The information in this article is specific to merchants based in and shipping from Mainland China. Merchants based outside of Mainland China should refer to “Flat Rate Shipping FAQs.”
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- Advanced Logistics Program for Flat Rate Shipping Orders
- New Flat Rate Shipping Page
- Calculation for Displayed Product Price
- Gross Merchandise Value (GMV), Commission, and WishPost Fee Calculations
1. Why should merchants enroll in flat rate shipping?
2. How does Calculated Shipping affect flat rate shipping?
3. Where does flat rate shipping deliver?
4. How is the displayed product price calculated?
6. What is an example of a flat rate shipping calculation?
7. Why is A-Super ECONOMY shipping no longer an option for flat rate shipping-eligible destinations?
8. How does flat rate shipping impact merchant promotions?
11. What can a merchant do to monitor flat rate shipping?
13. How is the commission calculated under the flat rate shipping program?
14. How is the weight fee calculated for flat rate shipping orders?
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Overview
Advanced Logistics Program for Flat Rate Shipping Orders
As of June 12, 2023, all Advanced Logistics Program orders to flat rate shipping countries are fulfilled through A-Super STANDARD logistics channels. This also means that A-Super ECONOMY logistics channels are no longer available for Advanced Logistics Program orders to those 21 flat rate shipping countries.
With the tracked shipping service and faster delivery time of A-Super STANDARD logistics channels, flat rate shipping may lower logistics refund rates and further increase conversion rates. It also should help improve customer satisfaction, which has the potential to increase customer loyalty, repurchase rates, and conversion.
Flat Rate Shipping Page
On the Merchant Dashboard > Settings > Shipping page you can find the Flat Rate Shipping tab, which shares a bit about flat rate shipping and offers a quick way to enable Calculated Shipping, if you have not done so yet.
Calculation for Displayed Product Price
The displayed product price of flat rate shipping eligible products is based on the following calculation:
(merchant price + merchant shipping) - flat rate shipping fee (per destination) = displayed product price
Gross Merchandise Value (GMV), Commission, and WishPost Fee Calculations
GMV is based on item and shipping prices after any flat rate shipping discounts that customers receive. To offset customers’ flat rate shipping discounts, your commission to Wish as well as your WishPost item fees are reduced accordingly. (Please note the item transaction fee ($0.30) is also proportionally reduced.)
FAQs
1. Why should merchants enroll in flat rate shipping?
Merchants should enroll in flat rate shipping because it helps ensure that shipping prices align with A-Super STANDARD logistics channels‘ pricing, which is important to help protect a merchant’s store from losing money.
2. How does Calculated Shipping affect flat rate shipping?
Calculated Shipping may save time and help ensure competitive pricing. With Calculated Shipping, product shipping prices are automatically calculated and updated based on the package weight and the latest Advanced Logistics Program’s shipping pricing cards.
To enable Calculated Shipping, go to the Merchant Dashboard > Settings > Shipping.
3. Where does flat rate shipping deliver?
Flat rate shipping is available on Advanced Logistics Program orders bound for the following countries:
Australia, Austria, Belgium, Brazil, Canada, Czech Republic, Denmark, France, Germany, Great Britain, Italy, Japan, Mexico, New Zealand, the Netherlands, Norway, Puerto Rico, Spain, Sweden, Switzerland, and the United States.
Note that the flat rate shipping fee does not yet apply to “express shipping” service.
4. How is the displayed product price calculated?
The displayed product price of flat rate shipping eligible products is based on the following calculation:
(merchant price + merchant shipping) - flat rate shipping fee (per destination) = displayed product price
To be eligible for flat rate shipping, a single order must total a minimum threshold amount (which varies by shipping destination). Also, flat rate shipping fees vary by destination and are based on where the order ships to. Below is a list of flat rate shipping fees by destination (as of May 2023). These shipping fees include value-added tax (VAT) where it applies, which is automatically added on top of prices that you set. Please continue to set your prices based on WishPost shipping fees. (For more information about VAT, please review the Merchant Tax Policy .)
Flat Rate Shipping Fees by Destination
| Destination | Local Currency | Customer Shipping Fee in Local (might include VAT) |
|---|---|---|
| US | USD | 2.99 |
| AU | AUD | 4.99 |
| CA | CAD | 3.99 |
| IT | EUR | 2.99 |
| ES | EUR | 2.99 |
| BE | EUR | 2.99 |
| CZ | CZK | 69 |
| JP | JPY | 400 |
| AT | EUR | 2.99 |
| DE | EUR | 2.99 |
| MX | MXN | 55 |
| CH | CHF | 3.49 |
| NZ | NZD | 4.99 |
| SE | SEK | 39 |
| GB | GBP | 2.99 |
| NL | EUR | 3.49 |
| NO | NOK | 39 |
| BR | BRL | 15 |
| DK | DKK | 25 |
| PR | USD | 2.99 |
| FR | EUR | 3.49 |
5. How does the flat rate shipping calculation impact gross merchandise value (GMV), Wish commission, and WishPost fees?
GMV is based on item and shipping prices after any flat rate shipping discounts that customers receive. To offset customers’ flat rate shipping discounts, your commission to Wish as well as your WishPost item fees are reduced accordingly.
For example, when a customer checks out with flat rate shipping, all calculations — including your commission to Wish and item transaction fee ($0.30) — are based on the prices with any applied flat rate shipping reductions (i.e., based on total quantity of all Advanced Logistics Program flat rate items purchased in the customer transaction). Your WishPost item fee is also reduced by this same quantity of Advanced Logistics Program flat rate items purchased to offset the flat rate shipping discount provided to customers.
6. What is an example of a flat rate shipping calculation?
As noted earlier, flat rate shipping fees vary by destination, and for those with VAT, the VAT continues to be added to both the merchant set price and the merchant set shipping price as required by local regulations.
Note: If the product price after VAT is negative due to this formula, the item is ineligible for flat rate shipping. However, please note that if you set shipping prices according to the Standard rate card, then ineligibility/negative pricing is avoided
Please see below for detailed examples:
Assume customer A, located in the United States (U.S.), purchased flat rate shipping eligible products. This is the applicable shipping pricing card for general cargo:
|
|
weight range (g) |
item fee (RMB) |
fee per kg (RMB) |
|
A-Super STANDARD (otype：5002-1) |
<= 140 |
17.2 |
107 |
|
140 - 280 |
17.2 |
109 |
|
|
280 - 30000 |
17.2 |
111 |
(To check the latest shipping pricing cards, please visit this Advanced Logistics Program service-related information article.)
U.S. Flat Rate Shipping Example
| Price Component | Customer A purchased 1 items in one transaction (no changes from current) | Customer A purchased 3 items in one transaction | Customer A purchased 5 items in one transaction | Definition | |
|---|---|---|---|---|---|
| Customer Payment | Merchant set price | $7.00 | $7.00 | $7.00 | |
| Merchant set shipping | $4.00 | $4.00 | $4.00 | ||
| Merchant set total | $11.00 | $11.00 | $11.00 | ||
| Customer displayed product price | $8.01 | $8.01 | $8.01 | Merchant set total - flat rate shipping fee | |
| Customer displayed shipping price (flat rate shipping fee) | $2.99 | $2.99 | $2.99 | Flat rate shipping fee (varied per destination) | |
| Items in transaction | 1 | 3 | 5 | ||
| Adjusted shipping price | $2.99 | $1.00 | $0.60 | Displayed shipping price/# of items in transaction | |
| Customer paid total | $11.00 | $9.01 | $8.61 | Displayed item price + adjusted shipping price | |
| Merchant Charges & Revenue: Wish | Commission total (assume rate is 17% including 0.3 transaction fee) | $1.87 | $1.53 | $1.46 | Customer paid total * commission rate |
| Merchant Wish revenue | $9.13 | $7.48 | $7.14 | Customer paid total - commission total | |
| Charges & Costs: WishPost | WishPost item fee (¥17.2 ≈ $2.48) approximately equals the flat rate shipping fee after exchange rate & commission | $2.48 | $0.83 | $0.50 | WishPost item fee/# of items in transaction |
| WishPost weight fee | $1.70 | $1.70 | $1.70 | ||
| Merchant WishPost costs | $4.18 | $2.53 | $2.20 | WishPost item fee + weight fee | |
|
Merchant margin
|
$4.95 | $4.95 | $4.95 | Wish revenue - WishPost costs | |
For more information about VAT, please review the Merchant Tax Policy.
7. Why is A-Super ECONOMY shipping no longer an option for flat rate shipping-eligible destinations?
With the tracked shipping service and faster delivery time of A-Super STANDARD logistics channels, flat rate shipping may lower logistics refund rates and further increase conversion rates. It also should help improve customer satisfaction, which has the potential to increase customer loyalty, repurchase rates, and conversion for adding more products to their shopping cart.
(Also, see question #5 for WishPost reductions that could offset additional costs due to this change.)
Read more about the Confirmed Delivery Policy.
8. How does flat rate shipping impact merchant promotions?
The merchant promotion policy/requirements still apply to all products. Also know that:
- Additional Item Pricing: Is always turned off for flat rate shipping.
- Merchant promotions discount calculations: The % off input in the Merchant Dashboard’s Merchant Promotions Platform and through CSV file upload flow applies to the total product price (item price + shipping price). See Merchant Promotions Overview to learn more.
9. Why is there a large difference between the customer's flat rate shipping price and the WishPost item fee in some countries and a smaller difference in other countries?
In some countries, the difference is just due to commission (platform commission rate was used to calculate). In other countries where the difference is much larger, it is due to both platform commission rate and VAT, which can be up to 25%.
10. How do merchants know the purchased item quantity in the flat rate order and whether their WishPost item fee reduction is correct?
Wish updates the order and payment pages to reflect the details. Merchants may compare the value in “total cost” column on order/payment page, with the shipping fee WishPost charges and the product cost to monitor the impact. For specific calculations, please refer to the example above. If merchants still see unexpected results, they should contact their Wish Account Manager or Wish General Support.
11. What can a merchant do to monitor flat rate shipping?
There is a simple way to quickly evaluate the impact on your orders. Merchants may compare the value in “total cost” column on order/payment page, with the shipping fee WishPost charges and the product cost to monitor the impact. For specific calculations, please refer to the example in this document and/or the live training video. If merchants still see unexpected results, they should contact their Account Manager or Wish General Support.
12. If a buyer has purchased 10 items—and the total amount or weight or size exceeds the A+ limits—and then Merchant A has 1 item from this transaction and it does not exceed any A+ limit, is Merchant A suggested to take any action? Will there be extra cost for Merchant A?
No, there is no action Merchant A has to take, nor should he/she worry about extra cost. WishPost will fulfill the orders via A+.
13. How is the commission calculated under the flat rate shipping program?
The actual commission rate is determined by the merchant set price total while the commission is charged based on adjusted product and shipping price total.
See the example below for details.
A U.S.-bound flat rate shipping order for a Jewelry product is released to a Gold tier merchant, subject to the following highlighted commission structure:
|
Product Category |
Item Rate |
Transaction Fees |
|
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches |
13.50% |
$0.30 per item |
|
Electronics |
15.00% |
|
|
All Others |
16.50% |
Assuming we have the following information:
- Merchant set product price = $2.00
- Merchant set shipping = $4.00
The calculation of the total commissions for this order and other relevant amounts is as follows:
| Merchant set product price | $2.00 |
| Merchant set shipping price | $4.00 |
| Item value | $2.00 + $4.00 = $6.00 |
| Amount of item value | Commission |
| Item value | $6.00 * 13.5% = $0.81 |
| Transaction Fees | $0.30 * 1 = $0.30 |
| Effective Commission Rate | ($0.81 + $0.30) / $6.00 = 18.5% |
|
Customer displayed product price |
$3.01 |
Merchant set total - Flat Rate Shipping Fee |
|
Customer displayed shipping price (flat rate shipping fee) |
$2.99 |
Flat rate shipping fee charged for the United States-bound orders |
|
Items in Transaction |
3 |
|
|
Adjusted Shipping Price |
$1 |
|
|
Adjusted total price |
$3.01 + $1 = $4.01 |
Displayed product price + Adjusted shipping price |
|
Total payout to merchant |
$4.01 * (1-18.5%) = $3.27 |
Deriving total payout to merchants from adjusted total price and effective commission rate calculated above |
|
Total Commissions |
$4.01 - $3.27 = $0.74 |
Merchant total price minus total payout to merchant |
14. How is the weight fee calculated for flat rate shipping orders?
Note: The weight fee calculation below only applies to shipping orders bound for the flat rate shipping destinations arriving at the Advanced Logistics Program warehouses after October 8, 2023, 10:00 AM, Beijing Time.
The weight fee for flat rate shipping orders is calculated as follows:
Cumulated weight fee + weight fee per kg * (package weight - starting weight of the corresponding weight range)
* Cumulated weight fee is a fixed fee charged per weight range.
Example:
A Canada-bound flat rate shipping order is released to merchants and this is the applicable shipping pricing card:
|
Weight range (g) |
Item fee (RMB) |
Fee per kg (RMB) |
Cumulated weight fee (RMB） |
|
|
A-Super STANDARD (otype：5002-1) |
<= 150 |
17.6 |
138 |
0 |
|
150 - 290 |
17.6 |
125 |
20.7 |
|
|
290 - 30000 |
17.6 |
110 |
38.2 |
Below is the example of different situations for weight fee calculation:
|
Order |
Package weight |
Cumulated weight fee |
Weight fee per kg |
Starting weight of the corresponding weight range |
Weight fee calculation
|
|
1 |
0.01 kg |
0 |
138 |
0 |
0+138*(0.01-0)=1.38 |
|
2 |
0.2 kg |
20.7 |
125 |
0.15 |
20.7+125*(0.20-0.15)=26.95 |
|
3 |
0.3 kg |
38.2 |
110 |
0.29 |
38.2+110*(0.30-0.29)=39.3 |
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