technology
TikTok Shop to Test Managed Services for Sellers Starting in August
Sellers enrolling in the program will pay a $10,000 flat fee plus 10% to 20% commission per sale. The pilot shifts additional responsibilities to the platform while sellers retain product listing and sample duties.
Jul 16, 1:40 PM·1m read1 source
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TikTok Shop will begin a managed services pilot in August that charges participating sellers a $10,000 flat fee plus a 10% to 20% commission on each sale, Business Insider reported. Commission rates vary by product category according to the platform's documentation. Sellers will remain responsible for listing products on Shop and sending free samples to influencers.
The platform will handle other tasks such as creator hiring and ad campaigns under the new arrangement. The pilot places TikTok Shop in direct competition with its existing agency partners that currently provide those services to brands. In September, TikTok made its GMV Max advertising tool mandatory for Shop brands running ads.
TikTok Shop is projected to exceed $23 billion in U.S. sales this year, according to a forecast from EMARKETER. Managed services represent a strategy already common on Douyin and Xiaohongshu in China, Ouwehand said.
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