With the continuous development of TikTok Shop in the US market, frequent adjustments to the platform's policies have become the norm, and its main purpose is to better serve customers. However, this can also present a range of challenges for sellers. In this context, sellers need to closely cooperate with the changes of the platform, and adopt the strategy of opening up sources and reducing expenses by improving operational capabilities and reducing operating costs, in order to achieve greater breakthroughs while adapting to the development of the platform.
TikTok Shop official release notice——
A transition rate of 6% per order is available from April 1 to June 30, 2024to help sellers adjust accordingly.
2. From July 1, 2024, the referral fee will be converted to 8% per order.
The changes in the commission system mainly involve the following categories:
1. Electronic product categoryThe commission is adjusted to 6%.
2. Second-hand suppliesCommission 5%.
3. CollectiblesThe commission is adjusted to 6%.
According to this series of adjustments, it can be deduced that TikTok Shop is now beginning to move towards a profitable stage, and it is expected that the platform will increase the proportion of sellers' commissions in the future, which may further weaken sellers' profit margins. In this case, sellers need to adjust their operation plans appropriately according to the adjustment of policies. In order to effectively cope with the challenges of platform policy adjustments, sellers need to further optimize the cost structure of TikTok Shop, including procurement costs, operating costs, and logistics costs.
However, it is undeniable that TikTok Shop's growth momentum in the US market remains strong. In the first week of the beginning of 2024 alone, the best-selling GMV is close to $2 million, which is staggering. With a huge user base and high spending power of American users, the development potential of TikTok Shop cannot be ignored. Although the commission policy is about to be adjusted and changed, TikTok's small store in the United States still brings a lot of sales shock to many merchants, and some people even describe it as "TikTok for one day, Amazon for a year", which can't resist more and more merchants turning their business to TikTok's local stores in the United States.
However, TikTok U.S. local corporate stores have a certain entry threshold, requiring that the stores must be U.S. citizens or U.S. companies with more than 75% of the shares owned by U.S. citizens. If you want to use TikTok as a way to expand your business overseas, inA local TikTok business store in the United StatesOpen a store, overseas entity registration, or U.S. account openingIf you have a strong need for it, you can contact QBIT to get a full set of TikTok compliance operation solutions in the United States. Follow Qbit for more financial solutions.
Review of previous articles:
What is the current status of TikTok's small store in the United States?
Fully managed vs self-operated, how to choose the operation model of TikTok's small store in the United States?
TikTok's small store in the United States, which continues to explode, is it worth entering?