TikTok follows Shopee's lead in tripling its fees.

TikTok is applying the same fee structure as Shopee did a few months ago.

Many sellers on TikTok Shop reacted to the sudden doubling of platform fees in recent days. In fact, the e-commerce platform announced this change on July 16th, with implementation on July 18th. The SFP (Shipping Fee Program) service, which subsidizes shipping costs, will be applied by default to all orders from regular shops.

Previously, this package had to be registered separately, charged at 4.5% of the order value, but not exceeding 30,000 VND per transaction.

This portion is included in TikTok Shop's platform fees, causing a dramatic increase in commissions. For example, fashion sellers previously paid 3-4% of the order value. Now, they have to share a default of 10-12%, three times more than before. The applicable rate varies for each item, which is provided on the platform's website and categorized into hundreds of items.

The platform also focuses on branded accounts that have registered for the Mall (authentic) function. These accounts have commission fees that are less than half and have the option to purchase SFP services. TikTok Shop stated that they also reduced VXP (Voucher Extra) fees for registered users. However, the specific amount of the change was not disclosed.

Sellers were surprised by the revenue deductions made by the platform. Photo: LA

This change immediately impacted small retailers who hadn't signed up for discounted shipping or additional vouchers. The amount they had to share with TikTok Shop doubled or tripled after the update.

At the same time, the shopping app increased its fixed payment fee, applicable to all items, from 4% to 5%, higher than Shopee. Thus, sellers on TikTok Shop may have to pay up to 17% of their revenue to this online marketplace, not including promotions and shipping costs.

Shopee also implemented a similar move starting in April. The platform included the free shipping package in the default charges, increasing the fixed fee for some product categories by 2-3 times. After its launch, the policy faced opposition from sellers in some categories. The platform had to adjust fees for several product groups. But overall, shop owners still ended up paying more commission.

In recent months, Vietnam's largest e-commerce platform has reduced fixed fees and payment processing fees following the implementation of the new VAT policy. Overall, sellers can save approximately 5-10% of the amount they would otherwise have to pay to the platform.

TikTok Shop's new price list. Photo: TikTok Shop.

However, the upward trend in taxes and fees on online marketplaces has continued over the past few years. From a discount of 5-6%, sellers now have to pay an average of 15-20% to the platform, not including advertising costs.

Speaking with Tri Thức - Znews , Mr. Do Quang Huy, a Master's degree holder in e-commerce, stated that the increase in fees by e-commerce platforms is a general trend and will not stop anytime soon. He explained that the reason is the large investments made to expand the market and attract sellers and customers over the past several years.

“In this battle, platforms will have to continue competing fiercely. Discount programs will have to be offered. Therefore, increasing fees is a simple way to balance revenue and expenses,” Mr. Huy added. After the platform raised the revenue sharing rate, sellers were forced to raise product prices.