29/08/2024
Co-Funded Free Shipping
Co-Funded Free Shipping will replace our current free shipping program with a phased rollout. This new program will be the most cost-effective way for sellers to provide free shipping on qualified orders, with TikTok Shop funding a portion of the shipping cost.
Sellers should offer free shipping in order to:
Attract Customers: 62% of shoppers won't consider purchasing if free shipping is not offered¹.
Increase Sales: 48% of shoppers abandon carts due to shipping fees and extra taxes².
Improve Customer Satisfaction: 80% of shoppers expect free shipping when ordering a certain dollar amount of products, and 66% expect free shipping for all online orders³.
How will Co-Funded Free Shipping work?
For all qualified orders, you will receive co-funding based on your fulfillment method: Fulfilled by TikTok, TikTok Shipping, or Seller Shipping. If you're using TikTok Shipping or Seller Shipping, you will receive a reimbursement of up to $2 in your settlement account once the order is delivered. If you are using Fulfilled by TikTok, your new fulfillment rate card effective today is inclusive of the co-funding, eliminating the need to wait on reimbursements. Because of the phased approach, TikTok Shipping and Seller Shipping sellers may still see some orders reimbursed at the full subsidy rate. We expect all orders to fully transition to the new reimbursement rate by September 16.
Exclusive Co-Funded Free Shipping Promotion
For all sellers who join the program, the first 500 qualified orders placed in 2024 can receive higher reimbursement for shipping costs, up to $6 per order for TikTok Shipping and Seller Shipping, and the full cost per order for Fulfilled by TikTok. New and existing Fulfilled by TikTok sellers can also enjoy an additional 500 Fulfilled by TikTok orders fully paid for by TikTok Shop.