Whatnot Launches Gems Buyer Reward Program, Introduces Cancellation Fees For Sellers

Whatnot's latest Terms of Service update has some good news for buyers and bad news for some sellers with new Gems reward program and cancellation policies.

Gems Buyer Reward Program

First, a new section has been added to the Terms of Service about the recently launched Gems Buyer Reward Program.

Gems are a new virtual points system that rewards buyers for being active. Points can be earned by completing challenges and used to unlock digital rewards like custom Jumbotrons (celebration animations for purchases), Reactions (double-tap during a live show to express how you feel), and incentives like Coupons.

More details here.

Cancellation Fee For Sellers

The Whatnot Terms and Conditions also include a new section about changes to the cancellation policy, introducing additional fees in an effort to deter sellers from canceling orders.

Seller-Initiated Cancellations
Sellers are expected to fulfil all successful orders placed through the Services. If a Seller cancels an order for any reason other than a buyer-initiated cancellation properly submitted through the platform or another reason expressly permitted by Whatnot, the Seller agrees that Whatnot may assess a cancellation charge.

A cancellation charge will be equal to $3 USD, £3 GBP, €3 EUR, $3 CAD, or $3 AUD, or the equivalent amount in the currency in which the order was placed, as applicable, or 3% of the total order amount (including item price, shipping, and applicable taxes), whichever is greater, or such other amount as Whatnot may establish from time to time in its sole discretion.

The Seller authorizes Whatnot to deduct any cancellation charge from the Seller’s balance, ledger, payouts, or any amounts otherwise owed to the Seller. The cancellation charge constitutes a contractual penalty and liquidated damages for failure to fulfil an order and is not a fee for services.

Assessment of a cancellation charge is in addition to, and not in lieu of, any other rights or remedies available to Whatnot under these Terms or applicable law.

Whatnot provided more details in a dedicated help page about the new policy.

When a fee may apply

Fees may apply for avoidable issues, such as:

• Missing or misplaced inventory
• Incorrect listing details
• Item condition not matching the listing
• Changing your mind about the sale price
• Unexpected shipping costs
• Canceling after generating a shipping label

When a fee may not apply

Fees may not apply in cases like:

• Buyer-requested cancellations submitted through Whatnot
• Shipping carrier issues
• Order problems unrelated to your actions
• Break-related cancellations when a break does not fill (if applicable)

Fee amount and how it’s charged

• The fee is $3 or 3% of the order total, whichever is greater
• Your first seller cancellation fee is waived
• You’ll always see whether a fee applies before confirming cancellation
• If applied, the fee is automatically deducted from your seller balance
• You can review the fee in your Order Receipt and ledger

While some sellers will likely be unhappy with the new policy, others posting on Reddit are expressing mostly positive opinions about it, saying they hope it will clean things up and weed out those who don't provide a good customer experience.

We get charged for cancelling on goat and stockx so I like the idea of whatnot sellers being charged

Honestly shouldn't bother any half decent seller. Im only going to cancel if something legitimately happens. Say the items broken or something.

Others say the same should also apply to buyers, with the seller being compensated for the cancellation.

They should also have the customer pay a fee when they cancel. which goes to the seller!