TikTok is looking to grow the size of its TikTok Shop US business to as much as $17.5 billion, according to TechCrunch, citing a report from Bloomberg. The report came after TikTok announced significantly higher selling fees it will roll out in stages this year, reported by The Information.
Currently sellers pay a 2% referral fee – the new referral fees are spelled out on the TikTok.com website:
“TikTok Shop charges a fee from sellers on all qualified transactions. This policy document defines such a fee as a “referral” fee which encompasses all TikTok Shop fees, with the exception of shipping and tax fees.
“Starting July 1, 2024, TikTok Shop will increase the referral fee on all qualified transactions to 8% per order.
“To support you through this transition, TikTok Shop will increase the referral fee in increments. As such, the referral fee will increase to 6% from April 1, 2024 to July 1, 2024 to help you align your approach accordingly. This transition period aims to ease the adjustment for all our valued sellers, ensuring a smoother integration into the updated fee structure.”
TikTok said its referral fees were below industry standards and said the changes were designed to allow it to better serve customers “while ensuring that we continue to provide great value.”
Some shoppers commenting on the news said TikTok had pulled back on coupons for the past month or so, and some said they believed the higher seller fees would bring an end to some amazing bargains on the site.
Who uses TikTok since the commies in China already know enough of what we do.