As TikTok Shop continues to grow in the U.S. market, the platform policy is constantly adjusting to meet market demand. Recently, TikTok Shop announcedIncrease the free shipping threshold for returning customers from $20 to $25, while the free shipping threshold remains at $5 for first-time customers. This policy change is intended to encourage consumers to purchase more products, increase the order value, and thus increase seller sales. At the same time, this means that sellers need to strike a balance between pricing and shipping costs to attract more consumers.
It's worth noting that this price increase doesn't apply to all buyers, and some users have different thresholds for in-app offers on TikTok. At the same time, free shipping is no longer applicable when it is recognized that the shipping cost exceeds the "fair market**". In addition, the platform has also adjusted the freight subsidy policy on the seller side accordingly to encourage sellers to improve logistics performance and reduce operating costs.
Source: Internet.
If you choose to ship through your own carrier instead of TikTok's preferred ** provider, only stores that have reached the logistics performance indicators in the past 30 days will have a platform delivery subsidy, as detailed below:
1. The average end-to-end delivery time is 144 hours (delivery within 6 days).
2. DNR 1%, order loss rate is less than 1%.
3. Completed delivery order 100
4. The store registration time is more than 30 days
Although TikTok Shop has raised the threshold for free shipping, the platform is still gaining momentum in the US market. Since testing in the U.S. in November 2022, TikTok Shop has achieved remarkable results in a short period of time. According to Sensor Tower data, TikTok users increased by 230% year-on-year in the fourth quarter of 2023, and the number of active users has now reached 1.4 billion, and the number of active sellers has also grown to 6 million. This fully demonstrates the huge potential and influence of TikTok in the North American market.
After adopting shipping subsidies and other incentives to attract sellers to settle in and carry out initial user accumulation, in order to achieve sustainable development and profitability, TikTok Shop has made efforts in policy adjustments. TikTok also acknowledges in its documents,Its free shipping subsidy won't last forever. In the event of a change in the plan, "every effort will be made to provide adequate notice to the seller".
In addition to the freight subsidy policy, TikTok USA has also introduced policies related to the collection of security deposits by fully managed merchants and the increase of sales commissions for goods from 2% to 8%, all of which highlight the platform's goal of creating a healthy and sustainable e-commerce environment.
Source: TikTok Shop cross-border e-commerce.
TikTok Shop is still in its infancy in the U.S. market and has huge growth potential. In the face of policy adjustments and market changes, sellers need to constantly adjust their strategies to adapt to platform policies and market demand. PassedOptimize merchandising strategies, reduce operating costs, and focus on logistics performance metricsand other means, sellers can achieve better results on TikTok Shop. In the future, TikTok plans to expand its U.S. e-commerce business tenfold to $17.5 billion. To this end, the platform will continue to adjust policies and optimize services to attract more sellers and consumers. In this process, sellers need to keep up with the changes in platform policies, grasp market opportunities, and realize the layout of the US market in TikTok Shop.
In addition, sellers can also passCooperate with excellent service providers to further improve the efficiency of logistics, after-sales and other linksto provide consumers with a better shopping experience.