How does Wish charge commission from merchants?

Table of contents:

1. Introduction
2. Progressive Commission Structure for the European Union (starting July 6, 2022 UTC)
3. Commission Rate Only Mode
4. Frequently Asked Questions

-------------------------------------

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:

• When a sale is made, Wish pays merchants based on a progressive commission structure according to several factors. This structure is applied first to all European Union-bound orders starting July 6, 2022, 12:00 AM UTC, and will be gradually rolled out to other regions throughout 2022.
• 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.

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 two common ways Wish charges commission from merchants for selling on the platform, including example calculations for different scenarios. A list of FAQs are included at the end as well.

Progressive Commission Structure for the European Union (starting July 6, 2022 UTC)

For orders shipped within/to the European Union (EU) and released to merchants starting July 6, 2022, 12:00 AM UTC, merchants will be subject to a redesigned commission structure. Specifically:

1. For merchants with Platinum and Gold Wish Standards tiers (i.e., Premier Merchants):

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%

2. For merchants with Silver Wish Standards tier:

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%

3. For merchants with Bronze or below Wish Standards tiers:

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	19.80%	14.30%	$0.30 per item
Electronics	16.50%	11.00%
All Others	18.15%	12.65%

As merchants can see, the above commission structure for EU-bound orders is 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.
• Product categories
  • Apparel and Electronics products are popular categories on Wish, especially among our EU-based customers. So we reflect these demands and offer a significantly 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 offer higher-value products and price them competitively.
• Transaction Fees
  • A fixed fee of $0.30, charged per item per order
  • Top-selling merchants enjoy a Transaction Fees upper limit: 
    • Once a merchant sells 1,500 items to EU-based customers (i.e., reaching $450 Transaction Fees) in a calendar quarter (starting Q3 2022; excluding refunded and canceled orders), the merchant will no longer be charged Transaction Fees on subsequent items sold, regardless of their Wish Standards tier.

Examples:

1. A Germany-bound order (with a quantity of 1) for an Electronics product is released to a Silver tier merchant on July 12, 2022 UTC, 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 a $5.30 / $40 = 13.3% of commissions retained by Wish.

________________________

2. An Austria-bound order (with a quantity of 3) for a Clothing product is released to a Silver tier merchant on July 15, 2022 UTC, 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 $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 18% x 3 = $10.80
Remaining item value	$40 x 13% x 3 = $15.6
Transaction Fees	$0.30 x 3 = $0.90
Total Commissions	$10.80 + $15.6 + $0.90 = $27.30

The total commissions calculated here essentially represent $27.30 / $180.00 = 15.2% of commissions retained by Wish.

________________________

3. A France-bound order (with a quantity of 1) for an Electronics product is released to a Platinum tier merchant on July 1, 2022 UTC, 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 a $3.90 / $30.00 = 13% of commissions retained by Wish.

 

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

• Increase inventory for apparel (e.g., clothing, jewelry and accessories, shoes, watches) and consumer electronics goods
• Improve to or maintain Platinum or Gold Wish Standards tiers
• Leverage advertising and promotion tools such as ProductBoost and Merchant Promotions Platform 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
• Offer higher-value products and price them competitively to take advantage of benefits offered by a progressive commission structure and unique demands from Wish’s value-conscious customers

We are actively working on a new but similar commission structure for orders bound for the U.S. and other regions of the world, set to launch later in 2022. We will promptly update this article to reflect the latest information.

Commission Rate Only Mode

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 after July 19, 2021, 7:00 PM 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.

Frequently Asked Questions

1. Which types of products are considered Apparel and Electronics categories?

Apparel products include, but are not limited to:

• Apparel Accessories
• Men's Clothing 
• Women's Clothing 
• Underwear & Sleepwear 
• Shoes 
• Watches
• Jewelry & Accessories

Electronics products include, but are not limited to:

• Cellphones & Telecommunications
• Computer & Office
• Consumer Electronics
• Electronic Components & Supplies
• Earphones & Headphones
• Smart Electronics (including smartwatches)
• Speakers
• VR/AR Devices
• Walkie Talkie
• Cameras & Photo (and related accessories)
• Mobile Phone Accessories

2. How are local currencies factored into the progressive commission structure?\

The item value thresholds ($20) and Transaction Fees ($0.30 per item) in the EU-specfic progressive commission structure are both set in USD amounts. For stores receiving payments in different local currencies, the per-order commission fees will be converted to their local currencies based on the exchange rates at the time when the commission fees are calculated.

3. Under the progressive commission structure, what if a store’s Wish Standards tier is updated?

Commission fees for orders released within 24-48 hours after a store’s Wish Standards tier is updated may still be calculated using the previous Wish Standards tier. In general, the new Wish Standards tier should take effect in commission calculation after 48 hours.

4. In the progressive commission structure, are partial refunds also excluded from the 1,500 item upper limit per quarter?

Yes, partial refunds are also excluded.

5. Regarding the 1,500 items upper limit per quarter in the progressive commission structure, what if merchants successfully dispute a refund?

Wish will include this type of order (with refunds successfully disputed by merchants) in the 1,500 items upper limit per quarter. 

As a summary, all orders that are fully completed and not refunded or refunds being successfully disputed by merchants (regardless of refund reason) are counted towards the 1,500 items upper limit.

6. Unlike the previous commission rate only model, the progressive commission structure no longer factors in Wish Express. Is Wish deprioritizing Wish Express?

No. Wish has offered different user-facing features to continue highlighting Wish Express in Wish app and wish.com (e.g., filters, orange truck icon, dedicated “Express” tab). As a result, merchants can continue to see strong gains for their Wish Express products (compared to non-Wish Express products), even though the commission structure does not include Wish Express as a factor. As we enhance user experience ongoing, we encourage merchants to continue to offer expedited shipping and take advantage of the additional exposure their Wish Express products receive.

7. The majority of products sold on Wish are below $20, targeting value-conscious customers. The progressive commission structure includes a lower item value fee % for items above $20. Will this incentivize more higher-value products on the platform? Is Wish looking to shift away from its current customer base?

It’s important to clarify that the commission structure is a progressive one. The lower item value fee % applies to only the portion of a product’s item value above $20, not the entire product with a total item value above $20.

The item value is also only one factor of the progressive commission structure; other factors such as product category and Wish Standards tier are considered as well, making the commission structure a holistic one.

As such, Wish does not foresee drastic changes in the platform’s overall product price levels. In addition to the current product offering on the platform, we also recommend that merchants offer higher-value products but price them competitively. This way, merchants get to take advantage of the benefits offered by the progressive commission structure as well as unique demands from Wish’s value-conscious customers.

8. Where can I find the commission rate or amount for each order?

Merchants are able to see per-order commission details on the Order details page on Merchant Dashboard and via API. Visit this Help Center article for details.

9. How is item value in the progressive commission structure determined then if merchants enable the Calculated Shipping feature (applicable to Mainland China-based merchants only) for their stores?

As a part of the Advanced Logistics Program, the Calculated Shipping feature automatically calculates the shipping costs that Wish should pay to merchants based on package weight and the latest Advanced Logistics Program pricing cards. 

If enabled, the feature effectively eliminates the need for merchants to manually set product-level shipping prices for products included in the Advanced Logistics Program. It also provides customers a better shopping experience by allowing them to pay for shipping based on package weight.

If Calculated Shipping is enabled, an applicable product’s item value will be defined as the listed product price as provided to Wish by merchants plus the calculated shipping cost as calculated by Wish (displayed to merchants in the “Calculated Shipping Cost” column on Products > View All Products > Country Shipping Price column > Edit International Shipping Options page). The progressive commission structure then arrives at an effective commission rate, and Wish applies that effective commission rate to the calculated shipping cost to derive the shipping price that customers see and pay. Similarly, that effective commission rate is also used to calculate the total payout to merchants.

If an order has multiple quantities, the effective commission rate remains unchanged as the percentage calculated based on single-quantity item value. (I.e., single-quantity product price + calculated shipping cost as displayed on the above-mentioned Edit International Shipping Options page.) See example 2). below for details.

 

Examples:

1). A Germany-bound order (order quantity is 1) for an Apparel product is released to a Silver tier merchant on July 12, 2022 UTC, 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%

Merchant enables Calculated Shipping for this product and ships this order via Advanced Logistics Program. 

Assuming we have the following information:

• merchant-provided product price = $10 
• calculated shipping cost = $9 (calculated by Wish and displayed on Products > View All Products > Country Shipping Price column > Edit International Shipping Options page)

The calculation of the total commissions for this order and other relevant amounts is as follows:

 

2). A France-bound order (order quantity is 2) for an Apparel product is released to a Silver tier merchant on July 12, 2022 UTC, 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%

Merchant enables Calculated Shipping for this product and ships this order via Advanced Logistics Program.

Assuming we have the following information:

• merchant-provided product price = $15
• single-quantity calculated shipping cost = $10 (calculated by Wish and displayed on Products > View All Products > Country Shipping Price column > Edit International Shipping Options page) 
• average per-order-quantity calculated shipping cost = $8 (calculated by Wish and displayed to merchant in Orders > History page)
• Note: Shipping cost per order quantity is reduced as quantity increased, based on how Calculated Shipping works.

The calculation of the total commissions for this order and other relevant amounts is as follows:

10. When will Wish roll out the progressive commission structure to non-EU destinations?

The two commission models will simultaneously exist for a period of time before Wish rolls out the progressive commission structure to other regions of the world and deprecates the commission rate only model completely.

Specifically, we are actively working on a progressive commission structure for orders bound for the United States and the rest of the world, set to launch in Q3 2022. We will promptly update this article to reflect the latest information.