Merchant Two-Tier High Refund Rate Policy

A store’s Refund rate is an important indicator of the quality of goods and services that merchants provide customers. Refund rate is defined as the percentage of total transactions that were refunded during a period of time. Merchants that have a low Refund rate sell quality products and provide fast shipping.

Two-Tier Policy

Under the Merchant Two-Tier High Refund rate policy, merchants with a high Refund rate are responsible for the entire cost of the refunds.

Merchants are evaluated weekly and if the merchant’s refund rates are shown to have improved, they will then be responsible for the refunds as per the regular Wish refund policies.
However, merchants with extremely high refund rates are at a risk of suspension.

Wish uses two metrics, both measured in calendar days, to evaluate a merchant’s Refund rate for Two-Tier High Refund rate policy:

1. Refund Ratio 0-30 Days
2. Refund Ratio 63-93 Days

An acceptable Refund rate is 10% or lower. Merchants should monitor the store’s Refund rate and take steps to maintain an acceptable percentage.

To view your store’s Refund rate, visit Customer Service Performance page.

Learn how to improve the store’s Refund rate.

Please note: Merchants must be in good standing for BOTH Refund Ratio 0-30 Days and Refund Ratio 63-93 Days.

Examples

Example 1: Merchant A in good standing for the time period May 15, 2017 - May 21, 2017

1. Refund Ratio 0-30 Days = 3% (within acceptable limit).
2. Refund Ratio 63-93 Days = 2% (within acceptable limit).
3. For the time period 05/15 - 05/21, Merchant A has a Refund rate within acceptable terms.
4. Merchant A is not at a risk of suspension.
5. Merchant A is responsible for the cost of refunds as per regular standards.

Example 2: Merchant B not in good standing for the time period May 22, 2017 - May 28, 2017

1. Refund Ratio 0-30 Days = 1% (within acceptable limit)
2. Refund Ratio 63-93 Days = 12% (higher than acceptable limit)
3. For the time period 05/22 - 05/28, Merchant B has a high Refund rate.
4. Merchant B is not at a risk of suspension.
5. Merchant B will be responsible for the cost of refunds for all orders.
   

Example 3: Merchant B is re- evaluated for time period May 29, 2017 - June 4, 2017

1. Refund Ratio 0-30 Days = 1% (within acceptable limit)
2. Refund Ratio 63-93 Days = 4% (within acceptable limit)
3. For the time period, 05/29 -06/04, Merchant B was able to improve the Refund rate within acceptable terms.
4. Merchant B is not at a risk of suspension.
5. Merchant B is now responsible for the cost of refunds as per regular standards.

Example 4: Merchant C not in good standing for the time period June 12, 2017- June 18, 2017

1. Refund Ratio 0-30 Days = 15% (unacceptable)
2. Refund Ratio 63-93 Days = 30% (unacceptable)
3. For the time period, 06/12 - 06/18, Merchant C has an extremely high Refund rate.
4. Merchant C is at a risk of suspension.

Example 5: Merchant D not in good standing for the time period June 12, 2017 - June 18, 2017 and June 19, 2017 - June 25, 2017

1. Refund Ratio 0-30 Days = 16% (higher than acceptable limit).
2. Refund Ratio 63-93 Days = 17% (higher than acceptable limit).
3. For the time period, 06/12 - 06/18, Merchant D has a high Refund rate.
4. Merchant D is not at a risk of suspension.
5. Merchant D is responsible for the cost of refunds for all orders.
6. Merchant D is re-evaluated for the time period 06/19 - 06/25.
7. Refund Ratio 0-30 Days is now = 22%
8. Refund Ratio 63-93 Days is now = 20%
9. For the time period 06/19 - 06/25, Merchant D’s Refund rate increased and is now extremely high.
10. Merchant D is now at a risk of suspension.