Yunji operates a social e-commerce platform in China that sells consumer goods — primarily health, beauty, and personal care products — through a membership-based model. Members are incentivized to share and promote products within their social networks, earning cash rewards or platform credits when their referrals result in purchases. Yunji acquires customers almost entirely through word-of-mouth referrals from existing members, rather than traditional advertising. The platform generates roughly 83% of revenue from direct merchandise sales, where Yunji sources and sells products on a gross basis, and roughly 17% from a marketplace business where third-party merchants sell on the platform and pay Yunji a commission. Membership is central to the model: members gain access to curated products and referral incentives, and are supported by a network of over 117,000 service managers who help members create promotional content and drive sales. Yunji has narrowed its product focus to two pillars — organic health and premium beauty — and has significantly reduced its SKU count to concentrate on high-margin, high-repurchase products. Yunji also sells private label products, including its SUYE skincare brand, through external channels like Tmall and Douyin. Gross margins have improved to roughly 47–49%, driven by a shift toward private label products. Key cost drivers include referral incentive payments to members, fulfillment costs, and service manager fees. Yunji has been loss-making in recent years, and management is targeting breakeven through continued mix shift toward higher-margin products and operating cost reductions.