Ace of September 2ndonTikTok Shop sellers based in the UK will have to pay higher commissions. Fees increase from 5 to 9 percent. However, if sellers reach their target number of TikTok Live videos and shoppable videos, they can reduce these fees.
It’s the first time Tik Tok has increased sales fees since launching its online marketplace in the UK in 2022. That’s when the international subsidiary of Chinese company ByteDance announced it would expand further in Europe.
However, after disappointing results in the UK, expansion was shelved. It is now slated to launch in Ireland and Spain this October.
Fees increase to 9%
Until now, sellers had to pay a commission of 5 percent. This is quite low, it aims to build traction on the platform and attract more sellers. Now the commission increases to 9 percent. This is still relatively low compared to other platforms. Fees to eBay sellers range between 5 and 14.9 percent. Recently, however, in an effort to promote the circular economy, it removed fees for the sale of used clothing. Amazon’s sales fees range from 7.14 to 15.3 percent.
Compared to other marketplaces, the fee for TikTok Shop in the consumer electronics category is high
Most online marketplaces have specific fees for each product category. However, TikTok’s commission fee seems to be the same across all categories. That means consumer electronics and computing will be relatively expensive, with eBay charging 6.9 percent and Amazon charging 7.14 percent in this category. Retailers are likely to turn to other platforms to sell these products.
Motivation to grow your audience
The platform is also launching a new Seller Mission program. Sellers can create a target number of TikTok Live or Shopable Videos. The idea is that retailers will grow their audience through these videos while also aligning with TikTok’s mission to be a “store discovery” platform.
To achieve these goals, sellers can collaborate with other creators on the platform. If they reach their goals, sellers can reduce their commissions.
“Investing in the Market of the Future”
“We strive to provide the best possible experience for our sellers and buyers. This move allows us to further invest 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 increase sales”
“The sellers and brands that are having the most success on TikTok Shop are those that engage with their community through LIVE and shoppable videos, and we’re confident that our new initiatives to support content creation will drive sales.”