequently, these premium features will be activated instantly upon payment. 

• Transaction Fees

This is the most common way to earn revenue for consumer-to-consumer marketplaces. OfferUp and Letgo charge a fee from the buyers, known as ‘transaction fee’ to facilitate a smooth exchange of goods and services through the platform. Additionally, the commission may be fixed-cost or a percentage of the amount. 

• Seller Fees

Just like OfferUp and Letgo charge a transaction fee, the apps also charge a Seller Fee. It is a commission for providing sellers a platform to offer deals on the application. Moreover, This fee varies from app-to-app and can be based on a fixed-cost or a percentage of the item’s price. For instance, Etsy charges $0.20 for each item that you sell via the platform. 

• Advertisements and Featured Listings

Users looking to sell-off their products immediately or at a good price can opt for the featured listings option to find relevant buyers. In turn, the application charges an advertising fee to display the classifieds at the top of the listings. In short, it is a win-win situation for all parties involved as the application earns revenue, and the buyers and sellers achieve what they wish for.

These are the ways OfferUp and Letgo app make money. However, their monetization model is not solely responsible for their success. The features and functionality of consumer-to-consumer applications also matter a great deal. 

Let’s discuss the features that one must include to succeed as a marketplace.

How AI Is Transforming Online Marketplaces Like Letgo and OfferUp

To succeed in this evolving space, you must adopt emerging tech — particularly Artificial Intelligence (AI) and Machine Learning (ML). Here’s how AI is redefining modern marketplaces:

1. AI-Powered Product Matching

AI analyzes user intent and preferences to show listings that match user behavior, price ranges, and item categories. It enhances buyer satisfaction and seller visibility.

2. Predictive Insights for Sellers

Market intelligence tools powered by AI can suggest the best time to list, optimal pricing, and target buyer persona based on trends, seasons, and historical data.

3. NLP-Based Chatbots

Natural Language Processing (NLP) enables smarter chatbots that can:

• Respond instantly to common queries

• Assist users in negotiating offers

• Guide first-time users in listing items

4. AI Moderation Tools

With high volumes of listings and user-generated content, AI helps detect:

• Inappropriate or banned items

• Fake listings or misleading titles

• Harassment in chat or spam activity

This not only ensures compliance but also builds trust and safety across the platform.

6 Must-Have Features to Include in an Application like Letgo App and OfferUp

If you wish to grow your user base exponentially, you need to offer features that make the application attractive and easy-to-use. Moreover, your users shouldn’t have a hard time trying to figure out how the application works. For such reasons, you need to include features that offer a smooth onboarding experience and boost your users’ retention rate. 

Let’s look at some of the must-have features in your consumer-to-consumer marketplace application. 

• Registration/Log-in

This is the first feature that one should include in the application. Ensure that the registration process doesn’t involve too many steps. The customer’s name, email address, age, sex, etc., is good enough to start. Additionally, you can also provide the option of one-click registration via linking email or social media accounts.  

• Advanced Search and Filters

While the product listings offer customers a wide range of products, it is essential to include a search option to help customers find exactly what they are looking for. Additionally, It is important to have a sort and filter option to enhance their search results. Therefore, work on dividing and categorizing the products under multiple groups to increase the search results’ efficiency.

• In-app Camera 

This feature allows the sellers to click a picture of their products directly from the application. This eliminates the process of separately clicking and uploading the pictures on the marketplace and makes the overall process more convenient.

Moreover, a photo editor can be a great addition to your app. Consequently, users can crop, rotate, flip, increase/decrease the brightness, etc., just as they need. 

• In-App Chat Feature

To ensure seamless communication, your application should have an in-app chat feature. As a result, users can discuss the products and offer special deals. Moreover, you can also add the option of blocking chats and reporting profiles to protect the users.

• Feedback and Rating

OfferUp and Letgo App offer feedback and rating option to build a ‘customer reputation.’ This means that the users will be able to rate and see the other ratings given to the buyers/sellers and know their credibility. Likewise, you can add this feature to build trust between customers and help them make informed decisions.

• Order History

The users should be able to access their buying and selling history and other important information such as product, transaction date, buyer/seller details, and so on. 

These were the basic and MVP features that you can include in your marketplace. Now, let’s have a look at some exceptional features that you can add to your application.

AI-Driven Features for Your OfferUp-Like App

To future-proof your consumer-to-consumer (C2C) marketplace and stand out in a highly competitive landscape, integrating artificial intelligence is a strategic advantage. AI not only enhances user experience but also automates critical functions, improves security, and drives engagement.

1. AI-Powered Pricing Suggestions

AI algorithms can analyze live market trends, item categories, demand patterns, historical pricing data, and even local buyer behavior to recommend optimal listing prices. This helps sellers price their items competitively, increases conversion rates, and fosters price transparency on your platform.

Benefits:

• Competitive yet fair pricing

• Faster item turnover

• Reduced manual research for sellers

2. Image Recognition and Auto-Tagging

AI can detect the object in a product photo and automatically assign it to the correct category. This accelerates the listing process, ensures proper tagging, and reduces manual input errors. It also enhances product discoverability during searches.

Use Cases:

• Automatically label uploaded images

• Suggest relevant tags and titles

• Identify condition (e.g., new, lightly used, damaged)

3. Real-Time Fraud Detection System

AI models trained on transactional patterns can detect fraudulent behavior early. These models monitor activities like multiple suspicious logins, high-frequency item reposts, or spam messages and flag or block potentially dangerous accounts in real-time.

Key Capabilities:

• Spot fake accounts and listings

• Prevent scam transactions

• Maintain platform credibility

4. Visual Search Functionality

Users can upload a photo of an item they’re looking for, and the AI system returns visually similar listings. Powered by computer vision, this feature is especially useful in categories like fashion, furniture, and electronics.

Benefits:

• Faster product discovery

• Improved user satisfaction

• Lower bounce rates on search pages

5. AI Chatbot for Buyer-Seller Support

Integrate an AI-driven chatbot to handle routine support requests, automate FAQs, and even assist in scheduling meetups or handling price negotiations. This reduces support workload and provides instant assistance to users.

Advanced Capabilities:

• Schedule meetups through chat

• Guide users through app features

• Provide real-time transaction support

6. Smart Feed Personalization

Using machine learning, you can personalize the app’s product feed based on user activity, browsing history, purchase patterns, and geolocation. The AI learns what each user is likely to engage with and adjusts the feed accordingly.

Impact:

• Increased time spent in-app

• Higher engagement rates

• Improved product visibility for sellers

7. AI-Enabled Review Moderation

User-generated reviews and ratings can be filtered and ranked using AI-powered sentiment analysis. This ensures that spam or inappropriate content is filtered out while promoting helpful reviews that drive buying decisions.

Functionality:

• Detect offensive or irrelevant reviews

• Highlight genuine user feedback

• Protect community trust

8. Demand Forecasting for Sellers

Provide sellers with demand insights and trending product suggestions based on AI analytics. This enables them to list items that are more likely to sell, optimizing their strategy and platform retention.

Insights Can Include:

• Most searched items in a location

• Price points that convert best

• Categories with seasonal spikes

9. Intelligent Push Notifications

With predictive analytics, you can send push notifications tailored to user behavior, such as alerting them to a price drop on a saved item or a new listing that matches their previous searches.

Results:

• Reduced churn

• Higher click-through rates

• Timely, relevant communication

Exceptional Features to Include in an Application like Letgo App and OfferUp

Following the industry giants and market leaders’ footsteps is a great way to set-up a base in the consumer-to-consumer market space. However, it may not guarantee success. Therefore, it is of utmost importance to never miss out on a chance to showcase your uniqueness and creativity. 

Idea Usher recommends you to include the following unique and exceptional features that will help you offer a game-changing application. 

• Auto-detect Location

You can offer an auto-detect feature instead of making users manually fill out their location. This feature will identify the user’s current location and provide recommendations of nearby and relevant sellers. However, do not substitute the manual feature with the auto-detect location as users may want to check out products available in other locations. 

• Hot Deals

You can offer the users the feature to compare various deals available on the platform. As a result, they can choose the one that suits their budget requirements. Additionally, you can also display the on-going discounts and limited period offers. This will further entice the buyers to purchase the goods immediately. Moreover, this can be an additional revenue channel for your business. 

• Virtual Try-on

A virtual try-on can be a great addition to your application. The users can virtually try on the products through camera filters and get the items’ look and feel. This groundbreaking solution can make your application the #1 choice of the users.  

These were some of the exceptional and unique features that you can add to your marketplace. Add these features and offer a better solution than the OfferUp and Letgo app.

Conclusion

After having gone through the extensive discussion on OfferUp and Letgo app, its revenue models, and features, I am sure you are more confident than before about building your project. Remember to include the must-have and exceptional features in your application to set out your consumer-to-consumer marketplace.

Moreover, if you plan to build a local marketplace like OfferUp and Letgo App, we are here to offer you top-tier mobile solutions. Contact us now.

I hope you liked our article on “OfferUp and Letgo App – Everything Explained.”

Frequently Asked Questions –

1. Is Letgo still available to download?

No, the Letgo app is no longer available as a standalone application. It officially merged with OfferUp in August 2020. Users are now required to download the OfferUp app to access their Letgo accounts and continue buying or selling items.

2. What happened to my Letgo account and listings?

If you were an existing Letgo user, your account details such as ratings, purchase/sale history, and profile information were transferred to the new OfferUp app. However, ongoing chats and certain data like listings might not have migrated during the merger.

3. Do I need to create a new account on OfferUp if I used Letgo?

You can sign into OfferUp using your existing Letgo credentials. However, if you prefer, you can also create a new account on OfferUp and start fresh.

4. Is OfferUp free to use like Letgo was?

Yes, OfferUp is free to use for both buyers and sellers. However, it offers optional premium features like promoted listings and shipping services, which may come with additional fees.

5. Can I use OfferUp outside the United States?

OfferUp is currently focused on the U.S. market and discontinued support for Canada after the Letgo merger. International availability may be limited.

6. Does OfferUp support nationwide shipping?

Yes, unlike Letgo, OfferUp offers a built-in nationwide shipping feature, allowing sellers to reach more buyers beyond their local area.

7. Are payments secure on OfferUp?

OfferUp recommends users use in-person, cash-based transactions or their secure in-app shipping and payment methods. They also offer safety features like TruYou identity verification and community meetup spots.

8. Can businesses sell on OfferUp?

Yes, small businesses can list products on OfferUp. However, the platform is primarily designed for C2C (consumer-to-consumer) transactions. Businesses may also benefit from premium listing features to boost visibility.

9. What are the monetization strategies of OfferUp and Letgo?

OfferUp generates revenue through seller fees, transaction charges for shipped items, promoted listings, and subscription-based premium features.

10. Can I build an app like OfferUp and Letgo?

Yes, with the right development team, you can create a scalable, feature-rich C2C marketplace app. At Idea Usher, we specialize in building custom marketplace apps with advanced features, including AI integration, user analytics, and in-app payment systems.