As of September 2nd, TikTok Shop sellers based in the UK might want to pay higher commission fees. The fees are being raised from 5 to 9 percent. Nevertheless, if sellers reach a goal variety of TikTok Live and shoppable videos, they’ll reduce these fees.
It’s the primary time that Tik Tok raises seller fees for the reason that launch of its online marketplace in the UK in 2022. Back then, the international subsidiary of Chinese company ByteDance announced that it might expand further in Europe.
Nevertheless, after disappointing ends in the UK, that expansion was delayed. It’s now planning to launch in Ireland and Spain this October.
Fees increase to 9%
Up until now, sellers needed to pay a commission of 5 percent. That is pretty low, meant to construct traction on the platform and to draw more sellers. Now, the commission fee is raised to 9 percent. This remains to be relatively low in comparison with other platforms. eBay’s sellers fees are between 5 and 14.9 percent. Nevertheless, it recently removed seller fees on pre-owned clothes, in an effort to advertise a circular economy. Amazon’s seller fees range from 7.14 to fifteen.3 percent.
In comparison with other marketplaces, TikTok Shop’s fee is high in the patron electronics category
Most online marketplaces have specific fees for every product category. Nevertheless, plainly TikTok’s commission fee is similar in all categories. Which means consumer electronics and computing will turn into relatively expensive, as eBay charges 6.9 percent and Amazon 7.14 percent in that category. Retailers will likely turn to other platforms to sell these products.
Incentive to grow audience
The platform can also be launching a brand new Seller Missions program. Retailers can create a goal variety of TikTok Live or Shoppable Videos. The thought is that sellers will grow their audience through these videos, while also fitting with the TikTok’s mission of being a platform based on ‘discovery commerce’.
To realize these targets, sellers can collaborate with other creators on the platform. In the event that they do reach their goals, sellers can reduce their commission fees.
‘Investing in marketplace of the longer term’
“We attempt to offer the very best possible experience for our sellers and buyers. This move enables us to take a position further in constructing the marketplace of the longer term, including improved operations and services to assist our sellers succeed”, said Jan Wilk, Head of Operations at TikTok Shop UK.
‘Our latest initiative will supercharge sales’
“The sellers and types which have essentially the most success on TikTok Shop are people who engage with their community via LIVE and shoppable videos, and we’re confident our latest initiatives to spice up content creation will supercharge sales.”
