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Business Operations Business Models

How Does Zola Make Money (Business and Revenue Model)

The Zola business model

How Does Zola Make Money?
Here’s what you should know:
  • What is Zola, and how does Zola work?
  • How does Zola make money?
  • Percentage of Sales
  • Zola profit and revenue
  • What is the Zola business and revenue model?
  • Zola funding, net worth, and valuation
  • Zola subsidiaries, acquisitions, and exits

How does Zola make money if a lot of their services are free to use? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Zola business model, their profit and revenue, and how Zola works.

What is Zola, and how does Zola work?

Zola is an online wedding registry, wedding planner, and retailer that allows couples to create online registries for their gifts, experiences, and or cash funds.

Founded in 2013 by Shan-Lyn Ma and Nobu Nakaguchi, Zola has become one of the largest and most popular online wedding registries with more than 1,000 partnering brands and over 1000,000 products to choose from.

So, how does Zola work? To use Zola to create a wedding registry, users can start by first either downloading their mobile app from the Apple App Store or Google Play store; or visiting their website.

Once on the homepage, they can then navigate to the dropdown menu and click “Create Registry”. Zola will then ask them a few questions to help set up their registry and ask them to create a Registry Checklist.

After it’s set up, users can then copy and paste the registry’s URL they just created from their “account settings” page and add it to things like their website and or print it on save the dates cards, shower invitations, and wedding invitations.

Some of Zola’s competitors include Target, Amazon, Bed Bath and Beyond, and other retailers that have wedding registries.

Zola App in Apple App Store | Zola Business Model | How Does Zola Make Money? | How Does Zola Work?
Source: Apple App Store | Zola

How does Zola make money?

Zola offers over 1000,000 products from more than 1,000 partnering brands. So how does Zola make money off of all those products and partnering brands?

Below is a breakdown of how much money Zola makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Zola makes money in 2022

Zola has a revenue model that makes money in just one (1) way; by receiving a cut of the sales made through its online store.

#1. Percentage of Sales

Zola makes all of its money by taking a cut of all sales made through its website.

Like any other retail store, Zola sells the products of the brands it partners with through its (online) store. Which, to date, totals more than 1,000 brands and offers over 100,000 products that are in large part tailored to wedding registry type gifts.

So, how does Zola make money from these sales? Zola makes money off of two (2) types of purchases on the site; experiences and product sales.

Whenever a customer purchases an experience, such as a cruise or wine tour, through Zola, the company keeps about 20% of that sale. And when a customer purchases products, the company keeps up to 40% of the sale price, according to Zola.

Zola Fees:

  • Zola keeps about 20% from experience purchases; and up to 40% of product sales
Zola Fees | Zola Business Model | How Does Zola Make Money? | How Does Zola Work?
Source: WNW | Zola

Note: All of Zola’s services they offer are free; such as creating registries, building wedding ready websites, finding vendors, etc.

Zola profit and revenue

Zola has not released any official reports in regards to company earnings.

Note: Because Zola, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Zola business and revenue model?

Zola makes money through a few revenue models that they combine within their company, they are:

  • Commission based business model
  • B2B2C (partnerships) business model

Zola funding, net worth, and valuation

According to Zola’s Crunchbase profile, Zola has raised $190.8 million over 8 rounds and has a post-money valuation of $500 million to $1 billion as of May 3, 2018.

Zola subsidiaries, acquisitions, and exits

To date, Zola has not made any acquisitions, investments, or exits.