Close Menu
Technology Mag

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Bullets Found After the Charlie Kirk Shooting Carried Messages. Here’s What They Mean

    September 16, 2025

    Meta created its own super PAC to politically kneecap its AI rivals

    September 16, 2025

    Google’s new Windows desktop app brings a Spotlight-like search bar to PC

    September 16, 2025
    Facebook X (Twitter) Instagram
    Subscribe
    Technology Mag
    Facebook X (Twitter) Instagram YouTube
    • Home
    • News
    • Business
    • Games
    • Gear
    • Reviews
    • Science
    • Security
    • Trending
    • Press Release
    Technology Mag
    Home » TikTok Shop’s Era of Super Subsidies Is Ending
    Business

    TikTok Shop’s Era of Super Subsidies Is Ending

    News RoomBy News RoomApril 2, 20243 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email

    The days of buying ultracheap stuff on TikTok Shop may be winding down.

    Starting today, the fees TikTok charges sellers increase from 2 percent to 6 percent of the price of each order. They will creep up to 8 percent in July. The changes may mark a crucial moment for people who shop on TikTok and for the platform itself, potentially forcing up prices and testing shopper’s loyalty to the social app’s ecommerce play.

    TikTok Shop launched in the US in September with strikingly low prices compared to other online stores, thanks to its subsidies to sellers and shoppers. Influencers and entrepreneurs embraced the opportunity: TikTok saw a surge of sellers that outpaced growth in vendors at competitors like Shopify and Amazon, according to a March report from Similarweb, which tracks web traffic. But from the beginning TikTok Shop has hosted deals that appear too good to be true, such as deeply discounted—and possibly counterfeit—snail mucin skin care products and Stanley tumblers, as well as jewelry, socks, and other odds and ends for less than $1.

    After a successful holiday shopping season, TikTok Shop’s fee increases see the platform trying to prove it can become a sustainable, habit-forming mainstay in ecommerce. “The true test for [TikTok Shop’s] longevity and its sustainability will be as these incentives start to roll back,” says Jasmine Enberg, principal analyst for social media at Insider Intelligence, a market research firm. “A lot of the sellers that have found success on TikTok Shop are smaller businesses that really benefited from the incentives.”

    If TikTok Shop continues to increase its fees, those sellers may struggle, Enberg predicts. TikTok did not provide a comment on the fee changes for this story.

    TikTok Shop’s seller fees are still lower than many fees for Amazon sellers, which vary by type of product. The lowest are 5 percent, for low-cost apparel, but they generally range between 8 and 20 percent for jewelry and fine art. But TikTok Shop is a different beast than the everything store. While many people turn to Amazon to search for necessities, on TikTok Shop buyers often find products they didn’t know they wanted through influencers and algorithmic discovery—more similar to Temu or Shein.

    TikTok sellers face the additional challenge of needing their pitches to stand out from the parade of loud, viral video content the app services up. Influencers and brands selling through TikTok Shop have to convince people scrolling for entertainment to stop and shop. People are often “in the app to do something completely different,” says Michael Yamartino, an ecommerce expert and CEO of Route, a platform that helps brands ship orders.

    Sellers that respond to higher fees by raising prices may discover that they’ve lost a key ingredient needed for success in TikTok’s ecommerce model. To get TikTok users’ attention and items into their virtual carts, “you have to be loud,” Yamartino says. “You have to be shockingly cheap, shockingly engaging, and super on trend.”

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleMicrosoft is working on an Xbox AI chatbot
    Next Article Best printer 2024, best printer for home use, office use, printing labels, printer for school, homework printer you are a printer we are all printers

    Related Posts

    USA Today Enters Its Gen AI Era With a Chatbot

    September 16, 2025

    OpenAI Ramps Up Robotics Work in Race Toward AGI

    September 15, 2025

    How China’s Propaganda and Surveillance Systems Really Operate

    September 15, 2025

    I Wasn’t Sure I Wanted Anthropic to Pay Me for My Books—I Do Now

    September 15, 2025

    Charlie Kirk Was Shot and Killed in a Post-Content-Moderation World

    September 15, 2025

    Inside the Man vs. Machine Hackathon

    September 10, 2025
    Our Picks

    Meta created its own super PAC to politically kneecap its AI rivals

    September 16, 2025

    Google’s new Windows desktop app brings a Spotlight-like search bar to PC

    September 16, 2025

    Jeffrey Epstein’s Yahoo Inbox Revealed

    September 16, 2025

    Official watch bands for your new Apple Watch are $34 off at Woot

    September 16, 2025
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    News

    The China-US deal for TikTok could take another month to work out

    By News RoomSeptember 16, 2025

    TikTok might not finalize its deal to sell its US operations for at least another…

    Charlie Kirk Shooting Suspect Identified as 22-Year-Old Utah Man

    September 16, 2025

    The Aurzen D1R Cube is the first Roku TV smart projector

    September 16, 2025

    AT&T’s AI call-screening tool uses your call history to filter out spam

    September 16, 2025
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Technology Mag. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.