TikTok Shop MY to increases commission fees for sellers

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TikTok Shop Malaysia will adjust its marketplace commission fee up to 2% for sellers starting 1 March 2024.

This is in addition to the transaction fee charged to all sellers for processing successful orders in TikTok Shop. The transaction fee of 2.16% is inclusive of sales tax and service tax (SST).

The new marketplace commission fee is also inclusive of tax. That means starting 1 March 2024, the fee deducted for each order will be inclusive of the 8% SST. The fee deducted for orders before 1 March will be inclusive of 6% SST instead.

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The commission fee will only be deducted from each valid order. A valid order, according to the TikTok Shop Academy website, are paid orders that have been successfully delivered to and accepted by the buyer.

Cancelled or fully returned or refunded orders are not considered valid orders.

The formula to calculate the commission is as such, according to TikTok:

TikTok has also provided an example of how the commission fee would work on a seller selling a pair of grey shoes.

However, in the case an order is returned, the full commission fee will be refunded to the seller. If part of the order is refunded, the commission fee charged on the refunded item(s) will be refunded to the seller.

This news comes after TikTok added a dedicated TikTok Shop tab feature that takes users straight to its shopping portal with one touch.

Revealed earlier this month, the enhancement offers a convenient and streamlined experience for online shoppers while fostering deeper engagement with merchants. TikTok Shop also creates a space for the community of sellers, merchants and creators to learn from each other, discover and promote within the TikTok ecosystem.

Depicted by the shopping bag icon, the new shop tab opens up to a shopping interface where users can directly access anything related to their shopping activities. This includes browsing through showcased products, viewing orders, accessing their shopping cart, setting address and payment methods and chatting with merchants.

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