A store’s refund rate is calculated by the number of items refunded divided by the number of items purchased. It is extremely important to maintain a low refund rate (under 5%) for your store. The lower the refund rate, the better your store is performing and the more likely your products will gain exposure. With the launch of the Wish Standards program, improving your refund rate may also help raise your Wish Standards tiers (or remain high). Note that stores with an extremely high refund rate (over 10%) are at a risk of suspension.
To check your store’s refund rate, please navigate to Merchant Dashboard Performance > Customer Service Performance page.
Read on to learn more about refund reasons and guidelines on how to improve your store’s refund rate.
1. What events negatively affect my store’s refund rate?
A store’s refund rate is affected by refund reasons, including but not limited to the following:
- Merchant failed to fulfill orders
- Item does not work as described
- Shipping takes too long
- Customer received wrong item
- Item is damaged
- Item does not match listing
2. Which refund reasons do not affect my store's refund rate?
- Suspected fraud
- Customer cancels order
- Customer places order by mistake
3. How can I reduce refunds and improve my store’s overall refund rate?
We strongly encourage merchants to constantly strive for a lower refund rate. Here are a few helpful guidelines on how to reduce refunds and improve your store’s overall refund rate:
- Fulfill orders promptly. As required by Wish Merchant Policy on order fulfillment, all orders must be fulfilled in 5 calendar days. If an order is not fulfilled in 5 calendar days after the order is released to the merchant, the order will be considered unfulfilled and auto refunded.
- Make sure products are delivered in a timely manner.
- Drop off items as soon as you mark them shipped.
- Select a reliable and fast shipping carrier by using one of the qualified shipping carriers.
- For orders that qualify for the Confirmed Delivery Policy, please ship with one of the Confirmed Delivery Carriers.
- Keeping track of your shipping performance and compare performance between different shipping carriers.
- Make sure items are correctly labeled and the correct items are shipped with each order, i.e. item shipped is of the correct SKU, color, size, and quantity.
- Use Wish’s sizing chart to size your products.
- Maintain accurate inventory. When items are out of stock, please mark items as so in order to avoid customers purchasing an item that cannot be shipped.
- Remove products from your store that appear to attract fraudulent transactions to reduce fraudulent refunds.
- Improve warehouse efficiency to ensure quick and accurate shipments.
- Optimize logistics and warehouse procedures.
- Properly train warehouse staff to avoid possible human errors.
- Clearly and accurately describe your products in the title, description, and images.
- Write a good product description by including the following information: product features, product dimensions, and items contained in the box.
- Use ¾ photos with one main silo (white background) image, one environmental image, and any combination of the following: product use image, dimensions image, label image, alternative angled silo image, second environmental image, and product highlight image.
- We also encourage you to upload videos for your products that can help best demonstrate your products and add value to the customer experience. To learn more about uploading videos, please visit this article.
- Securely pack items to prevent damage during shipping. For fragile products, please pack with bubble wrap, packing peanuts, etc.
- Identifying products with high refund rates and improving them can also help reduce your store’s overall refund rate. Click here to learn more about checking your product’s refund rate.