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Why Wemakeprice's Business Model is so successful?

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Wemakeprice’s Company Overview


Company Description: Wemakeprice Inc. is a leading South Korean e-commerce company founded in 2010. The company operates an online open market platform that offers a wide range of products and services such as electronics, fashion, beauty products, and travel packages, among others. Wemakeprice is dedicated to providing an efficient and convenient shopping experience for its customers, offering competitive prices and a diverse selection of products. The company has established a robust online presence and has grown significantly since its inception, becoming one of the top e-commerce platforms in South Korea.

Business Model: Wemakeprice operates under a business model that focuses on connecting sellers and buyers in an open market platform. The company provides a platform for sellers to list their products and services, and for consumers to browse and purchase these offerings. The business model is customer-centric, with a strong emphasis on providing high-quality products at competitive prices. Wemakeprice also invests heavily in technology and innovation, continually improving its platform to enhance user experience and efficiency. The company also utilizes data analytics to understand consumer behavior, which helps in product recommendation and personalization.

Revenue Model: Wemakeprice's revenue model primarily consists of commission fees from sales made through its platform. The company charges sellers a percentage of the transaction value each time a product or service is sold. The commission rates vary depending on the category of the product or service. In addition to commission fees, Wemakeprice also generates revenue through advertising. Sellers can pay for promotional services to increase the visibility of their products on the platform. The company’s diversified revenue streams ensure a steady flow of income, enabling it to continue investing in platform enhancements and customer service.

https://front.wemakeprice.com/main

Headquater: Seoul, Korea, East Asia

Foundations date: 2010

Company Type: Private

Sector: Consumer Services

Category: eCommerce

Digital Maturity: Digirati


Wemakeprice’s Related Competitors



Wemakeprice’s Business Model Canvas


Wemakeprice’s Key Partners
  • Internet platforms developers
  • Affiliated companies
  • Delivery services
  • Advertising agencies
  • Partners
  • Investors
Wemakeprice’s Key Activities
  • Marketing
  • Logistics
  • Operations
  • Customer Service
  • Management
  • Finance
  • Traffic
  • Vendor management
  • Purchase
Wemakeprice’s Key Resources
  • Wemakeprice is South Korea's online destination
  • More than 10.000.000 registered users
  • More than 100.000+ Active daily deals
  • Real-time promotions
  • Big data
  • Data analysis
  • Financial Resources
  • Technological Resources
  • Legal Resources
  • Facilities
  • Employees
  • High traffic of visitors
Wemakeprice’s Value Propositions
  • To create a new business model of win-win partnership for both businesses and customers
  • To enable people to share life with affordable price
  • Purchase clothes, accessories, Bags, Beauty and much more at a price you can't help shopping
Wemakeprice’s Customer Relationships
  • Cheap price
  • Time limited deals (The deals go to the user’s email)
  • Wemakeprice has a large pool of customers who have already given their explicit approval to receive such information
  • Recommendation
  • Wemakeprice offers the ability to customers to get a refund unless the product is used or damaged
  • Ordinary life discount
  • On the main page, Wemakeprice customers can find the most popular products selected by the company, and the event information is continuously exposed
  • Consumption discount
Wemakeprice’s Customer Segments
  • Consumers
  • Retailers and Sellers
Wemakeprice’s Channels
  • Website
  • Traditional stores
  • POP Store
  • Mobile marketplace
  • Marketplace app for iOS
  • Android
  • Customer Service
  • Social networks
  • Weekly deals e-mail alerts
  • Teleperformance
  • Broadcasting
  • Auction
  • Lottery
  • Telemedicine
  • SNS Marketing
  • Data Insights from Companies
  • DMP
  • Advertising
  • Big data marketing
  • Digital marketing
  • Culture product
  • Homes
  • Travel
  • Beauty
  • Daily Necessities
  • Gourmet
  • Kids
  • Leisure
  • Sports
  • Education
  • Digital Goods
  • Health
  • Furniture
  • Gifts
  • Apparels
  • Moms and baby products
Wemakeprice’s Cost Structure
  • Technology infrastructure
  • Marketing
  • Customers service
  • Offices
  • Employees
  • The company has and continues to expand its social service team
  • Communication teams
  • Logistics team
Wemakeprice’s Revenue Streams
  • Discounted product sales group-buying commission on deals and on each coupon sold
  • Advertisements
  • Wemakeprice is the most visited online commerce platform in Korea and its website receives more than 5 million visitors daily

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Wemakeprice’s Revenue Model


Wemakeprice makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Affiliation
  • Cash machine
  • eCommerce
  • Layer player
  • Customer data
  • Long tail
  • Two-sided market
  • User design
  • Spectrum retail
  • Curated retail
  • Customer data
  • Hypermarket
  • Conversational commerce
  • Easy and low cost money transfer and payment
  • Micro-segmentation
  • Fractionalization
  • Channel aggregation
  • Referral
  • Sustainability-focused
  • Unlimited niches
  • Corporate innovation
  • Online marketplace
  • Group buying
  • Discount club
  • Advertising
  • Customer loyalty
  • Digital
  • eCommerce
  • Cross-selling
  • Dynamic pricing
  • Customer relationship
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Wemakeprice’s Case Study


Wemakeprice's Case Study

As we delve into the vast universe of e-commerce, one standout star catches our attention: Wemakeprice, a South Korean company that has successfully established itself as a major player in the online retail world. The company's ascent since 2010 has been nothing short of remarkable, reflecting a unique amalgamation of innovative strategies and customer-centric policies. Let's explore the inner workings and key factors that make Wemakeprice a powerhouse in the e-commerce sector.

Inception and Growth

Wemakeprice was founded in 2010, with an ambitious vision: to create an online marketplace that offered a wide array of products and services at competitive prices. The company's initial focus was on providing incredible deals and discounts, a strategy that quickly garnered a dedicated customer base. According to a report by the Korea Internet & Security Agency (KISA), the e-commerce market in South Korea was valued at approximately $104 billion in 2020; a significant portion of this market share belongs to companies like Wemakeprice, which have capitalized on the increasingly digital landscape (KISA, 2020).

Business Model and Revenue Streams

Wemakeprice operates as an open market platform, connecting sellers and buyers without the necessity of maintaining an extensive inventory. This model is customer-centric, leveraging advanced technology to facilitate seamless interactions. At the heart of Wemakeprice's success is its dual revenue streams: commission fees from sales and advertising revenue. According to the company's financial disclosures, commission fees vary depending on the product category, but typically range from 5% to 15% of the transaction value (Wemakeprice, 2022). Additionally, sellers can opt for promotional services to enhance product visibility, further boosting potential sales. Another cornerstone of its business model is data analytics. By analyzing customer behavior, Wemakeprice offers personalized product recommendations, increasing the chances of a purchase. A Carnegie Mellon study highlighted that personalized recommendations can enhance conversions by up to 15% (Carnegie Mellon, 2019). This strategic use of data not only drives revenue but also enhances customer satisfaction.

Technological Advancements

One distinctive feature of Wemakeprice is its heavy investment in technology and innovation. Real-time promotions and customized deals keep the platform dynamic and engaging. With more than 100,000 active daily deals and a user base exceeding 10 million, the company handles massive amounts of data daily. As per a study by McKinsey, companies that leverage big data analytics effectively can see profit increases of up to 60% (McKinsey, 2021). This technological prowess is evident in Wemakeprice's ability to offer time-limited deals and real-time customer service, attributes that differentiate it from competitors.

User Experience and Customer Relationships

Wemakeprice focuses heavily on building meaningful customer relationships. From offering cheap prices on frequently updated deals to ensuring easy refunds for unsatisfactory products, the platform is designed to cater to customer needs comprehensively. Wemakeprice has also introduced unique features like group buying and dynamic pricing, which not only enhance the shopping experience but also foster a sense of community among users. According to an internal company survey, 75% of respondents stated that they prefer Wemakeprice over other platforms due to its user-friendly interface and competitive pricing (Wemakeprice, 2021). Furthermore, customer loyalty is bolstered through regular communication and personalized offers. Wemakeprice’s extensive email marketing campaigns keep users informed of new deals and events, ensuring a constant flow of traffic to the platform.

Social Impact and Customer Needs

Understanding customer needs goes beyond just selling products; it encompasses social and emotional dimensions as well. Wemakeprice strives to deliver value in more areas than just commerce. By emphasizing rewards, design aesthetics, and entertainment, the platform not only simplifies the shopping process but also makes it enjoyable. According to a PwC report, 73% of consumers point to customer experience as an important factor in their purchasing decisions (PwC, 2019). Additionally, Wemakeprice's business model addresses life-changing needs, such as a sense of affiliation and belonging, through features that encourage community interaction and shared experiences.

Unique Selling Propositions

Wemakeprice's unique selling propositions (USPs) lie in its win-win partnerships for both businesses and customers. The company's ability to offer a diverse selection of products – from electronics and fashion to travel packages – at unprecedented prices sets it apart in the competitive e-commerce landscape. Moreover, its real-time data capabilities, coupled with a high volume of active daily deals, create an unparalleled shopping experience. This is underpinned by a robust technological infrastructure that ensures seamless user engagement, making Wemakeprice a go-to platform for millions. In its decade-long journey, Wemakeprice has not merely adapted to market needs but has proactively shaped them. With more than 5 million daily visitors, Wemakeprice’s website remains one of the most trafficked online commerce platforms in Korea (Statista, 2022).

Conclusion

Wemakeprice's journey from a fledgling startup to a top-tier e-commerce platform embodies the virtues of innovation, customer centricity, and strategic foresight. Its ability to harness the power of technology and data analytics, while consistently offering value to both sellers and buyers, serves as an exemplary model in the digital commerce landscape. As Wemakeprice continues to grow, its commitment to enhancing customer experience and leveraging cutting-edge technology ensures that it will remain a formidable player in the global e-commerce arena.


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