How Does Wish Make Money

The e-commerce app development industry is booming. Many companies are looking to branch into e-commerce, but it proves to be quite hard to find a good spot since this side of the industry is so overcrowded. However, there’s one app that stands out from the crowd, and that is Wish. Now, if you like to learn more about how to create an online shopping platform like Wish, you can do so by simply following the link.

However, today we are going to talk about something else. I’m certain that one question keeps popping up in your mind whenever you hear something about Wish. And that is: How do they make money? After all, their products are so cheap that it seems almost impossible to make any considerable profits if any profits at all.

Well, this company has many tricks up its sleeves. But, before revealing them, we need to take a deeper look and understand how Wish actually works.

How It Works 

We all know that Wish is an e-commerce app that sells pretty much anything you could ever think of. From clothes to all sorts of different household items and electronics. Anything you buy comes from the factory straight to your doorstep.

Wish acts as the middleman between you and the factories. Therefore, they do not store any of the products that are up for sale. Now, Wish is well known for taking its time in the delivery process. The delivery of goods can take up to a few months. But the thing is, transportation is cheaper for them this way.

Alright, now that we saw a bit of how this platform works, it’s time to find out how it manages to make profits.

  1. It’s Cheap 

Yes, it’s cheap for you, but Wish is the one who gets a better deal. We’ve previously mentioned that this platform gets you your goods directly from the factory. That’s the thing, there are no middlemen involved because they are the middlemen.

Wish collaborates with factories from countries such as China, Indonesia, and Myanmar. I guess you’re starting to see a link between these countries, and you’re right.

They all have a very cheap workforce, therefore their products come at a very low price as well. That’s how Wish manages to still make a profit even if they sell stuff so cheaply.

  1. Aggressive Marketing 

I’m sure you saw some of the ads from Wish while scrolling through Facebook or whatnot. Your first thought that they are freaky, bizarre, even outrageous. You might be asking yourself how can they do such a thing.

That’s how they actually manage to grab people’s attention, and it definitely looks like it’s working well for them. It’s a very similar tactic that other viral marketers do as well. They advertise something outrageous, that’s certain to trigger a shocking reaction to people that see the ads.

Therefore, these people will further talk about what they saw with someone else, effectively spreading the name of the company.

  1. They Charge Fees 

Besides taking a commission for each product a factory sells through Wish, this company has a few more ways to make some extra cash off of the manufacturers.

Wish charges merchants for extra services that they provide to ease the factory’s job. For example, Wish offers fulfillment services to manufacturers. Meaning that they can take care of storing and shipping the products for you, at a cost.

Not only that, but Wish has a campaign called “Product Boost”. The way it works is simple. If you want your product to be shown on top of the platform’s feed, you have to pay for it.

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