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TikTok Shop to increase US seller fees

By Rachel Douglass


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TikTok app. Credits: Pexels

TikTok is reportedly set to raise the fees for sellers using its e-commerce features in the US, news that comes just weeks after the social media platform reported that it had surpassed 10 billion dollars in consumer spending.

According to a report by The Information, TikTok Shop is expected to quadruple its merchant fees from 2 percent to 8 percent per transaction.

The media outlet said that the company had already informed sellers of the plans, further noting that there would initially be a jump from 2 percent to 5 percent in the beginning of April, with the final 8 percent increase to come on July 1.

The changes will not apply to all categories, however, with more expensive products to see lower fees enforced.

In addition to this, The Information also reported that TikTok would be reducing subsidies previously offered to merchants in the past, citing its source as people familiar with the matter.

The move will limit the subsidies to highest selling products as part of wider company efforts to cut funding for the e-commerce division.

TikTok had only brought its Shop feature to the US in September 2023, after it delayed a launch in the region following an unsuccessful trial of the offer in the UK, where consumer demand was found to be decidedly low.

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