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Business, Spoken
TikTok Shop’s Era of Super Subsidies Is Ending
Apr 2, 2024
Exploring the end of super subsidies on TikTok Shop and the impact on sellers and shoppers. Discussing fee increases, challenges for smaller businesses, and the evolving e-commerce landscape on the platform.
05:01
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Quick takeaways
- TikTok is increasing seller fees, signaling an end to super subsidies and possibly leading to higher prices on the platform.
- Smaller sellers on TikTok face the challenge of standing out and balancing content and pricing strategies to maintain their presence.
Deep dives
TikTok Shop Fees Increasing
TikTok is raising seller fees from 2% to 6% of the price of each order, set to reach 8% by July. This change is expected to impact both sellers and shoppers by potentially leading to increased prices on the platform. The move signifies a shift away from the app's previous model of offering super subsidies and deeply discounted products, making users question their loyalty to TikTok's e-commerce offerings.
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