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TikTok applies the same charging formula as Shopee applied a few months ago. |
Many sellers on TikTok Shop have reacted to the sudden doubling of platform fees in recent days. In fact, the e-commerce platform announced this change on July 16, and it will be applied on July 18. 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, applied at 4.5% of the order value, but not exceeding 30,000 VND each time.
This part is included in the platform fee by TikTok Shop, causing the commission to increase dramatically. For example, fashion sellers previously had to pay 3-4% of the order value. Now, they have to share a default of 10-12%, 3 times higher than before. The rate applied to each item is provided by the platform on the website, divided into hundreds of categories.
The platform also focuses on brand groups that have registered for the Mall (genuine) function. These accounts have a commission fee schedule that is half as low, and they have the right to choose whether to buy the SFP service or not. TikTok Shop said that they also reduced the VXP (Voucher Extra) fee for those who have registered. However, the specific change was not announced.
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Sellers were surprised by the amount of revenue deducted from the platform. Photo: LA |
This change immediately affected small sellers who did not sign up for shipping discounts or vouchers. The amount they had to share with TikTok Shop doubled, tripled after the update.
At the same time, the shopping app increased its fixed payment fee, applied to all items, from 4% to 5%, higher than Shopee. Thus, sellers on TikTok Shop may have to pay up to 17% of revenue to this "online market", not including promotions and shipping costs.
Shopee has also implemented a similar move since April. The platform has included the Freeship package in the default revenue, increasing the fixed fee for some product categories by 2-3 times. After its launch, the policy was met with opposition from sellers in some product categories. The company had to adjust the fee for some product groups. But overall, shop owners still have to pay more commission.
In recent months, Vietnam’s largest e-commerce platform has reduced fixed fees and payment fees after the new VAT policy was applied. Overall, sellers can save about 5-10% of the amount they have to share with the platform.
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TikTok Shop's new fee schedule. Photo: TikTok Shop. |
However, the roadmap for increasing taxes and fees on online marketplaces has continued over the years. From a discount rate of 5-6%, the average seller now has to pay 15-20% to the platform, not including advertising.
Talking to Tri Thuc - Znews , Mr. Do Quang Huy, a Master in E-commerce, said that the increase in fees by platforms is a common trend and will not stop. He explained the reason is that large investments have been poured into expanding the market, attracting sellers and customers over the past many years.
“In this war, the platforms will have to continue to compete fiercely. In particular, discount programs must be introduced. Therefore, increasing fees is a simple way to balance revenue and expenditure,” Mr. Huy added. After the platform raised the "sharing" level, sellers were forced to raise product prices.
Source: https://znews.vn/tiktok-shop-noi-buoc-shopee-tang-phi-gap-3-post1573771.html
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