Dive Brief:
- Wish has launched an end-to-end small parcel delivery service, allowing shippers who don't sell on the e-commerce platform to use its logistics capabilities, according to a Nov. 15 news release.
- The WishPost Smart Parcel service taps into Wish's network of third-party carriers covering first mile, international linehaul, customs brokerage and last-mile delivery needs. In its initial phase, it will support shipments originating from China to key destinations such as the U.S., France, Japan and the U.K.
- “As a global online marketplace that works with an extensive network of sellers worldwide, we have made it our mission to build a world-class logistics network that can stand up to scrutiny,” said Bill Zhang, Wish VP of Global Logistics, in the release.
Dive Insight:
Wish is opening up its shipping capabilities to outside businesses as it pursues ways to turn around its lackluster financial performance. The company posted a net loss of $80 million in Q3 as its revenue fell 52% year-over-year.
Revenue from its logistics services for Wish merchants, focused on end-to-end shipping, saw a similar decline amid lower shipping volumes. Despite that drop, the majority of Wish's revenue this year has come from its logistics segment.
"Thanks to the hard work of the logistics team, our logistics operations have seen steady and material improvements in the past two years," said CFO and COO Vivian Liu in a Nov. 7 earnings call. "Nowadays, the majority of buyers in our top markets can expect to receive their orders within two weeks for holiday shopping."
Wish has pushed to increase its "time-to-door" delivery speeds to improve the customer experience, with that metric improving in Q3 by about five days year-over-year for six of its major markets, CEO Joe Yan said on the call.
"The continued progress in our average time-to-door in the major markets we serve also favorably impacted refund rates and customer experience," Yan said. "Specifically, our customer refund rates decreased by 9% year-over-year in the quarter."
While shipping speeds have increased, Wish's on-time delivery rate fell slightly to 91% in Q3 compared to 92% in Q2, per an investor presentation.
