For e-commerce merchants, the pricing of products can determine the profit earned from each product sold. If the pricing is unreasonable, you may not be able to sell the goods or you may continue to lose money, so let’s learn about the profit margin algorithm of wish.
1. Wish profit margin algorithm.
If you are a self-operated seller on the wish merchant platform, you can calculate it based on the actual condition of the product. The gross profit is the gross profit after deducting the shipping fee, product cost, wish platform handling fee and withdrawal fee from the selling price of the product.
2. What is the general profit on the Wish platform?
How much profit there is depends on the sales of the store, but as long as you work hard and seriously, you will make a profit.
3. What are the factors that affect the profit of goods on wish?
1. Product cost.
Generally speaking, sellers do not produce goods, so they need to find OEMs or directly purchase finished products. These procurement costs and transportation costs are the cost of the product.
2. Product pricing.
Product pricing involves many factors, such as product procurement costs, market factors, competitor prices, etc.
Market factors: The impact on market supply and demand is very significant. For example, when a product becomes popular and supply exceeds demand, the price can be slightly increased; conversely, if product competition is extremely fierce and supply exceeds demand, the price It will naturally decrease accordingly. When similar products appear on the market and are about to replace them, you need to consider clearing inventory. At this time, the price of the product must be lowered.
Competitor prices: No matter what kind of product, sellers must understand each other. In many cases, competitor prices will be used as an important reference for pricing. However, some sellers lower their prices by giving away profits in order to pursue short-term profits, and some people who just started to blindly open stores have no choice but to use low-price promotions to attract customers and traffic.
Operating costs: It should be noted that the Wish platform charges a commission of 15% of the retail price, and the payment channel also needs to pay a 1% channel fee. This is a very important cost item, so sellers need Consider pricing your product so consumers can share this cost.
3. Product sales.
When you first open a store, promotion is very necessary. If the store has no reviews and no traffic, customers will not come to buy products. Therefore, the initial sales of the store are often greatly affected. After store sales stabilize, sellers need to rebrand their products and increase pricing appropriately.
The above introduction is related to the algorithm of Wish profit margin. To sum up, the calculation method of Wish profit is to use the selling price of the product to deduct shipping costs, product costs, Wish platform handling fees, and withdrawal procedures. fee, and the rest is gross profit.