TikTok Shop, one of the most popular online selling platforms, is launching two significant initiatives that will take effect in July 2025.
These changes aim to improve the infrastructure and tools available to UK sellers, helping to enhance sales efficiency and reduce costs. Here are the details of both innovations.
Shipped by Seller Service Fee
Starting from July 15, 2025, TikTok Shop will introduce a new fee for parcels sent by the seller. For each parcel sent via the “Shipped by Seller” model, a fee of £0.50 (including VAT) will be applied.
This rule will apply only to UK sellers who choose the “Shipped by Seller” model (self-shipping), which is often used for small items shipped in large quantities.
What does this mean for sellers?
- If you send parcels via the “Shipped by Seller” model, you will need to account for additional shipping costs.
- This fee does not apply to parcels fulfilled via “Fulfilled by TikTok” (FBT) or “Shipped via Platform”, as these services already include the shipping costs.
This decision may affect sellers who deal with small items and frequently ship parcels, especially in bulk, as it will increase the overall shipping costs for fulfilling orders.
Co-funded Promotions: A New Tool to Increase Sales
Starting from July 1, 2025, TikTok Shop will launch a powerful new tool, Co-funded Promotions, which will allow UK sellers to increase sales through exclusive coupons and subsidies from the platform.
All sellers who join the program will automatically receive a 14-day free trial.
Key details:
- During the free trial, 100% of the promotional costs will be covered by TikTok Shop.
- From July 15, 2025, the program will transition to a co-funded model, where TikTok Shop will cover 75% of the promotional costs, and the seller will contribute just 25%.
- Sellers can use exclusive coupons, subsidies, and optimized promotions to attract more buyers and boost sales.
Results from the pilot program:
- 14x return on investment (ROI), meaning a significant increase in sales for a small investment in advertising.
- 11% growth in new customers among sellers who participated in the pilot program.
How Co-funded Promotions works:
- TikTok Shop strategically allocates your budget across exclusive promotions and additional subsidies to achieve the best results.
- You can opt out of the program or re-enroll at any time, offering flexibility in how you use the tool.
Why Automation Is Crucial in the Face of New Demands
As platform requirements and fees rise, automation has become essential for sellers to maintain smooth operations. Here’s why:
- Cost reduction & operational efficiency: Automation helps streamline processes, reduce costs, optimize operations, and ensure that tasks are performed efficiently.
- Adaptability to policy changes: With frequent updates to platform policies and fees, automation enables quick adjustments, ensuring your business remains aligned with the evolving landscape of TikTok Shop.
- Effective management of orders, pricing & inventory: TikTok Shop’s new fees and promotional tools require precise management of orders, prices, and inventory. Automation ensures seamless handling of these critical elements, maintaining business continuity.
- M2E Cloud integration: M2E Cloud offers simple solutions for TikTok Shop integration, enabling sellers to automate order management, pricing, and inventory control. By syncing your data across multiple channels, M2E Cloud reduces administrative burden and guarantees real-time updates, ensuring smooth order fulfillment despite changing requirements.
Supporting Sellers’ Growth on TikTok Shop
TikTok Shop is actively working to improve its platform to support sellers at every stage of business development. These new initiatives will not only help sellers reduce shipping costs but also effectively boost sales through powerful marketing tools.
For further information:
- You can reach out to your account manager or submit a request via the Help Centre.
- For more details about the new 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.
