In recent years, TikTok has rapidly evolved from a social media platform known for its viral dance challenges and short-form videos into a powerful eCommerce marketplace. TikTok Shop has gained popularity among sellers and buyers alike, particularly in Malaysia. Starting 5th September 2024, TikTok Shop Malaysia is revising its Transaction Fee and Commission Fees. TikTok Shop sellers must understand the changes to optimise business strategy and leverage this platform to grow.
This blog will break down everything you need to know about TikTok Shop Malaysia Commission Fees for 2024:
1. What are TikTok Shop Malaysia Commission Fees?
2. Commission Fee Structure for 2024
3. How is The Commission Fee Calculated?
4. Additional Fees to Consider
5. How to Check the Fees Charged by TikTok Shop?
1. What are TikTok Shop Malaysia Commission Fees?
Commission fees on TikTok Shop are a percentage of the total sale amount that TikTok charges sellers when a product is sold through the platform. These fees are typically set based on the category of the product being sold, and each category might have different commission rates.
2. Commission Fee Structure for 2024
TikTok Shop collects a fixed fee per order item. After an order is successfully delivered to buyers, TikTok Shop will automatically deduct a fee from the final order/payout settlement. This is the Marketplace Commission Fee, and is charged based on rates that differ for each product sub-category.
The Marketplace Commission Fee rate by product cluster, is:
| Commission (before 00:00, September 5th, 2024, Malaysia time, all sellers) | Marketplace Commission (from 00:00, September 5th, 2024, Malaysia time, Marketplace sellers only) | Mall Commission (new from 00:00, September 5th, 2024, Malaysia time, Mall sellers only) | |
| Electronics | 2.70% – 4.32% | 4.86% – 9.18% | 8.10% – 12.42% |
| Fashion | 4.32% | 8.10% – 10.26% | 11.34% – 13.5% |
| FMCG | 0.00% – 4.32% | 6.48% – 11.34% 0% for Baking, Fresh & Frozen Food, and Staples & Cooking Essentials | 3.24% – 14.58% |
| Lifestyle | 3.24% – 4.32% | 6.48% – 10.26% | 9.72% – 13.5% |
Source: TikTok Shop Academy
3. How is The Commission Fee Calculated?
This commission fee is calculated from the item price, minus any seller discounts. Shipping fee and TikTok Shop platform discounts are not included as part of the calculation of the commission fee.
The formula is as follows:
Source: TikTok Shop Academy
4. Additional Fees to Consider
In addition to the commission fees, sellers on TikTok Shop Malaysia should be aware of other potential charges:
a) Transaction Fees
This transaction fee is charged from payment gateway & processors, who securely accepts payment from buyers after verifying their successful payment through online banking, credit card processing & other payment methods.
Effective at 00:00 on September 5th, 2024, the transaction fee will be revised from 2.16% to 3.78%. The transaction fee is calculated as 3.78% (inclusive of SST) of the final order amount paid by the buyer (inclusive of shipping fee), rounded up to 2 decimal places. TikTok Shop will deduct the transaction fee automatically from the sellers’ payout when an order is completed.
Source: TikTok Shop Academy
b) Shipping Fee Program
Starting from 00:00, 1st March, 2024, those sellers who join the Shipping Fee Program, a 5.4% service fee will be charged for all successfully delivered orders* for registered sellers with the stated charges.
*Note: Inclusive of 8% SST, capped at RM5 per order.
5. How to Check the Fees Charged by TikTok Shop?
SiteGiant Payment Reconciliation allows you to conveniently identify your overcharged fees, late payments, and unpaid payments in your TikTok Shop store. With this feature, you can review the details of the commission fees charged by TikTok Shop.
Source: SiteGiant Seller Center
TikTok Shop Malaysia presents exciting opportunities for eCommerce sellers, but understanding its commission fees is crucial for success. By factoring in these costs and leveraging TikTok’s unique features, you can maximise your profitability in 2024 and beyond. Keep an eye on evolving fee structures and continuously refine your strategies to stay ahead in the competitive eCommerce landscape.
