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2021/08/24
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How does ProductBoost Refund Assurance work?

If merchants create ProductBoost campaigns for products included in the Advanced Logistics Program, they may be issued ProductBoost Credit designed specifically to protect them against order refunds caused by the Advanced Logistics Program. The more ProductBoost spend merchants invest in their campaigns, the more ProductBoost Credit merchants will receive.

On a monthly basis starting July 2021, Wish calculates and issues a ProductBoost Credit amount to merchants¡¯ ProductBoost Wallet using the following formula:

ProductBoost Credit = Monthly Advanced Logistics Program GMV * (Monthly Advanced Logistics Program order refund rate % - 5%), up to 50% of monthly ProductBoost spend

All data in this formula is presented to you in the Merchant Dashboard ProductBoost > Refund Assurance page, so you can clearly see the amount of ProductBoost Credit received and monthly refund rate and GMV (specific to Advanced Logistics Program orders placed by customers during a particular month), ProductBoost spend, and more (once again, note that the GMV, Refund GMV, Orders, Refund orders, and Refund rate data presented on this page are all relevant to Advanced Logistics Program orders only, different from the information presented in the Merchant Dashboard > Performance pages):

For example, to calculate the ProductBoost Credit amount to be issued in July 2021 for the month of June 2021:

  • A merchant¡¯s ProductBoost spend during June on a product included in the Advanced Logistics Program is $200.

  • The product generates $1,200 of Advanced Logistics Program GMV for all relevant orders placed by customers in June.

  • The refund rate for Advanced Logistics Program orders placed by customers in June is 8%

The amount of ProductBoost Credit to be issued to this merchant in July will be $1,200 * (8% - 5%), up to 50% * 200 = $36, up to $100, which will be $36.

Please note that as order refunds due to Advanced Logistics Program issues or delays could occur long after an order is placed by customers, the refund rate for a specified month may fluctuate for up to 6 months after the end of that specified month. Therefore, ProductBoost Credit may be issued for the month of June in August, September, October, and beyond, if refunds occur in the 6 months after June for orders placed in June.

As you can see, the more you spend on ProductBoost for products included in the Advanced Logistics Program, the more ProductBoost Credit you will receive (if the monthly refund rate for relevant orders is above 5%). You also do not need to worry about refunds that occur outside of your control when considering investment into ProductBoost. 

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