Although launched later than many other competitors, TikTok Shop is gradually asserting its position and becoming a formidable competitor to major e-commerce platforms in Vietnam such as Shopee, Lazada, etc. If you are planning to start a business on TikTok Shop, don’t miss this article. Today, Optimalmk explore how much does it cost to sell on TikTok shop?, including costs and things to keep in mind when joining this platform!
How much does it cost to sell on TikTok shop?
So, is there a fee for selling on TikTok Shop? This is a question that many store owners ask. Like other platforms such as Shopee, Lazada, Tiki, and TikTok Shop also collects fees from sellers upon successful delivery. This fee is understandable because TikTok Shop is a similar e-commerce site.
However, since its launch, TikTok Shop’s fee is quite attractive, only 1% of the total value of the order. According to information from TikTok Shop, this fee includes technical services such as online payment, refunds, settlement and other platform functions. When settling with the seller, 1% of each order will be deducted as a payment processing fee for the payment service provider.
Compared to other e-commerce platforms with fees ranging from 8-14%, TikTok Shop’s fees are very attractive to store owners. This explains why, although newly launched, the TikTok Shop sales channel has attracted a large number of registered and active store owners recently.
However, in October, starting at 0:00 on October 17, 2022, TikTok Shop will make some important adjustments to the transaction fees applicable to sellers.
Specifically as follows: The current transaction fee is 1% (tax included) and will be adjusted to 2.5% (tax included).
This new transaction fee will apply to all domestic sellers and all orders and products on TikTok Shop Vietnam. The new transaction fee will take effect from 0:00 on Monday, October 17, 2022 (Vietnam time_GMT + 7:00). Orders placed before this time will not be subject to new transaction fees, regardless of when the order is successfully paid.
The transaction fee calculation formula will be as follows: 2.5% of the total order value.
Transaction fee = (Total payment amount from customer – Total refund amount to customer) * 2.5%.
How to sell on TikTok shop
Create a personal channel on TikTok and set up a sales profile
Creating a personal channel on TikTok and setting up a sales profile are the initial steps to doing business on TikTok shop better. This helps you build your brand and create an environment of connection with potential customers.
Building a personal channel on TikTok and setting up a sales profile not only helps you showcase your brand and products creatively but also creates an interactive space with potential customers. This can increase your chances of making sales and building long-term relationships with future customers.
Steps to register for a TikTok Shop account
Here are the steps to register for a TikTok Shop account:
- Tap and tap on the TikTok Shop Seller page
- Click the Sign-Up button to open a TikTok Shop account.
- Fill in all personal information when requested by the application.
- Click Submit and wait for TikTok to approve and complete the process of opening your sales account.
Select products to sell on TikTok Shop
Choosing products to sell on TikTok Shop is an important part of defining your business strategy, ensuring that you can attract interest and reach potential customers effectively. This helps you determine your business goals, target customers, and how to reach the market.
With TikTok being an application mainly for watching videos, with a diverse audience from children to the elderly, not all products are suitable for sale on TikTok Shop. Consider and research the market carefully to choose a product that suits your goals and abilities.
Search for customer sources
Finding customers is an indispensable part of doing business, regardless of whether you operate on TikTok Shop or any other online platform. On TikTok, you can use some of the following factors to effectively find and attract customers:
- Create unique and engaging content.
- Choose hashtags that best fit the content.
- Create challenges or contests to increase engagement.
- Use music and effects to make your video stand out.
- Create educational and instructional content.
- Interact regularly with your community of viewers.
- Consider paid advertising to increase your reach.
Create sales videos on TikTok Shop
Creating sales videos on TikTok Shop has the main purpose of creating interest, interaction, and stimulating shopping from viewers. When creating a sales video on TikTok Shop, there are some important things to pay attention to if you want your content to stand out, have good interaction, and bring a lot of value to viewers, including:
- Create attractive and relevant content for the product.
- Demonstrate the value of the product.
- Choose product recommenders that connect with viewers.
Write appropriate captions for sales videos
Writing appropriate captions for sales videos on TikTok Shop is also an important part of creating product understanding, stimulating interest and promoting interaction. For your caption to attract more viewers, you need to focus on the following factors:
- Make sure your caption is short, complete, and easy to understand.
- Choose words that are likely to attract the attention and curiosity of the viewer.
- Use hashtags that are relevant to the products you are selling.
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