Gaming companies make most of their money from in-game purchases — digital items players buy to help them win or have more fun.
Last year, gamers were projected to spend $168 billon on such items. But once they move onto a new game, any unused items will be worthless. Players will be stuck with them.
Enter Gameflip. This marketplace enables users to sell (“flip”) their digital items to other gamers — a sort of “eBay for gamers.” In doing so, they can unlock the value of these assets within today’s closed gaming ecosystem.
Since launching in 2015, Gameflip has amassed six million gamers to its community. And the Gameflip app has been downloaded three million times.
There are more than forty million listings on its platform, and Gameflip’s marketplace has facilitated more than $140 million worth of transactions. Notably, the company has raised more than ten million dollars from professional investors, including Bullpen Capital, GoAhead Ventures, PlayNext, and LightBank.
Gameflip works like most other digital marketplaces. Users simply download the Gameflip app and sort through assets listed under categories like “Game Items,” and “Games.” There are even digital gift cards that can be used for individual games, as well as at retail stores like Target and Amazon.
Assets might include things like gems or tools used in various video games. Other assets might be credits a player can put toward purchasing additional items.
Gameflip generates revenue from buyers and sellers for each completed transaction. This includes collecting a buyer purchase fee of up to four percent, a seller sales commission of ten percent, and a seller cashout fee — i.e., when a seller withdraws funds out of his or her account, they’re charged a fee — of between one and two percent.
Recently, Gameflip appeared on Product Hunt, a website that showcases innovative technology products and services. The company was voted a top resource by Product Hunt’s community of experts, joining the ranks of successful businesses like Slack and Robinhood.
In 2022, Gameflip created Gameflip Omni, a digital storefront that expands on the idea of safe, seamless gaming transactions. But where as Gameflip’s original market facilitates transactions between consumers, Gameflip Omni connects consumers with gaming businesses.
Essentially, this storefront enables gaming brands, developers, and “influencers” to create, market, and sell digital gaming collectables and purchases to gamers.
There’s even talk of Gameflip creating a white-label solution — a white-label service is produced by one company and used by others under their own brand name — which will include features like account management, digital wallets, payment solutions, and fraud-detection systems.