RE: Worth a read if you haven't seen it2 Dec 2025 07:25
Good reply to this article, from James Marshall :
"Weshop will earn, over time and as they monetise and grow, somewhere between 11-15% of GMV. This is split roughly 50% commission from the retailers (Some high % like hotels some low like supermarkets) and 50% from advertising and monetising the data (ie they know what people search for, etc).
- If they earn 11-15% and pay away in share value 5-9%. 1/ They keep all the cash in the business (and valued on a cash generation multiple) 2/ Have the option to buy back all the shares they issue and still keep the difference between say 9% and 15% ie 6%.
- GMV could be huge (Amazon do $1.5bn a day) so even buying back all the shares ie no dilution at all 6% of GMV is a huge amount of cash. Weshop runs off the back of all the retailers infrastructure (and think other products like insurance, etc) so unlike say Amazon don’t need to buy huge warehousing or expand distribution, etc as they grow. So opex cost small as a % of GMV.
- So long term have an option to run the business with no dilution and still generate huge cashflows. Short-term issue some shares but will be a lot lower than you might think as more people using Weshop creates more cash generation and higher valuation, all very visible to the market. Almost like the Holy Gail of business models.
- That is why listing on Nasdaq and having a currency ie the shares that WeShop give to the users was critical.
- If they get it right those using it early will do extremely well (look at those companies share prices that have in these sectors)
- I am hoping they have big partnerships for promotion when they launch the app in America, and America definitely has a population that is engaged with shares.
- With a fair wind they could easily have 1m users in the US in short time. Annual spend for each would $2-5k a year. Big GMV number"
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