The Synopsis
Article. The Future of Ecommerce That Wasn’t: An In-depth Look into What Went Wrong with Wish
Jan 26, 2024
This podcast discusses the failure of Wish, an e-commerce platform. It compares Wish's unique approach to Amazon's and analyzes the reasons behind Wish's failure, including ineffective advertising. The podcast also explores the factors contributing to Wish's success and downfall, such as their user acquisition engine and direct relationships with manufacturers. It addresses criticisms of low-quality products and slow shipping times. The struggles in attracting new shoppers and the impact of rising advertising costs are also discussed.
30:00
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Quick takeaways
- Wish's failure was not solely due to excessive spending on sales and marketing, but rather the inefficiency of their advertising strategies.
- The problems faced by Wish, such as selling cheap products and slow shipping, were not inherently fatal as demonstrated by successful e-commerce models like Pinduoduo and platforms like Etsy.
Deep dives
The Pitch for Wish as the Next E-commerce Winner
Wish was presented as a unique e-commerce platform, focusing on discovery, deals, and novelty. It aimed to serve a different market by offering an extensive range of items and leveraging a sophisticated algorithm to recommend products. Unlike Amazon, Wish targeted consumers who were looking for serendipitous finds rather than specific purchases. They also aimed to assist physical stores with merchandise procurement, enabling small businesses to stock their stores based on data and direct wholesaler connections. The appeal was that Wish offered a low-cost alternative to Amazon's sponsored ad approach, making it easier for merchants to stand out.
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