TikTok shop will collect a deposit from merchants, which will be implemented on September 15, with a maximum deposit of about 32,000 yuan

Recently, TikTok announced that TikTok shop will collect store deposits from all cross-border merchants starting September 15, 2022. The reason is to create a positive and good shopping environment for merchants, brands, and consumers on the platform, prevent merchants from violating terms of use, laws, regulations, rules, policies or other requirements during the operation of TikTok shop, and promote merchants to better serve consumers.

All cross-border sellers who sell goods on TikTok Shop need to pay a deposit. Only after paying the deposit can they conduct business on TikTok Shop. In addition, if the seller has stores in different countries, the seller needs to pay a store deposit in each country separately. The specific amount of the deposit is determined by the business scope of the store.

According to statistics, there are 20 first-level categories of goods that require deposits , and 220 third-level categories of goods, involving six countries including the United Kingdom, Singapore, Malaysia, the Philippines, Thailand, and Vietnam. Among them, the deposit for the United Kingdom is denominated in pounds, and the deposits for the other five Southeast Asian countries are denominated in US dollars.

The deposit will be collected based on the different countries and risk levels of the categories operated by the seller. If the same store operates multiple categories, the deposit will be collected based on the highest risk category, and no deposit will be added. In terms of the deposit amount, the highest fees are currently charged for baby strollers, beauty sets, hair dryers, massagers, computer machines, hand-painted DIY and other products in the UK, with a deposit amount of 4,000 pounds, equivalent to about 32,000 yuan.

In addition, the deposit amount required for the same product in different countries is different. For example, for maternal and child products - baby dresses, the deposit required in the UK is 2,000 pounds, while the deposit in Singapore is 2,500 US dollars, and the deposit in Malaysia, the Philippines, Thailand, Vietnam and other countries is 625 US dollars.

On September 15, the TikTok Shop deposit recharge entrance was opened. The payment entrance is: TikTok Shop Seller Center - Assets - Deposit. The payment period is from September 15 to October 7. Failure to pay the deposit on time will affect the normal business activities of the seller, such as the inability to complete product releases, bind influencers, and complete the release of new products. If the payment is not made in time after receiving the platform's reminder, the impact on the merchant will be further escalated, and the seller's products may be removed from the shelves, and the e-commerce rights to bind influencers will be revoked.

However, judging from the deposit requirements for product categories, not all products require a deposit. For example, most hardware tools sold in the UK, such as axes, hammers, utility knives, pliers, sports collectibles magazines, manual shaving tool sets, security and labor protection products, etc., currently do not require a deposit.

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