In general, Wish's catalog has products at really affordable prices. In fact, this has become the main reason why the platform has become so popular among users. According to the company itself, there are over 500 million people from 50 different countries with a Wish profile. How is it possible for this application to offer such low prices?
There are several reasons to consider when answering this question:
- Wish is only a middleman. When a user purchases a product on this platform, an order is placed directly with the manufacturer or distributor. This is responsible for preparing and shipping the product. In return, Wish receives a percentage of the total sale price. In this way, it does not need large facilities to store the products, nor does it have a merchandise distribution network, as is the case with Amazon. In reality, Wish is just an online catalog that puts manufacturers in contact with the end-user.
- It is advertised on major social networks. ContextLogic, Wish's owner, is Facebook's largest advertiser, spending more than $100 million annually. Thanks to this, and to the possibility of segmenting the advertising displayed according to the interests of each user, Wish can have a high sales flow thus maintaining profits, even by offering such low prices.
- The products offered are really cheap. Most of Wish's supply comes from China, a country where manufacturing costs are lower. Also, many of the products shown in the Wish catalog are imitations or poor quality.
After this analysis, it is very clear why Wish can offer such economical prices on most of the products it distributes.