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Discover Gumtree: The Online Marketplace for Buying and Selling Goods and Services

Gumtree: The Online Classifieds Marketplace

Are you in the market for new furniture, a used car, or perhaps a pet tortoise? Look no further than Gumtree, the online classifieds marketplace for buying and selling goods and services.

Today, we’ll provide an overview of Gumtree and how it works, including its unique revenue streams.

Overview of Gumtree

Gumtree was founded in 2000 by Simon Crookall and Michael Pennington, and its success has allowed it to expand globally. It’s now owned by eBay, but retains its independent identity.

Gumtree is a platform to buy and sell goods and services for businesses and individuals alike. From vehicles to electronics, home appliances, clothing, and much more, Gumtree has it all.

Services Offered by Gumtree

Gumtree provides users with a convenient way to buy and sell online. As a result, the online classifieds platform offers services such as advertising for individuals and businesses looking to sell their products or services.

Using Gumtree allows sellers to reach out to a wider market than traditional classifieds, which can lead to higher sales volumes. Buyers also enjoy more convenience, as they can purchase items with a few clicks of a button from anywhere.

Revenue Streams of Gumtree

Gumtree’s revenue streams provide insight into the platform’s business model. Gumtree, like many similar online platforms, generates revenue through fees and advertising.

For example, Gumtree charges listing fees for people and businesses that want to sell products on the platform. Additionally, Gumtree offers promotions to boost product visibility, which requires a fee by the product owner.

Moreover, Gumtree’s referral fees from partner businesses that work with their community-driven marketplace program, earning for every user they send their way who buys or sells something on Gumtree. The revenue is generated when buyers and sellers click on advertising often displayed in prominent banner ads.

How Gumtree Works

So how does Gumtree work? Let’s go over the steps:

Navigation and Account Creation: To start, navigate to the Gumtree website and browse the categories.

If you are interested in purchasing an item or selling an asset, you will need to create an account first. Register for an account by providing your information like username, password and email address.

Buying and Selling on Gumtree: Once you have set up your account, you can start browsing the online marketplace and find items you are interested in. If you find something you like, you can contact the owner through the messaging feature to inquire about availability, location, and payment options.

Retailers that opt for online ordering can have a delivery service as well. When it comes to selling, users can upload a description of their product or service, upload images of the item, provide location and price, and wait for the inquiries to come in.


Gumtree is an online marketplace that offers a wide range of products and services to prospective buyers. The platform’s success is evident in its revenue model, which relies on listing fees, product promotions, referral fees, and banner advertising.

If you are looking to buy or sell an item, Gumtree is a straightforward platform to use. It allows access to a great selection of goods, and it doesn’t hurt the wallet or business to start selling your items on this classified site.

Find your next treasure on Gumtree today!

Gumtree Company History

Gumtree, the online classifieds marketplace, has a storied history dating back over two decades. In this section, we’ll trace the company’s evolution from its founding to its present-day ownership under Adevinta.

Founding of Gumtree

In 2000, Michael Pennington and Simon Crookall founded Gumtree in London. The two were both working at Hambros Bank when they came up with the idea for the platform.

Pennington recognized a problem of loneliness in the city and thought Gumtree could help solve it by connecting people. Crookall saw a need for a social network that would also address people’s practical problems.

As a result, Gumtree originally had a social mission of helping people to connect over shared interests and solve practical problems. Later on, the company evolved and became more focused on facilitating e-commerce between users.

Growth and Acquisition by eBay

From its roots in London, Gumtree expanded into Australia in 2007, launching its online classifieds platform. By 2009, Gumtree was advertising job openings and marketing its services in the country.

That same year, the platform expanded further, moving into Canada where it launched Kijiji. A year later, Gumtree landed in the United States with the purchase of Kijiji’s biggest competitor, Craigslist.

During this period of growth, Gumtree attracted investors and caught the eye of multinational companies. By 2005, eBay saw the potential in Gumtree as an online marketplace.

The auction site operator acquired Gumtree for an undisclosed sum believed to be in the tens of millions of pounds.

Acquisition by Adevinta

In 2015, eBay revealed some of its plans to reorganize and streamline its operations and investment initiatives. The auction site operator wanted to focus more on its core capabilities, e-commerce platforms, and finding new opportunities to expand globally.

This led to a deal in which eBay sold its classifieds business, including Gumtree, to Adevinta in 2020. The deal was worth 9.2bn ($10.9bn), with the Competition and Markets Authority approving the acquisition in August 2021.

After the acquisition, Adevinta’s classifieds brands include Carsguide, Autotrader, and Shpock. Gumtree is also set to have an even more significant presence in the UK classifieds market and globally.

Gumtree’s Revenue Streams

Gumtree generates revenue through various channels, including listing fees, banner ads, and referral fees. Here’s a closer look at each of these revenue streams:

Listing Fees

Gumtree offers multiple tiers of listing fees based on the level of promotion required. The first is the “Plus” listing fee, which offers basic features such as the ability to upload up to 10 images.

“Featured” listings offer more features such as highlighted listings and top-of-the-page display. Finally, “Premium” listings offer top-tier promotional features, such as preferred display, and niche advertising.

Banner Ads

Gumtree provides banner advertisements and sponsored links to businesses looking to promote their brand or products on the platform. These ads are displayed across various pages throughout the platform, and advertisers are charged per impression (view) or per click on the advertisement.

Referral Fees

Finally, Gumtree earns revenue through referral fees, where partner-brand referrals are paid for the introduction of insurance products and services. Gumtree previously worked with Compare the Market Limited in offering car insurance services.

In conclusion, Gumtree has come a long way since its founding and has evolved into a household brand for online classifieds worldwide. Today, it stands out as one of the leaders in the industry with a business model that allows it to provide services and earn revenue through its many streams.

The acquisition by Adevinta is only a sign of the progress and recognition for the company.

Ownership of Gumtree

Gumtree has changed hands several times since its founding in 2000. The most recent change in ownership happened in 2020 when eBay sold its classifieds business, including Gumtree, to Adevinta for 9.2bn ($10.9bn).

In this section, we’ll take an in-depth look at Adevinta and what it means for Gumtree’s future.

Adevinta as the Owner of Gumtree

Adevinta is a global online classifieds company that operates across 16 countries. The company was established in 2019 as an independent public company and is headquartered in Barcelona.

Adevinta’s portfolio includes more than 30 digital brands, including, OLX Brasil, and DoneDeal. With its acquisition of Gumtree, Adevinta added one of the most established online classifieds brands in the UK to its portfolio.

Adevinta’s CEO, Rolv Erik Ryssdal, stated that the acquisition of Gumtree would strengthen Adevinta’s position as one of the leading global online classifieds companies. Gumtree’s significant foothold in the UK and Australia is instrumental in this effort.

With the acquisition, Adevinta can now leverage Gumtree’s loyal user base of over 16.5 million monthly active users in the UK and explore other opportunities worldwide. Adevinta plans to use the acquisition of Gumtree to expand its portfolio and improve its offerings.

The company has said that Gumtree will be an asset in its strategy of offering a broad range of digital services to its users and customers. The acquisition will also allow Adevinta to gain valuable insights into the UK and Australian markets.

A major benefit of the acquisition for Adevinta is that it now gains access to Gumtree’s technology, customer base, and data. Gumtree has been in operation for over two decades, so its technology and algorithms are mature.

By sharing this technology, Adevinta can improve its offerings in other markets and better target potential customers. Gumtree’s long-standing customer base is another valuable asset that Adevinta can leverage.

The company will be able to tap into Gumtree’s deep user insights to offer tailored services to these customers. The acquisition of Gumtree also improves Adevinta’s position as a leading player in the global online classifieds market.

Adevinta is already a major player, with more than 30 brands across 16 countries. It was ranked as the second-largest online classifieds company in the world in 2020.

With Gumtree now part of its portfolio, Adevinta is poised to become an even more dominant player in the UK and Australian digital advertising space. In conclusion, Adevinta’s acquisition of Gumtree has put the company in a strong position for future growth.

The combination of Adevinta’s global reach and Gumtree’s established brand and user base is likely to benefit all parties involved. It remains to be seen how the acquisition will impact Gumtree’s individual operations and the online classifieds market as a whole.

Nonetheless, it is clear that Adevinta’s acquisition of Gumtree has been a significant step in the company’s strategy to become the leading global online classifieds provider. In conclusion, Gumtree has come a long way since its founding in 2000, and its evolution has been marked by multiple changes in ownership and the addition of new revenue streams.

Gumtree operates as a global online classifieds marketplace that provides its users with a convenient way to buy and sell goods and services. Its acquisition by Adevinta has set the stage for a continuation of Gumtree’s growth and expansion into new markets worldwide.

The importance of online classifieds marketplaces will only continue to grow in the years ahead, and Gumtree is poised to be a major player in this space. With its continued leadership and growth, Gumtree is a fascinating company, and one that is worth keeping an eye on.

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