TikTok Shop will begin collecting a small fee from its sellers in the Philippines. Starting on December 1, each completed order will include an additional charge of Php5.
TikTok says this “order processing fee” will help fund future improvements and ensure the platform’s long term development. The charge is a flat rate of Php5 for every order, regardless of the total cost or how many items a customer buys.
To ease the change for its sellers, TikTok Shop will begin with a lower fee. From December 1, the charge will be only Php3 per order. The company has not announced when the full Php5 fee will take effect.
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This new charge places TikTok Shop alongside its main competitors, Shopee and Lazada. Both of those e-commerce platforms started applying a similar Php5 processing fee on September 3 of this year.
The Philippine e-commerce scene has seen explosive growth recently. Data from Statista shows the market has grown by 400% in the past five years, making it the world’s second fastest growing online retail market. Amazon also recently launched its Bazaar app, aiming to compete with established shopping apps in the country.
Though TikTok Shop entered the market later than its rivals, launching in June 2022, it has quickly become a major player. It is now ranked as the second most popular e-commerce platform in the country, just behind Shopee.