Zola is a service provider and middleman for all things weddings. It was founded by Shan-Lyn Ma and Nobu Makaguchi in 2013. With less than a decade of running, it is considered one of the best wedding registry companies ever.
Why Do Couples Love Zola?
Zola wouldn't make money if it weren't as beloved as it is. With Zola's financial avenues, it is clear that Zola is a favorite among the engaged crowd.
- Its personalized services include invites, gift cards, registries, and guest lists.
- Expert advice from wedding professionals such as wedding planners and event organizers.
- Free shipping.
- Under-one-roof product catalog that has everything wedding-related.
Its services are varied and numerous, ranging from wedding planning to registries to being a retailer. They include:
- Curating gifts and gift cards for guests to purchase.
- Booking wedding and reception venues.
- Providing a wedding website where couples can track the event's proceedings.
- Creating personalized invites and RSVPs.
- Free wedding checklist.
- Seating charts.
- Wedding registry.
- Vendor sourcing, whether for food, décor, or disk jockeys.
- Social media handling, such as creating a couple hashtag for the wedding.
- Booking honeymoons.
Zola digitizes a once very traditional event and makes couples avoid the hassle of stressful planning. Zola appeals more to Millenials because of its online approach; couples can access everything they need (including third-party sources, such as Amazon) at the tap of a button.
However, with all these services, which are practically free and accessible by anyone just by an online search, how does Zola stay afloat, financially, of course?
All businesses must make revenue and profit for them to remain in business. Zola's financial statistics prove that it is not struggling in any form, which means that its flow of income is steadily increasing. For instance, Zola has partnered with over 600 renowned brands since its inception. It is valued at an astounding $650 million.
How Does Zola Make Money?
Here are some of the ways it makes money:
Selling products
Zola has a variety of products and packages available to its clients. Not all items on the website are free; some require payment. An apt example would be gifts and gift cards. When wedding guests and gift-givers shop through the website, Zola earns a percentage of the total cost – about 40% of the sale of physical products. It makes 20% of all services provided through its site.
Since Zola acts as a middleman during sales, it can source the most affordable (and high-quality) products and services. While making these sales, the manufacturer retains 60% and the service provider 80%. These rates change over time and vary from service provider to service provider.
Zola has sold over 100,000 physical products. Its gift sets are unique and provide value for money. It has served over 500,000 couples since its launch and continues to grow in popularity, especially in this digital age. Its annual revenue grosses up to $120 million. A considerable percentage of these sales comes from selling wedding products and services.
Branding
Zola weddings are popular with Millenials. Imagine a curated and personalized wedding and honeymoon in front of your screen, with no hassle whatsoever. No chasing deadlines or begging service providers to supply what you agreed upon. Just by the services Zola provides, clients gain trust in the brand.
This trust encourages clients to continue referring their friends and family to enlist Zola's services in their events.
Zola's website is incredibly arranged so that any visitor who intends to get married soon will immediately contact them for their services. Branding is a powerful tool, and Zola has used it to their financial advantage.
Smaller overhead costs
Online e-commerce websites incur low overhead than brick-and-mortar stores. They do not have to pay rent, electricity, and water bills. Zola's online store saves on a lot of money that would have otherwise been used to cover these costs.
Saving is an asset. It may not directly impact Zola's profits, but it reduces expenditure.
Further, Zola serves its clients with products directly shipped from the manufacturer. Therefore, it needs no inventory. All these factors ensure that Zola continues to make a clean profit with minimal overhead costs.
Cashback
Though Zola categorically claims that they do not earn from this source of income but that it is used to cover transactional costs, it is also true that some of this money remains as surplus. When a couple decides that they want cash instead of gifts, Zola obliges but charges a 2.5% fee of the total.
Impulse buying
Zola's one-stop feature, such that clients can purchase all they need for their weddings from the same single site, significantly brings in more clients. It also ensures that the current clients purchase what they need and even more than they need.
An e-commerce platform encouraging impulse buying will mostly have products arrayed in visual beauty without cramming up the page. Zola's website does just this. With unique services such as gift tracker to free shipping, Zola does well to ensure the current customers stay and new ones keep coming.
Key Takeaways
Zola is a couple's favorite. It has proven that wedding planning doesn't have to be strenuous. It could be a fun and enjoyable activity for couples. This simplistic style appeals to clients, who convert their approval into sales and profits.
With other fantastic services such as a price matching policy and price adjustments, Zola will continue to rise financially. Weddings never end, and so Zola's target audience will only grow from here. Its money-making channels are likely to steadily rise, as it provides both a timely and convenient service.
Also, and very important, Zola involves other parties, such as gift-givers and wedding guests, with the opportunity to interact with the site and see the services available, hence being a form of advertising through referrals and word-of-mouth. This ensures clients keep coming, which means Zola only makes more money.
