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TikTok Shop has confirmed changes to its seller fee structure in the UK market as they near their plans to position TikTok Shop as the marketplace of the future, prioritizing Live commerce and shoppable content.
These changes will reflect an increase in base commission fees from 5% to 9%. Along with this, they are also rolling out plans to enhance local selling on the platform. As such, local sellers can leverage the opportunity to reduce their fees by creating a target number of TikTok Live or shoppable videos on their handles. Local sellers can collaborate with TikTok creators on shoppable videos to grow their audience base, adding to TikTok’s overall mission to be a platform that is identified as THE discovery commerce channel.
Apart from this, as a breather to the existing and potential seller base of the UK, the platform plans to introduce a Co-funded Free Shipping model. An initiative designed to share the cost of providing free shipping between TikTok Shop and UK sellers. This is done to enhance order conversions on TikTok, ensuring customers get improved shipping coverage on products.
To quote Jan Wilk, Head of Operations, TikTok Shop, UK, “We strive to provide the best possible experience for our sellers and buyers. This change to our seller fee structure enables us to invest further in building the marketplace of the future, including improved operations and services to help our sellers succeed. The sellers and brands that have the most success on TikTok Shop are those that engage with their community via LIVE and shoppable videos, and we are confident our new initiatives to boost content creation will supercharge sales.”
This is the first time that TikTok Shop has revised its sellers’ fees, since its inception in 2021. These new fee structures are expected to come into effect from September 02nd, 2024.
TikTok continues to drive impressive brand awareness and sales for sellers, alluring all those who wish to capture the nerves of the audience in today’s commerce-first world. To start and scale business on TikTok Shop, sellers must partner with the right integration providers and stay up-to-date with the industry trends to drive enhanced discoverability of their products.
Source: https://www.drapersonline.com/news/tiktok-shop-to-raise-uk-seller-fees
