TikTok Shop, one of the most popular online selling platforms, introduced two major initiatives for UK sellers in July 2025. These updates are designed to improve platform infrastructure and provide additional tools to support seller growth and operational efficiency.
Below is a breakdown of both changes and what they mean for you, as a TikTok Shop seller.
Shipped by Seller Service Fee
TikTok Shop has applied a service fee to parcels shipped under the “Shipped by Seller” (self-shipping) model. For each parcel sent using this method, a £0.50 fee (including VAT) is charged per delivered order.
This fee applies only to UK sellers who choose the “Shipped by Seller” model, which is commonly used for small items shipped in high volumes.
What does this mean for sellers?
- Sellers using this model should include the additional per-parcel fee in their shipping costs.
- The Shipped by Seller Service Fee doesn’t apply to orders fulfilled via Fulfilled by TikTok (FBT) or Shipped via Platform.
- You can find “Shipped by Seller Service Fee” in the Seller Centre under Finance > Settlement Breakdown and Finance > Statements.
This TikTok Shop decision may affect you if you handle small items and frequently ship parcels, especially in bulk, as it will increase overall shipping costs for order fulfillment.
Co-funded Promotions: How It Works in Practice
Co-funded Promotion is a TikTok Shop programme designed to help eligible UK sellers grow faster.
It boosts product visibility through platform-managed discounts, vouchers, and subsidies. You contribute part of the budget, while TikTok Shop decides how and where the money is spent to maximise results.
Who can join
The programme isn’t open to everyone by default.
Sellers can join only if the option is available in their Seller Centre and their Shop Performance Score (SPS) is at least 2.5. TikTok Shop reviews eligibility on an ongoing basis. If a shop’s performance score drops below the threshold after enrolment, participation may be paused or removed.
If you’ve never used Co-funded Promotions before, TikTok Shop may enroll you in a limited free trial. During this period, TikTok Shop covers 100% of promotional costs. Sellers can opt out at any time.
However, if you leave the free trial and later rejoin, you move straight to the co-funded model.
How the co-funded model works
After the free trial, promotions run on a shared-cost basis.
Your contribution is calculated automatically and may change over time. Just go to the Seller Centre to view your current status.
Budget control and reporting
TikTok Shop manages your product selection and budget allocation. The goal is to spend efficiently and improve ROI.
What sellers can see:
- Estimated monthly budgets based on past performance
- Daily performance metrics, including GMV, ROI, seller cost, and contribution ratio
- Detailed reports showing actual spend
Opting in or out
You stay in control of participation.
- Fees are settled through standard payment cycles after delivery
- You can opt in or withdraw at any time in the Seller Centre
- If you withdraw, all related promotions stop immediately
- Seller costs appear in financial reports as “Co-Funded Promotion Fee”
Supporting Sellers’ Growth on TikTok Shop
Selling on TikTok Shop is easier when it is connected to the rest of your business. If you also sell on other marketplaces, automation becomes the foundation for stable operations. Here are the key reasons to automate, and how M2E Multichannel Connect fits in:
- Stop overselling. Real-time inventory sync helps keep stock accurate across platforms.
- Reduce manual updates. Automation eliminates repetitive tasks such as updating product data, quantities, and prices across channels.
- Keep fulfillment on track. Real-time order import and updates help you process orders faster and reduce cancellations.
- Stay consistent during promos and fee changes. When shipping fees or co-funded promotions change your costs, automation helps you keep pricing and availability aligned.
- Manage multichannel from one system. M2E TikTok Shop integration links your store to marketplaces, keeping product, inventory, and order data synchronized.
TikTok Shop is actively working to improve its platform to support sellers at every stage of business development. These new initiatives not only help you reduce shipping costs but also effectively boost sales through powerful marketing tools.
For further information:
- You can contact your account manager or submit a request via the Help Centre.
- For more details about these initiatives and their benefits, visit the TikTok Academy.
Read more about eCommerce insights in our blog and discover how to connect your store to TikTok Shop with our documentation.
