The Wish commission structure is to be rejigged at the end of this month, changing how fees are calculated when you make a sale. The result of these fee changes will be to move Wish from a low item ASP marketplace to fostering an environment where higher value products are sold.
In a nutshell, if you sell 100 £10 items you’ll end pay significantly higher fees under the new Wish commission structure than if you sell 10 £100 items. Forget selling cheap throwaway items on Wish and start listing better quality high value merchandise to minimise the fees you’ll pay.
Wish is actively making further efforts to become a more competitive marketplace for merchants. Looking at the ecommerce landscape and Wish’s unique marketplace economics, we have determined that a redesign of our commission structure is necessary, starting with orders shipped within/to the European Union (EU).– Wish
New Wish commission structure
From the 28th of June, orders shipped to EU-based customers and released to global merchants after this time will be subject to a new progressive Wish commission structure based on various factors including:
- Product categories
- Item value (product and shipping prices combined)
- Transaction Fees – a fixed fee of $0.30 charged per item per order (top-selling merchants benefit from a quarterly upper limit; see article linked below for details)
- Wish Standards tiers
Wish say that for most merchants the commission structure will result in them being more competitive. The new fees will have one rate for the first $20 value of an item’s price and a lower percentage rate for the portion of the item value above $20. What this means is that the higher the value of items you list on Wish the lower the overall percentage your fees will be.
On an aggregate level, the update offers a significantly competitive commission structure to merchants selling within/to the EU, both compared to Wish’s current commission rates and other major e-commerce platforms. Platinum and Gold tier merchants, merchants with large order volume, along with merchants selling Apparel and Electronics products, can enjoy even more advantageous commissions. Alongside the removal of dynamic pricing markups in Europe, Wish is moving towards becoming one of the most competitive ecommerce platforms for merchants and unlocking even more value for customers.– Wish
Wish are also working on a new but similar commission structure for orders bound for the UD and other regions of the world, set to launch later this year and will keep you informed nearer the time. Going forward, you can expect commission structures to be updated once or twice a year.
Wish also offer advice on how you can best work with the new Wish commission structure:
- 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