Anyone with a brand can't miss this! Before starting your TikTok Shop, you need to know this! Because currently, besides Shopee and Lazada, there's TikTok Shop, a rapidly growing and easy-to-use buying and selling platform. Even though initially TikTok was just a short video platform where creators could make review and product recommendation videos, and even link their shops to other e-commerce platforms, it quickly became a trend for sharing product locations.
Therefore, TikTok recognized that its platform could be more than just an entertainment platform and developed the TikTok Shop feature to become a comprehensive platform. This also created a Shoppertainment trend, allowing users to consume diverse content, including knowledge, entertainment, and shopping. As a result, when users find something they like, they can purchase it immediately on the platform, truly meeting the needs of consumers in this era.
TikTok Shop has therefore become another option for many brands to set up stores on. However, on September 12, 2023, TikTok has announced adjustments to its fee structure for TikTok Shop sellers. This will be effective from October 1, 2023 onwards.
The new market commission fee charged to sellers for each completed order on the TikTok Shop Shopping Center will be 4.00% (including VAT), including sales through Flash Sale channels, the Shopping Center search bar, and the Shopping Center homepage. Previously, TikTok Shop had always waived commission fees for orders placed through the TikTok Shop Shopping Center in Thailand.
The market commission is calculated from the product price minus the seller discount. Shipping fees and platform discounts are not included in the commission calculation. Therefore, the market commission calculation formula is as follows:
Market commission = 4.00 % X (Product price – Store discount)
As a result, many brands may need to recalculate their selling prices to avoid losses. Conversely, buyers may have to purchase products at higher prices. And although TikTok Shop offers discounts and more benefits, this adjustment means that both buyers and sellers will need to closely monitor the direction and trends of TikTok Shop to see what direction its future growth will take.
However, nowadays, opening a store on TikTok Shop is an option that brands shouldn't miss, whether small or large, that want to boost sales and increase revenue. For any brand that is interested in doing so...Marketing through TikTok Whether it's TikTok Ads or TikTok Shop...You can contact HelloAds, a full-service online marketing agency.Come on over
