TikTok Shop is set to raise its commission fees for sellers in the UK, marking the first change since its launch in 2021.
- The new commission rate will increase from 5% to 9%, starting 2 September, aligning with its focus on live commerce and shoppable content.
- A ‘seller missions’ programme will allow sellers to lower their fees by meeting specific content creation goals.
- A co-funded free shipping model will launch on 4 September, aiming to boost order conversions by sharing shipping costs with sellers.
- The platform asserts its fees remain competitive, as it invests in enhancing operations and services.
TikTok Shop, the e-commerce platform integrated within the popular social media app, is increasing its seller commission fees in the United Kingdom from 5% to 9% beginning on the 2nd of September. This adjustment marks the first change in fee structure since the platform’s inception in 2021. The revision underscores TikTok’s strategy to enhance its position as a leader in live commerce and shoppable content, areas of significant growth potential.
Accompanying the fee increase is the introduction of a ‘seller missions’ programme. This initiative is designed to incentivise sellers to engage more actively with the platform’s features by offering them the opportunity to reduce their commission fees. By producing a targeted number of TikTok live or shoppable videos, sellers can achieve reduced fees, thus fostering greater interaction with their audience. By collaborating with influencers and content creators, sellers can broaden their reach, effectively increasing their sales potential.
In addition to these changes, TikTok Shop aims to further support sellers through the launch of a co-funded free shipping model, commencing on the 4th of September. This initiative seeks to enhance order conversion rates by enabling sellers to offer free shipping, a cost traditionally borne fully by sellers, now shared with the platform. This move is anticipated to widen the array of products available for customers with no additional shipping charges.
TikTok emphasises that despite the fee increase, its commission rates remain among the most competitive in the market. The platform’s investment in improved operational and service capabilities aims to provide a superior marketplace experience for both buyers and sellers. According to Jan Wilk, head of operations at TikTok Shop UK, “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.”
These strategic changes underscore TikTok Shop’s commitment to evolving its marketplace model while continuing to support its seller community.
