TikTok Shop is an e-commerce marketplace that enables merchants, brands, and creators to showcase and sell products directly on TikTok through in-feed videos, live sessions and the product showcase tab. You need to know what the costs for selling on TikTok Shop Malaysia are before you set up a TikTok Shop. TikTok Shop Malaysia is currently charging all marketplace sellers TikTok Shop Commission Fee, Transaction Fee, and Service Fee. This article will introduce the three TikTok seller fees in detail.

1. Marketplace Commission Fee

a. What is Marketplace Commission Fee?

TikTok Shop Commission Fee is an amount that TikTok Shop charges to all sellers for each successful order in Malaysia, based on rates that differ for each product sub-category.

b. How much is TikTok Shop Commission Fee?

At 10:00, on 1st of September, 2023, Malaysia Time (GMT+8:00), TikTok Shop Malaysia announced their new marketplace commission fee of 1.5%~3% based on product categories on its knowledge hub, excluding value added tax (VAT).

IMPORTANT:

• The Marketplace Commission Fee by Product Category is applied to all successful orders that are created from 10:00, 1st of September, 2023, Malaysia time (GMT+8:00).

• The Marketplace Commission Fee by Product Category in the table above does not include 6% DST.

• All orders created through TikTok’s “Shop” Tab will enjoy 0% Marketplace Commission Fee from 10:00, 11th of August until further notice.
• New sellers on TikTok Shop are exempted from the Marketplace Commission Fee for their first 90 days.

If you have any concerns in TikTok commission fee calculated in your order, you can refer to this article to contact TikTok Shop Malaysia customer service.
 

c. How is the Marketplace Commission Fee calculated?

Formula:
Marketplace Commission Fee = (Item Price - Seller Discount) * Fee Rate

Example:

 

2. Transaction Fee

a. What is Transaction Fee?

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. After an order is successfully delivered to buyers, TikTok Shop will automatically deduct a fee from the final order/payout settlement. This is the Transaction Fee, and is charged to all sellers for processing successful orders in TikTok Shop.
 

b. How much is TikTok Shop’s Transaction Fee?

The Transaction Fee rate is 2.12% (DST included).

c. How is the Transaction Fee calculated?

Formula
Transaction Fee = (Customer Payment - Customer Refund) * 2.12%

Example 1 (Succesfully placed order)


Example 2 (Successfully refunded order)

3. Service Fee

a. What is Service Fee?

Only for sellers who join the Shipping Fee Program, a service fee will be charged for all successfully delivered orders for registered sellers with the stated charges, effective 10:00:00 1st September 2023, Malaysia (GMT+8:00).

b. How much is TikTok Shop’s Service Fee?

The Service Fee is 4.24% (DST included).


Conclusion
Now you know that TikTok Shop Malaysia will charge sellers the transaction fee, commission fee, and service fee (Only for sellers who join the Shipping Fee Program). You can start setting up a TikTok Shop and use BigSeller to manage your store, including quickly uploading products to your TikTok Shop, efficiently processing orders and so on.