Deadline Extension Announced: Wildberries' Unified Commission Policy for Russian and Chinese Sellers Postponed

[Ebrun Original] May 31, 2024: The previously announced deadline for Wildberries to unify its commission policies for Russian and Chinese sellers has passed without the platform implementing any changes. The company's press office has confirmed to the Russian news agency RIA Novosti that the plan has been postponed, with no new implementation date announced.

In early April, RVB Group, the operator of Wildberries, announced that starting May 25, it would introduce unified cooperation terms for all sellers on the platform, aiming to create a transparent, predictable, and fair competitive environment. The key changes, as outlined at the time, involved two main aspects: First, significantly increasing sales commissions for Chinese sellers—currently mostly in the 15-25% range—to align with Russian sellers' rates of 25% to 40%, categorized by product type. Second, implementing a unified rule for buyer discounts funded by the platform, meaning the platform would no longer have the right to unilaterally lower prices for promotions without seller consent. Additionally, the platform pledged to continue improving promotional tools to enhance sales efficiency.

However, recently, in a letter to Chinese sellers, the platform explicitly stated that 'cooperation terms will remain unchanged starting May 25.' Russian media later obtained a copy of this letter, further confirming the delay. Consequently, Chinese sellers will retain their existing cost advantages for the foreseeable future.

In response to inquiries, Wildberries' press office explained to RIA Novosti: 'We are continuing discussions with Russian federal government authorities regarding the mechanism for these changes and conducting an in-depth analysis of the effectiveness of the proposed measures. Therefore, additional necessary time has been allocated for the implementation of this issue.' This statement reveals the complex regulatory negotiations behind the policy delay.

As early as March this year, Russia's Federal Antimonopoly Service (FAS) intervened, finding that commission structures on platforms like Wildberries and Ozon differed by seller nationality. The FAS required them to proceed with adjustments and submit detailed information on commission rates for domestic and foreign sellers by April 3 to resolve the issue. In April, the head of the FAS stated that the agency had received proposed amendments from both companies on time. As of the time of writing, the FAS has not issued new comments on this postponement.

Some Russian media have pointed out that unlike Russian sellers, who are highly dependent on a few major domestic e-commerce platforms and thus exhibit greater tolerance for high commissions, Chinese cross-border sellers have a wider array of international sales channels. If commission rates become too high, the latter would likely exit the market—this may be the underlying reason why Russian e-commerce platforms have been unable to finalize the 'unified commission policy.'

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