UK TikTok Shop fees rise to 9% from September

TikTok have announced changes to TikTok Shop fees, as the platform commits to building the ‘marketplace of the future’, which will prioritise LIVE commerce and shoppable content.

The fee changes, which come into effect on September 2nd, include an increase in seller base commission fees from 5% to 9% for UK sellers, as well as a ‘Seller Missions’ programme, which will give UK sellers the opportunity to reduce their fees if they create a target number of TikTok LIVE or Shoppable Videos.

Sellers can also collaborate with TikTok creators to help them achieve these Seller Missions. This incentive is geared towards encouraging sellers to grow their audiences through TikTok LIVE and Shoppable Videos, and support TikTok’s overall mission to be a platform that is based on ‘discovery commerce’.

How do the TikTok Shop fees compare?

It was always inevitable that TikTok Shop fees would increase – effectively they were subsidised for early adopters to build traction on the platform. 9% isn’t particularly high when compared to eBay (ranging from 5% – 14.9%) and Amazon (7.14% – 15.3%).

Where TikTok Shop fees will appear a little high are in consumer electronics and computing where eBay charge 6.9% and Amazon charge 7.14%. Sellers in these categories will be considering carefully how they can accommodate the higher fees. Although they will be somewhat mitigated by high sell through rates, especially on brand new computers, tablets, and smartphones there simply isn’t enough margin to play with and still make a profit.

Co-Funded Free Shipping

The platform also plans to introduce a new Co-Funded Free Shipping model – an initiative designed to share the cost of providing free shipping between TikTok Shop and UK sellers. This will take effect from Wednesday, 4th September 2024 and aims to improve order conversions by ensuring that all customers see greater free shipping coverage on products.

TikTok Shop’s seller fees have not increased since the marketplace first launched in 2021. They will continue to be among the most competitive in the market, while also supporting further investments into platform improvements and added functionality for sellers, so that even more buyers can discover their items and purchase seamlessly.

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. 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.

– Jan Wilk, Head of Operations, TikTok Shop UK