886TikTok Shop recently announced two important policy updates, which will be implemented starting July 2025: First, a service fee will be charged for "seller self-delivery" orders, and second, the platform-led "joint funding" promotion plan will be officially launched.
From these changes, it is clear that TikTok Shop is further standardizing its logistics system and improving fulfillment experience, while increasing traffic support for high-quality products and stores.
Image source: Internet
Sellers will be charged for shipping, fulfillment methods may diverge
Starting from 0:00 on July 15, TikTok will charge a service fee of £0.50 (including tax) per item for all "seller self-delivery" orders.
Compared to the previous default mode of free seller shipping, this means sellers will now face explicit cost choices regarding fulfillment methods. Sellers using TikTok's official logistics (FBT) or platform-partnered logistics are not affected by this fee, as related costs are already included in service charges.
The platform is clearly guiding sellers toward a standardized logistics system. For many small and medium-sized merchants relying on third-party overseas warehouses and self-shipping models, this seemingly small service fee could, when accumulated, significantly squeeze profit margins. For sellers already using FBT, this actually means a clearer cost structure and more platform support.
Whether sellers need to reassess their fulfillment strategies has become an urgent decision.
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Joint funding promotion goes live, bringing a "semi-managed" growth lever
TikTok Shop is also launching the "joint funding promotion plan," which enters a free trial phase from July 1, and after 14 days, moves to a stage where both the platform and merchants co-invest. Through TikTok Shop's affiliate marketing, coupon subsidies, and other forms, merchants can quickly leverage content traffic and drive order growth.
During the free period, the platform covers all promotion costs; after entering the official phase, the platform covers 75%, and sellers only need to pay 25%. For small and medium-sized merchants with limited budgets but hoping to boost sales, this is a powerful tool for testing new products and increasing conversions. It is clear that TikTok is strengthening the "platform-led growth" feature in the content e-commerce ecosystem, supporting sellers who are highly motivated and have mature mechanisms.
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The signals behind this round of policy changes
From charging to subsidizing, this seemingly contradictory two-way move by TikTok Shop actually reveals the platform's strategic restructuring direction for the e-commerce ecosystem.
On the logistics side, the platform wants sellers to adopt its controllable, standardized fulfillment system; on the marketing side, the platform uses financial subsidies to help high-quality products quickly move from "listing" to "scaling up."
Based on this, those still operating with a "listing in bulk" approach will find it harder to receive systematic support in the future, while sellers who can quickly understand the platform's pace and proactively cooperate with resource allocation will gain stronger survival and growth capabilities.
Image source: Internet
Recommendations for Chinese sellers
For Chinese merchants who are planning for TikTok Shop or already deeply engaged on the platform, this round of adjustments is both a reminder and an opportunity.
First, it is important to reorganize fulfillment methods and cost structures, and assess whether switching to FBT is more cost-effective. Second, during the initial phase of the joint funding policy, participate in the free trial as soon as possible to seize the traffic dividend. At the same time, pay attention to the platform's support strategy and rhythm, actively participate in official activities, and use recommended resources to gain stronger exposure weight.
If Chinese cross-border merchants can seize this opportunity, make reasonable use of policies, and optimize fulfillment and promotion structures, they may achieve new business growth through TikTok in July.
