Wish Statistics & NetWorth: Is It Worth Investing In?
Sep 28, 22 | Ibrahim Imran
Today many people are looking for places to invest their money, time, and energy. However, they want to invest in places that make sense. Hence, if wish was ever on your list of “worth investing” this blog is for you.
We’ve gone ahead and mentioned the must-know wish statistics and net worth for you in this article. Also, we’ve concluded whether it is a good investment opportunity in the end. So go ahead and read through to obtain information that will help you make the right decision!
Wish Net Worth
Let's start off this article with wish net worth. When Jet.com was sold to Walmart in 2016, observers opined that in a market dominated by Amazon and eBay, there was no room for innovative ecommerce.
Wish was the most downloaded shopping app in the world two years later, and the third-largest e-commerce marketplace in the United States.
Wish began as a wishlist software, allowing users to build wishlists of their favourite things. Wish implemented a similar items option and began partnering with merchants to sell on the platform to help monetize the site.
It wasn't long until revenues from linked businesses outperformed the pay-per-click advertising approach by a significant margin. The site was redesigned as an ecommerce platform in 2013.
Wish was recognized for its low prices and knock-off goods from the beginning. It used a direct-to-consumer business model, which meant it had little control over the supply and quality of the goods it sent out.
This has resulted in claims of poor quality and counterfeit goods, which Wish has hitherto been unable to dispute. It has implemented some quality control measures in recent years, but nothing on the scale of Amazon or eBay.
Anyone who has used Wish knows that bargains are ingrained in the app's DNA. Some things are on sale for 98% of their original price, however it's difficult to know if they were ever on Wish for that amount.
Wish also offers a variety of freebies and coupons to its customers, frequently offering an item for free in exchange for the customer's payment of shipping. Prize draws and daily offers are held for users. The Wish store has about 300 million items, the majority of which are from China.
While Wish still has a negative connotation, it attracts a sizable audience. Every month, over 100 million users utilize the network, and income is expected to exceed $2 billion by 2020.
Deals are in the app's DNA, as everyone who has used Wish knows. Some things are on sale for 98 percent of their original price, but it's difficult to know if they were ever on Wish for that price.
Wish also offers a variety of freebies and promotions to its customers, frequently delivering an item for free in exchange for shipping. Prize draws and daily promotions are offered to users. The Wish store has around 300 million items, with the majority of them coming from China.
Despite the fact that Wish still has a negative connotation, it attracts a sizable audience. The site is used by over 100 million individuals every month, and income is expected to exceed $2 billion by 2020.
Looking for an exact number for wish net worth? Well, wish raised $1.1 billion in an initial public offering in December 2020, valuing the firm at $17 billion. Now that we have covered wish net worth, lets move on to the wish statistics you need to know!
Wish Statistics You Should Know
Wish's revenue isn't near to Amazon's, and CEO Piotr Szulczewski's goal of becoming the "second or third trillion dollars a year marketplace" is still a long way off, but it has added a new dimension to online buying that Amazon has aped with Prime Day.
Wish may aim to mimic some of Pinduoduo's features in the near future, as the Chinese company runs a comparable direct-to-consumer business. The most popular feature of Pinduoduo is team buy, which allows numerous people to purchase an item and receive it for a reduced price. This has not been tested in the United States and is consistent with Wish's core brand.
Here are some key wish statistics to know about;
- Wish made $2.5 billion in revenue in 2020, up 31% from the previous year.
- Wish's net loss increased from $129 million to $745 million in 2020.
- Wish has almost 500 million registered members and over 100 million monthly active users.
- On the Wish platform, over 500,000 merchants sell their wares.
How Quickly is Wish Growing?
Shoppers created wish lists on Wish's app, which were then matched with retailers. Wish turned its app into a full-fledged e-commerce marketplace in 2013, connecting sellers and shoppers.
Wish now makes the majority of its money through the transaction, advertising, and logistical fees. Its ads sold products on Wish's marketplace as well as on external social media platforms, and it uses its own logistical services to complete cross-border orders.
Wish's revenue increased 10% to $1.9 billion in 2019, and then increased 34% to $2.5 billion in 2020. These were respectable growth rates, but other e-commerce businesses developed at considerably greater rates during the pandemic.
Amazon's (NASDAQ: AMZN) third-party seller services revenue is anticipated to increase by 50% to $80.5 billion in 2020. The year before, revenue for Shopify (NYSE: SHOP) more than quadrupled to $1.7 billion, while revenue for Etsy (NASDAQ: ETSY) actually increased to $2.9 billion.
Wish's sales increased by 75% year over year to $772 million in the first quarter of 2021, but it was simple to compare it to the disruption of its business caused by the pandemic a year ago. Analysts predict revenue to rise only 24% to $3 billion for the full year.
Is It Worth The Investment?
Wish is still developing, but it has three major flaws. First, despite ongoing efforts to bring more American, Latin American, and European sellers to the mix, the majority of its half-million merchants are based in China.
Wish's reliance on Chinese suppliers has resulted in several complaints regarding counterfeit goods and lengthy order and return processing periods. It also puts it at risk of increased tariffs and an ongoing trade war.
Second, Wish attracts customers with discounts and flash sales, and it covers a large portion of its cross-border costs with its own shipping services. As a result, it continues to be extremely unprofitable.
Wish's net loss fell from $208 million in 2018 to $129 million in 2019 but soared to $745 million in 2020 due to a 39% increase in operational expenses to $2.2 billion. The company's adjusted EBITDA loss increased to $217 million from $127 million.
Wish's net loss nearly doubled year over year to $128 million in the first quarter of 2021, while its adjusted EBITDA loss extended from $51 million to $79 million. Analysts predict that it will continue to be unprofitable for the foreseeable future.
Last year, Amazon, Shopify, and Etsy were all profitable according to GAAP. As a result, investing in the unprofitable underdog makes no sense when its higher-growth counterparts are already profitable.
Wish appears to be attempting to emulate Pinduoduo's worldwide discount business model. Wish, on the other hand, is developing at a considerably slower rate than Alibaba, and its significant reliance on sluggish cross-border sales could limit its entire addressable market.
Wish's stock may appear inexpensive at 1.7 times this year's sales, but it's only worth roughly a third of what it was when it went public since it's severely unprofitable, its revenue growth is slowing, and its MAUs are scattered too unevenly over the globe to make it a household name like Amazon or Shopify.
Interested and Need Help?
If you're interested in investing in Wish stock, we've already provided you with the information you need. However, if you're interested in getting your hand in the game and developing an app that can operate as an ecommerce platform, visit Distinguished.io and connected with the best mobile app development companies!
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