How Wish charges commission from merchants

Table of contents:

1. Introduction
2. Progressive Commission Structure
3. Commission Rate Only Model

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Introduction

When merchants make a sale on Wish, Wish will generally charge a commission and pay merchants based on the following two most common models:

1. When a sale is made, Wish pays merchants based on a progressive commission structure according to several factors. Note the varied start dates of each:
   • The European Union (EU) Progressive Commission Structure, which is applied to orders shipping within/to the EU and released to merchants starting July 6, 2022, 12:00 AM UTC.
   • The non-European Union (non-EU) Progressive Commission Structure, which is applied to orders shipped within/to non-EU destinations and released to merchants starting September 20, 2022, 12:00 AM UTC.
     • See lists of EU and non-EU destinations as defined by  Wish.
2. When a sale is made, Wish pays merchants a percentage of the item value (defined as the listed product price plus the listed shipping price as provided to Wish by merchants) based on a commission rate only model, calculated per order based on multiple factors. This model applies to the following:
   • To orders shipped within/to the EU and released to merchants between July 19, 2021, 7:00 PM UTC and July 6, 2022, 12:00 AM UTC.
   • To orders shipped within/to non-EU destinations and released between July 19, 2021, 7:00 PM UTC and September 20, 2022, 12:00 AM UTC).

Therefore, Wish doesn't charge you money or fee upfront and we only earn money when merchants' products sell. Details on payment policy around how Wish charges commission can be found in the Merchant Policy, "Fees and Payments."

This Help Center article details the above-mentioned ways that Wish charges commission from merchants for selling on the platform, including example calculations for different scenarios. 

For common questions and answers, see the article, "Commission structure FAQs." 

Progressive Commission Structure 

The EU Progressive Commission Structure is applicable to orders shipped within/to the EU and released to merchants starting July 6, 2022, 12:00 AM UTC.

For these orders, merchants are subject to the following commission structure.

EU Progressive Commission Structure
Product Category	Wish Standards’ tier	Item value fee % for the first $20 USD of the item value	Item value fee % for the portion of the item value above $20 USD	Transaction Fees
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches	Platinum & Gold	16.20%	11.70%	$0.30 USD per item (Transaction Fee upper limit of 1,500 items in a calendar quarter)
	Silver	18.00%	13.00%
	Bronze & below	19.80%	14.30%
Electronics	Platinum & Gold	13.50%	9.00%
	Silver	15.00%	10.00%
	Bronze & below	16.50%	11.00%
All Others	Platinum & Gold	14.85%	10.35%
	Silver	16.50%	11.50%
	Bronze & below	18.15%	12.65%

The non-EU Progressive Commission Structure is applicable to orders shipped within/to non-EU destinations and released to merchants starting September 20, 2022, 12:00 UTC). For these orders, merchants are subject to the following commission structure:

Non-EU Progressive Commission Structure
Product Category	Wish Standards’ tier	Item value fee % for the first $20 USD of the item value	Item value fee % for the portion of the item value above $20 USD	Transaction Fees
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches	Platinum & Gold	13.50%	9.00%	$0.30 USD per item (Transaction Fee upper limit of 1,500 items in a calendar quarter)
	Silver	15.00%	10.00%
	Bronze & below	16.50%	11.00%
Electronics	Platinum & Gold	11.70%	7.20%
	Silver	13.00%	8.00%
	Bronze & below	14.30%	8.80%
All Others	Platinum & Gold	12.60%	9.90%
	Silver	14.00%	11.00%
	Bronze & below	15.40%	12.10%

As merchants can see, the above commission structures are determined by a few factors:

• Wish Standards' tiers
  • Relative to Silver tier merchants, Platinum and Gold tier merchants enjoy a 10% discount on the item value fee % in the commission structure above.
  • On the other hand, Bronze and below tier merchants are subject to a 10% premium on the item value fee % in the commission structure above, relative to Silver tier merchants.

Learn more about Wish Standards.

• Product categories
  • Apparel and Electronics products are popular categories on Wish, especially among our customers. So, we reflect these demands and offer a competitive commission structure for these categories, both compared to Wish’s previous commission rates and other e-commerce platforms.
• Item value
  • A progressive commission structure where item value fee % is lower for higher price portions can benefit merchants who competitively price their higher-value products.
• Transaction Fees
  • A fixed fee of $0.30, charged per item per order
  • Top-selling merchants enjoy a Transaction Fees upper limit: 
    • Per each EU and non-EU commission structure, once a merchant sells 1,500 items (i.e., reaching $450 Transaction Fees) in a calendar quarter (starting Q3 2022 for EU orders and Q4 2022 for non-EU orders; excluding refunded and canceled orders for both the EU and non-EU), the merchant will no longer be charged Transaction Fees on subsequent items sold, regardless of their Wish Standards tier.
    • The Transaction Fees upper limit applies separately to EU and non-EU commission structures.

Examples:

1. A Germany-bound order (with a quantity of 1) for an Electronics product is released to a Silver tier merchant, subject to the following highlighted commission structure:

Product Category	Item value fee % for the first $20 of the item value	Item value fee % for the portion of the item value above $20	Transaction Fees
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches	18.00%	13.00%	$0.30 per item
Electronics	15.00%	10.00%
All Others	16.50%	11.50%

Assuming a $40 item value (merchant-provided product price + merchant-provided shipping price), the calculation of the total commissions is as follows:

Item Value	$40.00
Order Value*	$40.00 x 1 = $40.00
Amount of item value	Commission
First $20 of item value	$20 x 15% = $3
Remaining item value	$20 x 10% = $2
Transaction Fees	$0.30 x 1 = $0.30
Total Commissions	$3 + $2 + $0.30 = $5.30

*Order Value is defined as (item value x quantity).

The total commissions calculated here essentially represent $5.30 / $40 = 13.3% of commissions retained by Wish.

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2. A U.S.-bound order (with a quantity of 3) for a Clothing product is released to a Silver tier merchant, subject to the following highlighted commission structure:

Product Category	Item value fee % for the first $20 of the item value	Item value fee % for the portion of the item value above $20	Transaction Fees
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches	15.00%	10.00%	$0.30 per item
Electronics	13.00%	8.00%
All Others	14.50%	11.00%

Assuming a $60 item value, the calculation of the total commissions is as follows:

Item Value	$60.00
Order Value	$60.00 x 3 = $180.00
Amount of item value	Commission
First $20 of item value	$20 x 15% x 3 = $9.00
Remaining item value	$40 x 10% x 3 = $12.00
Transaction Fees	$0.30 x 3 = $0.90
Total Commissions	$9.00 + $12.00 + $0.90 = $21.90

The total commissions calculated here essentially represent $21.90 / $180.00 = 12.2% of commissions retained by Wish.

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3. A France-bound order (with a quantity of 1) for an Electronics product is released to a Platinum tier merchant, subject to the following highlighted commission structure:

Product Category	Item value fee % for the first $20 of the item value	Item value fee % for the portion of the item value above $20	Transaction Fees
Apparel Accessories, Clothing, Jewelry & Accessories, Shoes, Watches	16.20%	11.70%	$0.30 per item
Electronics	13.50%	9.00%
All Others	14.85%	10.35%

Assuming a $30 item value, the calculation of the total commissions is as follows:

Item Value	$30.00
Order Value	$30.00 x 1 = $30.00
Amount of item value	Commission
First $20 of item value	$20 x 13.5% = $2.70
Remaining item value	$10 x 9% = $0.90
Transaction Fees	$0.30 x 1 = $0.30
Total Commissions	$2.70 + $0.90 + $0.30 = $3.90

The total commissions calculated here essentially represent $3.90 / $30.00 = 13% of commissions retained by Wish.

Based on this new commission structure and examples above, we strongly encourage merchants to re-assess their product offering and store strategies. Get the most out of selling on Wish through the following actions:

• Improve to or maintain Platinum or Gold Wish Standards' tiers
• Leverage ProductBoost (advertising tool) and Merchant Promotions Platform (promotion tool) to increase quarterly order volume and take advantage of the Transaction Fees upper limit
• Focus efforts on top-selling stores to more easily and quickly reach the Transaction Fees upper limit
• Price higher-value (>$20) products competitively so to take advantage of the lower rates on each dollar above $20 created by the progressive commission structure design

Commission Rate Only Model

For orders shipped within/to the EU and released to merchants after July 19, 2021, 7:00 PM UTC and before July 6, 2022, 12:00 AM UTC AND for orders shipped to non-EU destinations and released between July 19, 2021, 7:00 PM UTC and before September 20, 2022, 12:00 AM UTC, merchants are subject to the following commission rates only model based on various factors:

• 5% revenue share on Wish Express orders (across all product categories) bound for non-North American destinations and any North American destination other than the United States and Canada.
• 10% revenue share on Wish Express orders (across all product categories) bound for the following North American destinations only: the United States and Canada.
• 10% revenue share on non-Wish Express orders (across all destinations) for Household Supplies products.
• 25% revenue share on non-Wish Express orders (across all destinations) for Sexual Wellness products.
• 15% revenue share on non-Wish Express orders (across all product categories except for Household Supplies or Sexual Wellness) shipped within the European Union (i.e., from and to the EU), ONLY if the merchant falls within one of the following groups:
  • EU domiciled
  • Non-EU domiciled with an EU establishment
• 22% revenue share on all other non-Wish Express orders (across all product categories except for Household Supplies or Sexual Wellness) bound for EU destinations.
• 15% revenue share on non-Wish Express orders (across all product categories except for Household Supplies or Sexual Wellness) bound for non-EU destinations.

As outlined above, an applicable order’s commission rate percentage may therefore be calculated based on the following criteria:

• Wish Express status
• Order destination
• Order origin
• Merchants’ region of domicile or legal establishment
• Corresponding product’s category

Examples:

• A France-bound Wish Express order is released to Merchant A on July 24, 2021 UTC. This order is subject to the above commission rate only model and receives 5% commission rate.
• A U.S.-bound non-Wish Express order is released to Merchant B on August 1, 2021 UTC. This order’s corresponding product category is Household Supplies. This order is subject to the above commission rate only model and receives 10% commission rate.

For orders subject to the commission rate only model, we encourage that merchants pursue the following efforts and take advantage of low commission rates for certain types of orders:

• Set up Primary and/or Secondary warehouses in close proximity to the destinations you are interested in selling into, so you may offer Wish Express shipping for more of your products.
• Set up business establishments in the regions that you are interested in selling into.
• Increase inventory for consumer packaged goods or other household items.
• Decrease inventory for sexual wellness products.

To learn more, see “Commission structure FAQs.”