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TikTok Shop’s Era of Super Subsidies Is Ending
The app’s shopping features won over sellers and shoppers by offering deals that can seem too good to be true. Now TikTok is raising sellers fees, which may translate into higher prices.
Influencers and entrepreneurs embraced the opportunity: TikTok saw a surge of sellers that outpaced growth in vendors at competitors like Shopify and Amazon, according to a March report from SimilarWeb, which tracks web traffic. But from the beginning TikTok Shop has hosted deals that appear too good to be true, such as deeply discounted —and possibly counterfeit—snail mucin skin care products and Stanley tumblers, as well as jewelry, socks, and other odds and ends for less than $1. “The true test for [TikTok Shop’s] longevity and its sustainability will be as these incentives start to roll back,” says Jasmine Enberg, principal analyst for social media at Insider Intelligence, a market research firm.
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