TikTok Shop increases sellers fees as it plans to build the "marketplace of the future"

TikTok Shop has confirmed changes to its seller fee structure, as the platform commits to building the "marketplace of the future", which will prioritise LIVE commerce and shoppable content.

The changes include an increase in base commission fees from 5% to 9% for UK sellers, as well as a Seller Missions programme, giving local sellers the opportunity to reduce their fees if they create a target number of TikTok LIVE or shoppable videos.

Sellers can collaborate with TikTok creators to help them achieve these Seller Missions, encouraging them to grow their audiences through shoppable content and support TikTok's overall mission to be a platform that is based on discovery commerce.

The platform also plans to introduce a new Co-Funded Free Shipping model, an initiative designed to share the cost of providing free shipping between TikTok Shop and UK sellers. This aims to improve order conversions by ensuring that all customers see greater free shipping coverage on products.

Jan Wilk, Head of Operations at TikTok Shop UK, said: "We strive to provide the best possible experience for our sellers and buyers. This change to our seller fee structure enables us to invest further in building the marketplace of the future, including improved operations and services to help our sellers succeed.

"The sellers and brands that have the most success on TikTok Shop are those that engage with their community via LIVE and shoppable videos, and we are confident our new initiatives to boost content creation will supercharge sales."

TikTok Shop's seller fees have not increased since the marketplace first launched in 2021, with the new changes to its structure expected to come into effect from 2 September.

It comes as TikTok continues to drive impressive brand and awareness and sales for many businesses on the platform.

Last week, British makeup brand P.Louise broke records during a 12-hour LIVE on TikTok Shop, generating over $2 million (£1.5 million) in sales and surpassing all UK and US records.

The achievement came after fellow TikTok viral beauty brand Made by Mitchell became the first-ever UK business to hit $1 million in revenue in one day on TikTok Shop last month.

Halliday hosted a 12-hour LIVE session from Manchester, which saw one product sell every second and resulted in $830,000 in sales, contributing to the trending beauty brand hitting the $1 million TikTok Shop milestone in just 24 hours.

It also follows Stormi Steele, the founder of Canvas Beauty, who became the first creator on TikTok in the US to earn over $1 million during a single LIVE session, further highlighting the opportunity for beauty businesses on the social media platform.

Earlier this year, TikTok published a new handbook on how beauty businesses can better connect with consumers on the app. It came as figures revealed that 52% of users have gone on to make a purchase after interacting with SMB content on TikTok.

Read TheIndustry.beauty's feature on how beauty brands can leverage TikTok to drive growth here.