Giftstarter monetizes via an 8% transaction fee to consumers
Ari Ewan · Is It Possible To Launch a Startup And a Baby At The Same Time? EP 257: Arry Yu · Jun 4, 2016 · at 5:40
Ari Ewan, founder and CEO of Giftstarter, explains the e-commerce group-gifting platform's revenue model to Nathan Latka.
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“We make money in a couple of ways. One, we have a transaction fee to the consumer. It's eight percent, but you know, think of a hundred dollar item. It's eight dollars broken into a bunch of pieces, maybe it's 40 pieces. No one person is paying the fee. And then secondly, we also make commission on the product sold because we are actually fulfilling products. We don't carry any inventory. We drop ship everything.”
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