TikTok Shop is set to increase UK seller fees from 5% to 9% starting 2nd September.
- The initiative aims to build a ‘marketplace of the future’ by enhancing live commerce and shoppable content.
- UK sellers can participate in the ‘seller missions’ programme to reduce fees by achieving specific content creation targets.
- TikTok plans to launch a co-funded free shipping model to enhance order conversions.
- The platform’s fees are described as competitive within the marketplace.
TikTok Shop has announced a new initiative to increase seller fees in the United Kingdom from 5% to 9%, effective from 2nd September. This decision is part of a broader strategy to cultivate a ‘marketplace of the future’ by emphasising live commerce and shoppable content. This shift in strategy marks a significant change, as fees have remained static since the platform’s inception in 2021.
To mitigate the impact of increased fees, TikTok Shop is introducing a ‘seller missions’ programme, which allows UK sellers to lower their fees by reaching target numbers of TikTok live or shoppable video content. This programme encourages collaboration with popular creators on the platform, aiming to expand sellers’ reach through engaging and interactive videos.
Furthermore, TikTok is introducing a co-funded free shipping model scheduled to launch on 4th September. In this scheme, sellers and TikTok will share the shipping costs, enabling sellers to offer free shipping to customers. By broadening the range of products available with free shipping, TikTok aims to increase order conversions.
Jan Wilk, the head of operations at TikTok Shop UK, stated, ‘We strive to provide the best possible experience for our sellers and buyers. This move enables us to invest further in building the marketplace of the future, including improved operations and services to help our sellers succeed.’
Since its launch, TikTok Shop has maintained its fees at competitive rates within the market. The recent changes are aimed at enhancing the platform’s offerings while remaining attractive to sellers.
TikTok Shop’s increase in seller fees represents a strategic move towards enhancing its marketplace capabilities.
