Wish's stock price plummeted 27% in two days. Sellers: Drivers don't want to pick up the goods anymore

Wish's stock price plunged 20% last Friday and continued to slide on Monday, falling another 9% to close at $6.87 , a 27% drop in two days . Wish went public in December at $24 per share and reached a high of $31.19 on February 1. The company's stock price has now fallen by more than three quarters compared to its high .

The reason for Wish's stock price plummeted is still the reduction in revenue and the loss of users. Wish attributed the reason to the return of offline shopping. Similarly , Amazon , Wayfair and Etsy also reported lower-than - expected revenue.

However, Wish 's business has deteriorated dramatically. In a letter to investors, Wish CEO Peter Szulczewski acknowledged that more users were abandoning the app than expected.

“As vaccination rates increase and stay-at-home orders begin to ease, daily user activity and active buyers on our platform have declined more than we expected, particularly in our three largest markets - the United States, France and Italy,” Szulczewski said .

Wish said app installs were down 13% from the previous quarter , and the average time spent in the app per user was down 15%. All of this led to a 32 % drop in core marketplace revenue on the Wish platform from a year ago .

The decline in Wish traffic and orders is indeed something that sellers can clearly feel. According to sellers’ feedback, even if Wish is selling well, sometimes there are only a few orders or even no orders a day. "The traffic is no longer stable, it's just non-existent!" "There are so few orders that drivers don't even want to pick up the goods."

Scott Devitt, an analyst at Stifel Nicolaus , noted that Wish itself has some notable issues, including poor product quality control on its platform and longer-than-average delivery times for its products.

Wish said it is making some "significant changes" to the way it operates . The company plans to improve product quality, make the shopping experience more fun, improve app performance , and optimize the quality of its merchants and their products to retain customers.

Judging from Wish's recent actions, it is indeed trying to retain sellers and users. For example, it has implemented stricter crackdowns on misleading products, launched a series of new logistics plans to help sellers reduce logistics costs, and compensate for logistics costs incurred by returns. How effective these measures will be, we can only wait and see the feedback from Wish sellers in the future.

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