TikTok Shop is significantly increasing its sales commission in the five EU countries where the service is active. As of 8 January, merchants in Germany, Spain, France, Italy and Ireland will no longer pay 5 percent, but 9 percent per sale.
TikTok announced the change to sellers on its platform this week. The fee increase is in line with the United Kingdom, where fees also rose from 5 percent to 9 percent after an introductory period. TikTok Shop has been active there for longer.
Marketplace of the future
“This change forms part of TikTok Shop’s ambitious growth plans to develop the marketplace of the future, leading content-driven ecommerce”, TikTok explains. “Building on the opening of TikTok Shop in five EU markets, we are committed to enhancing user, seller, creator, and partner experience with platform improvements and added functionalities.”
Platform improvements and added functionalities
In certain sub-categories, the commission will be slightly lower (7 percent), and new sellers who join from 8 January will pay only 4 percent commission during their first two months.
TikTok Shop in the United Kingdom
After a hesitant start, TikTok Shop has grown rapidly in the United Kingdom, despite the fee increase. Around this past Black Friday, sales were half higher than the year before, thanks in part to 85 percent more total sellers. Recently, Samsung and the British retail chains Marks and Spencer, Clarks and Sainsbury’s joined the platform.
The growth of TikTok Shop
While Shein and Temu are seeing their growth in Europe level off, TikTok Shop continues to expand strongly. According to ECDB, the platform will surpass not only Shein and Temu next year, but also other international players such as AliExpress and eBay in global GMV.
TikTok Shop is outpacing other major Chinese platforms
TikTok Shop has been available in the United Kingdom for four years. At the end of last year, the shopping feature went live in Spain and Ireland. Early this spring, it launched in Germany, France and Italy, where fulfillment services will also become available. TikTok Shop is expected to expand to more European countries next year.
