L'ère des super subventions de TikTok Shop touche à sa fin

End of the era of mega subsidies at TikTok Shop

Those accustomed to online shopping on TikTok Shop could soon see a notable change in the prices of items that have long been the charm of this platform. Indeed, a turnaround in the situation is on the horizon with the recent announcement of a significant increase in the fees imposed on sellers by TikTok. From now on, these fees will increase from 2% to 6% on each transaction, and will reach the threshold of 8% from July. Such a modification could well redistribute the cards in the field of e-commerce on the application, impacting both sellers and loyal consumers.

Since its launch in the United States in September, TikTok Shop has generated enthusiasm thanks to its unbeatable offers, benefiting from subsidies for both sellers and buyers. These conditions had allowed a myriad of influencers and entrepreneurs to thrive, positioning TikTok well ahead of giants like Shopify or Amazon in terms of growth in the number of sellers, according to a Similarweb report. However, the platform has also been noted for offers that are sometimes too tempting to be honest, including exotic beauty products or fashion items at ridiculous prices, raising questions about their authenticity.

These recent fee increases could mark a turning point for TikTok Shop, leading it to prove its viability and its ability to survive in the competitive world of e-commerce. TikTok Shop’s long-term success will depend on its ability to continue to attract and retain the small businesses that benefited from these initial incentives, according to Insider Intelligence analyst Jasmine Enberg. The question now is whether these small sellers will be able to adapt to this new financial situation without compromising their business.

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It should be noted that, even after this increase, the fees imposed by TikTok Shop remain lower than those charged by other platforms such as Amazon, where fees can rise between 8% and 20% depending on the product categories. However, the comparison stops there: unlike Amazon, where the purchase of necessities prevails, TikTok Shop excels in impulse discovery, guided by influencers and a suggestion algorithm, more akin to platforms like Temu or Shein .

The challenge is therefore twofold for sellers on TikTok: not only do they have to navigate an ecosystem where captivating video content takes precedence, but they also have to convince an audience looking for entertainment to make a purchase. According to e-commerce expert Michael Yamantino, succeeding on TikTok Shop now requires not only being visible and engaging, but also maintaining competitive prices. Sellers facing higher fees will need to find the delicate balance between raising their prices and maintaining the appeal needed to appeal to TikTok’s customer base, hungry for trendy and affordable finds.

In summary, the TikTok Shop business landscape is on the cusp of a major transformation, one that will test the resilience of its players in the face of changing economic realities, and could redefine strategies to captivate and retain a constantly seeking buyer base new products and good deals.