Detailed explanation of store opening fees on Wish platform and VAT payment guide

As a well-known cross-border e-commerce platform, Wish has attracted many sellers to open stores and realize their dream of global sales. However, for sellers who are new to the Wish platform, a common question is: Do I need to pay fees to open a store? This article will focus on the keyword “Does it cost to open a Wish store?” to provide sellers with knowledge and practical suggestions about the cost of opening a store, and answer related questions.

Analysis of store opening charges

Before you understand whether there is any charge for opening a Wish store, you first need to have a certain understanding of the business model and charging mechanism of the Wish platform. The charges for opening a Wish store mainly include store opening fees, handling fees, advertising fees, etc. While there may be some fees involved with the Wish platform, there are also some free programs and services available to sellers.

Free projects and paid projects

The Wish platform provides some free projects, such as store registration, product listing, etc. At the same time, there are also some items that may require payment, such as promotional activities, advertising, etc. Understanding the differences between these free and paid programs can help sellers better manage costs.

The relationship between store opening expenses and sales revenue

The fees for opening a store are a concern for sellers, but it is more important to understand the relationship between these fees and sales revenue. Through a comprehensive assessment of costs and benefits, sellers can better formulate business strategies and maximize profits.

Practical tips for reducing costs

Sellers who want to reduce the cost of opening a store can take some practical measures, such as optimizing product selection and controlling advertising costs. Proper use of these strategies can help improve economic efficiency.

VAT payment guide

In addition to store opening fees, the Wish platform also involves VAT (value-added tax) payment issues. Especially for orders sold to the EU and UK, the Wish platform may require payment of consumer VAT. Here are some frequently asked questions about this type of order.

EU-bound orders

Starting from July 1, 2021, for orders shipped from outside the EU and the price expected to be paid by the user exceeds 150 euros, the Wish platform will mark it as “requiring payment of consumer VAT”. At this time, merchants need to use logistics service providers that provide DDP (Delivery Duty Paid) services to fulfill orders.

For merchants shipping from mainland China, you can choose specific WishPost logistics channels, such as Shunyou European express line, EQ express line – high-value general goods, EQ express line – high-value special goods, etc. In addition, merchants may be required to provide an EU EORI number and/or VAT number and pay applicable import duties and other customs clearance fees.

UK bound orders

From December 31, 2020, for orders shipped from outside the UK and the expected user payment price exceeds 135 pounds, the Wish platform will mark it as “requiring payment of consumer VAT”. Merchants need to use logistics service providers that offer DAP+ (delivery at destination) services to fulfill such orders.

For merchants shipping from mainland China, you can choose specific WishPost logistics channels, such as EQ Express – general goods, EQ Express – special goods, etc. For merchants shipping from outside mainland China and the UK, they need to use a logistics service provider that provides DAP+ services.

API related information

Merchants also need to pay attention to API-related changes, such as the new API field pay_customer_vat_required, which is used to identify orders that “require payment of consumer VAT”. In addition, for UK-bound orders with such markings, merchants shipping from outside mainland China and outside the UK are required to provide specified order/fulfillment information when generating logistics labels.

To sum up, it is crucial for sellers to understand the store opening fees and VAT payment requirements of the Wish platform. Through reasonable planning and effective management, sellers can successfully open a store and expand their business on the Wish platform.