Wish parent ContextLogic Inc.’s
Chief Financial Officer Rajat Bahri says that customers longing for a better experience with the Wish mobile shopping app are getting it, thanks to improvements the company has made to different parts of the platform over the last couple of years.
Bahri says the company has taken action, and will continue
to do so.
“Consumer complaints tend to be around logistics. We’ve been working on this the last two years,” he told MarketWatch after the initial public offering on Wednesday.
“Two years ago there was no visibility on how merchandise
was sent. Now 90% of products are going through our platform. So we feel we
have now found a solution.”
Bahri says the company has also hired “hundreds of agents across the globe to address these complaints.” Customers can ask for “an immediate refund” for an item.
Wish has gone public at a time when e-commerce is surging,
with new shoppers heading online and more people buying a wider variety of
However, the company is facing competition from more established retailers, like Amazon.com Inc.
and Walmart Inc.
that are known for quick delivery and other convenient perks.
One of the risk factors that Wish identified in its
prospectus has to do with customer experience.
“If we are unable to promote, maintain, and protect our
brand and reputation, and offer a compelling user experience, our ability to
attract new users and engage with our existing base of users will be impaired,”
the company wrote.
Wish has 100 million monthly active users in more than 100 countries, and more than 500,000 merchants selling 150 million items.
Wish aims to offer an affordable shopping option to the one billion-plus households around the world that it says have an income of less than $75,000 per year, a demographic the company says has been ignored by e-commerce companies.
Retailers that specialize in low-price items tend to steer clear of e-commerce. Burlington Stores Inc.
for example, pulled the plug on its e-commerce platform this year, explaining that, with an average unit retail (AUR) of $12, it was impossible to be successful online.
Bahri says the answer is data science; the more data the
company collects, the better its recommendations and the more it has been able
to scale and the more things customers will buy.
“As you get more data, the better you get,” he told
MarketWatch. “That becomes a competitive moat.”
In emerging markets across places like Latin America and Africa where many people access the internet on mobile phones, the company says many of its customers are new to e-commerce. But the company sees itself growing across all markets, and it is adding merchandise in an array of categories so shoppers can more easily find whatever they’re looking for.
“We want Wish to become a default place where you can shop
for everything,” he said.
Wish closed its first trading day at $20.05 after pricing late Tuesday at $24. Shares bounced back more than 13% on Thursday.