TikTok Shop is an e-commerce marketplace that enables merchants, brands, and creators to showcase and sell products directly on TikTok through in-feed videos. The e-commerce service is available in seven regions across Asia, as well as the United Kingdom and the United States.
On Tuesday 31 January, TikTok announced their new marketplace commission fee of 2% on its knowledge hub, excluding value added tax (VAT), on all successfully delivered orders.
This new fee is set to take place on Wednesday, 1 March 2023, 10:00AM. The giant short-form video sharing site added, the commission fee charged to sellers in Malaysia is also subject to 6% VAT, bringing the total charge to 2.12%, Tech TRP reported.
The platform will however return all commission fees to the sellers if any sold items are returned by the buyer.
For orders which are returned partially, sellers will be refunded based on the actual returned item.
Here’s an example of the calculation including the new commission fee:
The company explained that the commission fee is charged so that they can continue to provide the “TikTok Shop experience to both sellers and buyers”.