Technology

What is TikTok Shop discount and how is it calculated? How many types of selling fees are there on TikTok?

The TikTok Shop discount is an issue that many people are concerned about when wanting to do online business through TikTok. So what are the latest TikTok Shop fees, refund prices, and shipping prices on TikTok? Is it worth doing business on TikTok Shop? To find out the answers, let's follow the article below.

Administrator

2 March, 2024

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The phrases “platform fees” and “discounts” are certainly not unfamiliar to online businesses on e-commerce platforms. Similarly, when selling on TikTok Shop, you need to know how much TikTok Shop’s discounts are. From there, consider offering the best prices.

Should you sell on TikTok Shop?

Here are the benefits that TikTok Shop platform brings to sellers:

There is a large number of young customers interested in and regularly making online purchases.
Advertising content, product introductions are displayed in the form of videos. This is an effective way to introduce and promote products.
Users can watch product review videos and click to buy immediately without leaving TikTok.
Saves costs on staff and premises as you don’t need to operate a physical store.

After knowing the benefits of selling on TikTok, you should find out about TikTok Shop’s discounts before opening a store.

Are there any fees for selling on TikTok?

To sell on TikTok Shop, you will have to pay a fee called TikTok platform fee. This fee is calculated as a percentage on the total order value. In addition, you need to note the other two fees: Freeship Extra (4.5%) and tax (1.5%).

From October 17, 2022, TikTok increased the fee from 1% to 3% (including tax). Applied to all domestic stores and all kinds of products on TikTok Shop Vietnam.

The formula for calculating TikTok Shop’s fees is:

Platform fee = (Payment from customer – Refund for customer’s order) * 3%

Frequently asked questions

Q: What are the advantages of using TikTok Shop for e-commerce?

A: There is a large youth audience on TikTok that regularly engages in online shopping. The platform also allows for creative video advertising and product introductions, an effective way to showcase and promote items. Users can watch product reviews and make immediate purchases without leaving the app, streamlining the buying process. Additionally, sellers save on staff and premises costs as a physical store is not necessary.

Q: Are there any fees for selling on TikTok, and what are they?

A: Yes, there is a fee structure in place for sellers on TikTok Shop. The main fee is called the “TikTok platform fee,” which is calculated as a percentage of the total order value. Additionally, there is a “Freeship Extra” fee of 4.5% and a tax of 1.5%. As of October 17, 2022, TikTok increased the platform fee to 3% (including tax) for all domestic stores and products on TikTok Shop Vietnam.

Q: How do you calculate the fees for TikTok Shop?

A: The formula for calculating the platform fee is: Platform fee = (Payment from customer – Refund for customer’s order) * 3%