As of September 2nd, TikTok Shop sellers based in the United Kingdom will need to pay higher commission fees. The fees are being raised from 5 to 9 percent. However, if sellers reach a target number of TikTok Live and shoppable videos, they can reduce these fees.
It is the first time that Tik Tok raises seller fees since the launch of its online marketplace in the United Kingdom in 2022. Back then, the international subsidiary of Chinese company ByteDance announced that it would expand further in Europe.
However, after disappointing results in the United Kingdom, that expansion was delayed. It is now planning to launch in Ireland and Spain this October.
Fees increase to 9%
Up until now, sellers had to pay a commission of 5 percent. This is pretty low, meant to build traction on the platform and to attract more sellers. Now, the commission fee is raised to 9 percent. This is still relatively low compared to other platforms. eBay’s sellers fees are between 5 and 14.9 percent. However, it recently removed seller fees on pre-owned clothes, in an effort to promote a circular economy. Amazon’s seller fees range from 7.14 to 15.3 percent.
Products in the category Electronics or Collectibles can be sold at lower commission rates
Retailers who sell products in the category Electronics or Collectibles on the platform may be able to sell these products for a commission rate of 5 percent. To be eligible, they need to be past their first 90 days of a 0 percent commission period. They also need to have a minimum average performance score of 4.0 for the last 90 days.
The fact that TikTok Shop is giving sellers the chance to sell these products at a lower commission fee, resembles Amazon and eBay’s policies. eBay charges 6.9 percent, while Amazon charges Amazon 7.14 percent.
Incentive to grow audience
The platform is also launching a new Seller Missions program. Retailers can create a target number of TikTok Live or Shoppable Videos. The idea 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 achieve these targets, sellers can collaborate with other creators on the platform. If they do reach their goals, sellers can reduce their commission fees.
‘Investing in marketplace of the future’
“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”, said Jan Wilk, Head of Operations at TikTok Shop UK.
‘Our new initiative will supercharge sales’
“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.”