SWOT Analysis of Craigslist | Craigslist Strengths & Weakness, Opportunities and Threats of Craigslist
1. What is Craigslist?
Craigslist is a website that offers a unique platform for people to post their items for sale. It is an online marketplace where people can trade items of any value, from cars to jobs.
2. How the Business Model of Craigslist?
Craigslist earns from its classified ads business. It offers free advertisement and discovery service to the users where they can post their advertisements.
These advertisements are then made available to all Craigslist visitors who access information through its website or mobile apps.
Craigslist offers its services on different platforms, namely website, mobile apps and email alerts. The website is the only one that is free to use for anyone interested in posting advertisements.
3. How does Craigslist Makes Money?
The business model of Craigslist is based on its classified advertisement platform. Anyone can access the website and post their advertisement on Craigslist, but additional services can be purchased from the site if needed.
The website offers its visitors a free service, but it costs money for many premium services including;
a) Paid listings-This is a feature the website offers which the users can buy a premium advertisement. It allows a user to post a specific advertisement, which they can choose from categories that include those relating to jobs, services, housing and condition of items.
b) Expanded listing-The website also offers an option for users to create more than one ad for free listings as per their need.
c) category filtering-The website offers various categories for items like jobs, housing, services and items that consist of cars, bikes, boats and other vehicles.
d) Email alerts-For people who are not able to visit the website regularly or want to check their email accounts daily without visiting craigslist, it offers an instant email alert service.
4. Craigslist Business Strategies
These strategies include:
a) Advertising-The website offers a variety of advertising opportunities to its users. It allows users to post their ads on the website for free. Then, it provides a way where they can buy a more prominent posting space for a fee, which allows them to get their product in front of maximum possible customers.
b) Paid service and membership (which is a sort of paid advertising)-This is an option for people who need to promote their business.
c) Trade Center-It allows those who wish to buy and sell items, which they can do through Craigslist. This option also offers services such as custom listing and payment options.
d) Multiple post-This is an option if people want many items in one listing.
e) Managing the site-This involves organizing different categories, sub-categories or groups of items by grouping them together or categorizing them. It also involves managing the visibility of the ads by users, the search results and categories.
f) Sending emails-This is needed for those who are unable to come to the website daily due to work or other personal reasons.
G) Timing-This is the most important business strategy followed by Craigslist. It provides a convenient option for people to post their advertisements at a time which is convenient to them and suited to their requirements.
h) Customer service-This includes answering questions from clients, which will not only help them but also help in building rapport with the customers.
I) Website maintenance-This requires that the website must be maintained regularly by fixing bugs or errors that may have occurred during its usage. It is an essential measure to prevent loss of information and ad views on the site.
j) Keywords and Photos-The keywords and photos used for posting the product are important factors in making the advertisement successful.
5. Craigslist Revenue and Financials in 2021
The current revenue for Craigslist is estimated to be around $ 565 Million in the year 2020.
The Craigslist generated a revenue of $694M in 2016 and Net Income of $500M and is expected to generate revenue of $1.07Bn in 2020, with a projection of $565M.
Ways of Targeting Traffic on Craigslist
Some of the ways to target traffic on Craigslist includes:
a) Right Location-Craigslist has different options for targeting traffic to its website. These include countries, states or cities based on the location of the users.
b) Right Category-Targeting Craigslist users can be done on basis of their interest, which can be done through the category they belong to.
c) Local Transaction-Craigslist allows users to make purchases only in their location only. So, it can also be considered as a means of targeting traffic on Craigslist.
d) Search keywords-Targeting traffic on Craigslist can be done by using keywords which are related to the category they select.
7. Craigslist Competitors
Craigslist competitors are websites which are similar to Craigslist in terms of features, but provide its services free of cost. Some of the competitors includes;
a) eBay classified-free classified advertisement online portal-This is an online classifieds portal which includes millions of listings in categories like jobs, cars, services, housing and pets.
b) Letgo-online classified advertisement-This is an online classified advertisement portal, where users can post any type of advertisement. They can choose from categories like housing, vehicles and other items.
c) Caravana-online classified advertisement portal-This is an internet classified advertisement portal that allows people to post an ad for free. The website provides free advertising services to its visitors.
d) Swappa-online classified advertisements-This is an online classified sale portal that allows people to sell their digital products, which are available through their mobile phones.
e) Zillow-online classifieds-This is an online classifieds sale portal which allows people to list their homes for sale or rent.
f) Marcari-online classified advertisement-The website allows users to post various classified ads in various categories like housing, services and goods.
g) Poshmark-online classified advertisement-The Company allows its users to sell items from their wardrobe online. It provides a platform for discussion, collaboration and payment on demand.
h) Indeed.com-online classified advertisement-This provides a platform for posting and listing jobs and other items for sale.
8. SWOT Analysis of Craigslist
a) Easy to Use-The website can be accessed easily without any barrier. It is very simple to use, giving the user an option to post an advertisement at a time and place which they want.
b) Mobile Friendly-The website can be accessed through mobiles, thus reducing time and effort required for promotion of an item in physical stores.
c) Diversity of audience-The website is used by people from various parts of the world. It attracts people by making them realize that they can find the right item at the right price.
d) Low cost-The website can be used to promote any type of product, at minimal cost.
e) Multiple Postings-Craigslist allows multiple postings, thus creating an option for advertisers to promote their items on different days and at different places.
f) Accessibility-The website can be accessed easily since it has an option to post an advertisement at the place where the user is. Thus, reducing time required for searching for items.
g) Free from Spam-This website allows only one post per person at a time. Thus, reducing spamming by people.
h) Website Maintenance-The maintenance of the website is done regularly, thereby maintaining its quality and also providing security from various kinds of viruses.
h) Backup System-The website has a backup system for all their data, in case a problem arises there is a backup available in case the old data is lost or damaged.
j) Profiles-The profiles are made available to users on the website, which allows them to have a profile which can be used for posting an ad, thereby facilitating them by sharing their photos, self-descriptions and contact information.
k) Community-The website attracts people by giving them a way to discuss items which can be of use or of interest.
a) Low Conversion Rate-The website has a low conversion rate. The reason for this is the fact that people are not interested in buying an item at the first place.
b) Confusion-The website sends people to different pages, causing confusion.
d) Short Supply of Advertising Services-The Company does not provide many advertising services which include banners on their site, servers and direct marketing among others.
f) Location Based-The website depends on the location of the users. For example, if the user is located in New Jersey, he can’t access any listings on Craigslist Los Angeles.
g) Less Targeted Traffic-Individuals post their advertisement based on location rather than category. This makes it difficult for them to target individuals who are into that category.
h) Low Brand recall-The website provides free advertising services, but it has a low brand recall which make it harder to grow since there are other competitors offering paid services.
i) No Branding opportunities for vendors-The website does not give any opportunity to vendors to enhance its brand.
j) Negative Perception-The website is perceived to be cheap among the people, making it difficult for them to grow since they are offering free services.
k) Unethical Practices-The website does not have any strict rules for ad posting, which causes people to post unethical advertisement leading to various problems. Thus, giving bad name to the company.
l) Time consuming-The process of posting an advertisement is time consuming. This implies that the users have to spend time in finding an item to be posted, registering and typing the advertisement.
m) Internet traffic-The website gets less internet traffic, making it difficult for people to post and search for items.
n) Fewer Categories-The website does not provide posting of numerous categories, which makes it difficult to find an advertisement.
o) Technical Problems-The website has problems like server error and running slow due to heavy traffic. These issues create difficulties in the growth of this site.
p) Search-The website provides an option of searching only within the city, which restricts people from searching items from other places. Thus limiting the growth of the site.
- a) Recruitment-The website has an option to post job advertisement for people looking for opportunities.
b) Deals-The users can get offers and deals by posting their products online at affordable rates.
c) Daily Deals-The website has the Daily Deals option which gives the users an opportunity to post products at a discounted price, giving them more profit.
d) Sale items-The website has the sale items option which gives the users an opportunity to build their business by posting their products online and attracting customers for their business.
e) Sales-The website has the sales option which gives the users an opportunity to post there item at a discounted rate.
f) Free Advertising-The company provides free advertising services, but has a low brand recall, providing an opportunity for vendors to improve their brands.
g) Competition-The website has a low competition level, giving the users an opportunity to build their business by posting advertisements online.
a) Overpayment-The website has an option of overpayment in case someone makes a mistake in posting and he/she receive money in return. This may cause vendors to use this opportunity to earn money illegally.
b) Technical Problems-The website has problems like server error and running slow due to heavy traffic, creating difficulties for vendors to post advertisements and customers to search for products.
c) Abusing Anonymity-Vendors are abusing the anonymity of the website to commit illegal activities.
d) No Contact-The website provides no contact information for people to contact them in case they face any problem or need assistance.
e) Less Targeted Traffic-Individuals post their advertisement based on location rather than category, making it difficult for them to target individuals who are into that category.
f) No Quality Control-The Company does not have any strict rules of quality control which makes the website look unprofessional.
g) Legal Action-Since the site has low brand recall, making it difficult for vendors to grow since they are free services.
h) Reliability-The site does not have any strict rules of quality control which makes it unprofessional, making it difficult for vendors to rely on them.
i) Fraud-The users are posting fraudulent advertisements online, making the website look unprofessional.
j) Suspicious Advertisement-Some users’ post suspicious advertisement on the site, giving the opportunity for vendors to report them to authority.
What is the purpose of Craigslist?
Craigslist is a free online classifieds site where buyers and sellers share items with each other in an environment that encourages privacy and safety.
What is the benefit of using Craigslist to sell items?
-With free online classifieds services like Craigslist, you can post your item with pictures for free.
-You will increase your chances of selling your item online.
-You will get many potential buyers for your item.
-You can fix problems with the items you are selling by posting it on Craigslist.
What are the advantages of selling items on Craigslist?
-Free online classifieds services like Craigslist give you an opportunity to share your items with many people.
-You can post your items easily and get many buyers for your item within a short period of time.
-You will be able to sell your item at a better price by getting more exposure on the internet.
Are people on Craigslist safe?
Yes, people on Craigslist are safe and they can be trusted since everyone is anonymous and all the advertisement and messages sent to each other are confidential.
What conditions should I consider before posting an ad in Craigslist to sell my items?
-Be concise when composing the post.
-If you have pictures of your items, make sure that they are of high quality.
-Check your spelling errors before submitting the item.
Is Craigslist legal?
Yes, the website is legal and everyone is anonymous.
Does Craigslist have posting limit?
Yes, Craigslist has posting limits. There are several posts that you can post in a day. Once you reach the limit of your post, you will get an error message.
How do I post items on Craigslist?
Click on ‘Post Your Item’ and then you will see your item posted instantly. To delete your item, click on ‘My Post’ below the post of your item and you will get a delete link to the item.
What is a classified advertisement?
A classified advertisement is a type of ad that has two categories: ‘product’ and ‘service.
How can I post a free advertisement in Craigslist?
To post a free advertisement, you should sign up on the website and register the items you want to post.
You should type your description and choose a category where you have to tag your item so that other users will easily identify it.
After posting the items, keep checking your account regularly to see if someone is interested in what you are selling or not.
What are the Craigslist risks to selling items?
There are risks that you can encounter from selling your products. -Vendors can take advantage if they post a fake advertisement on the website.
Sometimes a buyer will buy a used item and it will be broken within a short time after buying it, causing problems for the seller.
What is the purpose of posting items in Craigslist?
Craigslist is an online classifieds site where buyers and sellers share items with each other in an environment that encourages privacy and safety.
What is the purpose of the local services of classifieds sites?
To promote communication and communication among people in a specific city.
What is a person’s right to post an ad in classified advertisement services?
Anyone who wants to post an advertisement can do so. Craigslist makes it easy for people to post advertisements online when they are selling or buying items.