How to effectively price products on the Wish platform: Algorithm and stage analysis

On the Wish platform, sellers need to carefully calculate various costs and expenses to formulate a reasonable product pricing strategy. The core of product pricing includes multiple variables, such as product cost, platform commissions, and shipping costs. According to the pricing method of Wish stores, in addition to the cost of the product itself, sellers need to consider that Wish will charge 15% of the retail price as a commission, a 1% handling fee paid to the payment channel, and potential return costs.

Consider costs as appropriate

When pricing, sellers can use the following formula to calculate the retail price of a product:

[ text{Price} = frac{text{Product cost} + text{Incoming freight expense}}{1 – text{Profit margin}} ]

To illustrate with a specific example, if the purchase price of the product is 18 yuan, the net weight of the product is 0.185kg, and the freight (for example, 80 yuan/kg when shipped to the United States through e-mail) is calculated as 23.8 yuan, overall Say, the seller’s calculation steps are as follows:

1. The product is intended to be priced at $12, with a partial exchange rate set at 6.32.
2. The profit calculation formula is: profit = 12 × 6.32 × (1 – 15%) – 23.8 – 18 – In addition, other costs.

Pricing stage analysis

After determining the pricing formula, the seller needs to adjust the pricing strategy according to the different life cycle stages of the product. Products at different stages require different pricing methods:

1. New product launch stage:

   • In the early stages of opening a new store, you may face a lack of competitiveness when uploading products. At this time, sellers can moderately reduce profit margins to increase sales and exposure.

2. Product growth stage:

   • As a product goes online and receives positive reviews, sellers can choose to continue to lower prices to maintain good sales and attract new customers.

3. Product maturity stage:

   • When a product’s sales, traffic, evaluation and other indicators reach a high level, sellers can use the store’s popularity to appropriately increase prices and reduce price sensitivity.

4. Product Decline Stage:

   • With the emergence of new products on the market, original products may face a drop in demand. At this time, pricing needs to be quickly reduced to clear inventory and prepare to develop new products.

To sum up, Wish’s pricing strategy includes a series of complex cost calculations and market analysis. Sellers need to rationally use these tools and strategies based on their own circumstances to optimize the store’s profit model.