As Shein and Temu Continue to Grow, Wish Turns to 3rd-Party Logistics as Survival Tactic

ContextLogic, the parent company of discount shopping app Wish, has launched a new third-party logistics service for non-Wish merchants called WishPost Smart Parcel.

Wish’s goal for what it’s calling its new logistics-as-a-service (LaaS) product is to help merchants that don’t sell on Wish tap into the infrastructure the company has built for its own marketplace, enabling efficient shipping from Chinese manufacturers to points around the world. At launch, WishPost Smart Parcel supports shipments from China to destinations in the UK, France, Germany, Switzerland, Belgium, the Netherlands, Japan and the U.S.

The move represents a new tack for Wish, which for several years has been trying to draw consumers back following significant declines in users. Those efforts have been thwarted by the meteoric rise of Shein and Temu, which offer consumers a similar discount proposition while solving for many of the problems that caused users to abandon Wish.

Despite efforts to improve its standing with consumers — such as a rebrand and marketing blitz, the introduction of flat-rate shipping and an expansion of its click-and-collect network — the Wish business continues to experience “unprecedented headwinds from intensified competition in the industry,” as CFO/COO Vivian Liu put in in the company’s Q2 earnings call in August. What to do when you can’t beat the competition despite your best efforts? Enter a different race altogether.

“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, VP of Global Logistics at Wish in a statement. “The launch of WishPost Smart Parcel marks a significant milestone in our journey as we deepen our investment in our logistics capabilities in order to broaden the impact of our top-tier service that combines unbeatable value with speed.”