Analysis of profit potential of Wish cross-border e-commerce platform
To understand whether the Wish platform can be profitable, here are some key points for reference:
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Brand Protection and Consumer Rights
Wish severely cracks down on counterfeit products and shoddy goods, and actively responds to reports from brand owners. This has resulted in some merchants being penalized for non-compliance, such as having their fees deducted or being suspended. This phenomenon reflects that Wish attaches great importance to the rights and interests of buyers and protects patent rights. It also strengthens the requirements for merchants to sell product standards. -
Sales Record and Platform Penalty Policy
Wish imposes penalties on products that have sales records within eight days but have been discontinued. This policy change was adjusted from the previous seven days to eight days to protect the platform’s traffic resources and improve customer purchasing experience. This is a measure taken by Wish to build a good buyer experience. -
Price Change and Refund Policy
Wish adjusts prices at will during operation and frequently encounters refund issues, which puts sellers in a difficult position when appealing. This situation leaves many sellers feeling helpless, as the platform seems to be overly supportive of buyers’ refund requests. -
Market competitiveness
Unlike Amazon, eBay and AliExpress, Wish has risen rapidly in the cross-border e-commerce market, partly due to its business strategy that meets user needs. Wish’s low-threshold application conditions allow both individuals and businesses to join, but the product approval process is relatively strict. -
Management and Technical Issues
Wish relies solely on data for management, which in some cases leads to management deficiencies. Despite certain technical advantages, Wish still has some weaknesses in business processes and seller management, which may affect merchants’ profitability. -
Platform transparency and accountability
Wish’s operating rules and standards are often not complete and transparent enough, causing the platform to protect buyers more and ignore the interests of sellers when handling the relationship between buyers and sellers. Many sellers have reported that the Wish platform will modify product prices and shipping costs without prior notice, causing sellers to suffer financial losses. -
Summary
Although the Wish platform has problems in many aspects, for cross-border e-commerce giants, there are still opportunities to achieve profitability due to the large market size and relatively good operating environment.