Merchants set the price of an item when uploading it onto the platform. We always try to make sure that the final product price users see is the price set by the merchant, or something close to it. However, there may be a difference in the price indicated by the merchant and the price users see on Wish. We may do this to optimize exposure and number of transactions, and/or to account for fluctuations in variable factors such as exchange rate, taxes, etc.
Dynamic Pricing (Ended)
In the second quarter of 2022, we began to phase out dynamic pricing markups for select merchants. The primary impact was an uptick in orders and customer retention, signaling success of the change. Based on this information, and to elevate merchant and user engagement in our marketplace, we expanded this decision. As of July 1, 2022, dynamic pricing markups have been phased out for all merchants worldwide.
VAT, a consumption tax levied on all goods sold in/to the European Union, is still added to the merchant-set pricing, where applicable and required by law. So the total price that customers see may still be higher than merchant-set prices because of VAT inclusion. To learn more about VAT, see the Wish Merchant Tax Policy.