“60% of transactions are coming from customers who had made 5 or more transactions in the past”, Szulczewski told the audience. This is remarkable. Consumers are buying 60 items per year, he said. Wish sells two million items a day and is more than doubling GMV year over year. Wish has now 300.000 (mainly Chinese) vendors.
The company raised $500 million in their last round in November, which was on top of the first $500 million Wish raised two years prior.
That means Wish has $1 billion in the bank, and the company plans to use it to reduce shipping times, Wish CEO Peter Szulczewski said Tuesday night in an interview at Recode’s Code Commerce conference in San Francisco.
Wish sets itself apart by targeting customers with low-price goods such as dresses, watches, sneakers or jewelry shipped straight from Chinese manufacturers — but that also means delivery can take weeks and items sometimes arrive damaged.
“The shipping times are extremely long,” said Szulczewski. “It’s scaled and worked so far because the prices are so inexpensive.”
Wish sets itself apart from Amazon by focusing on discovery and treating its app more like a shopping mall that displays products the customer might want in a window instead of requiring people to type in a search query like on Amazon.
Wish, unlike the majority of today’s e-commerce -from eBay to Amazon-, is not driven by search but by design choices leading to serendipity. This, combined with those very low prices, is Wish in a nutshell. Wish is essentially a mobile flea market that is using today’s global possibilties: Chinese manufacturers, western customers.
Combined with an effective Facebook ad strategy, this has pushed Wish into many people’s minds. Interestingly, Wish concentrated on rural customers as the CEO said in his interview. Forbes:
Speaking onstage at the Code Commerce event at San Francisco’s Westfield Mall on Tuesday night, Szulczewski said that Wish, a mobile marketplace that sells cheap wares, has grown by focusing on customers outside of cities and Silicon Valley, a demographic that heavily favored Trump in the election. Expanding on a blog post he wrote last week, he noted that few venture capitalists had been able to understand his company, because they lacked relationships with the so-called “invisible half” of the country that shop on his service.
All this makes it not too far fetched to imagine Wish becoming a huge global marketplace player. Wish is certainly doing a lot of things right. If they can successfully build a logistics operation around what they have now, they have a winner on their hands.
Besides the main app, Wish has several thematic niche apps:
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