‍What is Co-Funded Free Shipping?

Starting August 26, 2024, Co-Funded Free Shipping will replace our current free shipping program. With this new program, shoppers will still receive free shipping after reaching the minimum order value threshold. TikTok Shop and sellers will share the shipping costs.

All sellers with a Shop Performance Score of 2.5 or higher, and new sellers without a Shop Performance Score, will be automatically enrolled in the Co-Funded Free Shipping program. Sellers can opt-out, but this only applies to TikTok Delivery and Seller Delivery orders. TikTok Delivery (FBT) orders will be automatically enrolled. Sellers who opt-out will not receive any co-funding and will be responsible for all shipping costs.

Benefits of Joining Co-Funded Free Shipping

We encourage sellers to participate in this program, which offers several benefits:

• Access to Exclusive Shipping Rewards: This program gives sellers access to TikTok Shipping Rewards, which help reduce shipping costs for qualified orders.
• Increase Sales Opportunities: Market data shows that 62% of customers are less likely to purchase a product that includes shipping costs. By offering free shipping, you can effectively increase sales.
• Increase Product Awareness: TikTok Shop will provide special “Free Shipping” labels for participating products. This allows shoppers to easily recognize them in shopping videos, shopping tabs, and live streams, which may translate into higher purchase conversions.

For a limited time, for all sellers who join the program, the first 500 qualifying orders placed in 2024 will be eligible for higher shipping reimbursement. This includes up to $6 per order for TikTok shipping and seller shipping, and full reimbursement for each order for TikTok delivery. New and existing TikTok Distribution Sellers are also eligible for an additional 500 TikTok Distribution orders paid in full by the TikTok Shop.

Can all sellers join the Co-Funded Free Shipping program?

To qualify for the Co-Funded Free Shipping Program, sellers must have a Store Performance Score of 2.5 or higher. New sellers who have not yet earned a Store Performance Score will be allowed to join the program. However, they will need to maintain a Store Performance Score of 2.5 or higher to continue to qualify for the Co-Funded Free Shipping Program.

How does the Co-Funded Free Shipping Program work?

Step 1: Shoppers are eligible for Free Shipping when they meet the Free Shipping Threshold

Shoppers will be eligible for Free Shipping on orders with a value of $30 or more.

Step 2: Seller meets order requirements to receive a TikTok Shop refund

For TikTok Delivery and Seller Delivery:

• Standard: Zones 1-6: 6 calendar day delivery
• Zones 7/7+: 7 calendar day delivery
• Express: 4 calendar day delivery
• Free Economy: No reimbursement from the TikTok Shop

For TikTok Delivery (FBT): FBT Sellers do not need to meet order delivery time requirements to receive co-funded free shipping. FBT Sellers do not need to meet order delivery time requirements to qualify for co-funding, as FBT handles both their distribution and shipping.

Step 3: Seller receives reimbursement from TikTok Shop and pays the remaining shipping costs

For TikTok Distribution (FBT): TikTok Shop covers up to 70% of the FBT distribution costs. The fees on the rate sheet represent the Seller's responsibility after a TikTok contribution.

If Sellers set their own lower free shipping thresholds, Sellers will be responsible for the full cost of shipping for orders that do not meet the $30 free shipping threshold.

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Co-Funded Free Shipping Order Value < $30

• Order Value >= $30
• Shopper Shipping Shipments: Shopper pays for shipping
• Free Shipping
• Seller Shipping Shipments: Sellers do not need to co-fund
• Seller Co-Payment for shipping since the shopper pays for the shipping

The TikTok Shop may have additional lower free shipping threshold promotions for specific users or campaigns, such as offering free shipping to new shoppers.

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More examples of reimbursing express shipping through TikTok Shipping

Case: Courier Shipping

• Order Weight: 3 lbs
• Distance: 500 miles
• Service: Courier Shipping
• Courier Shipping: $15.66
• Co-funded Free Shipping Reimbursement: $2.00

More examples of reimbursement for split packages through TikTok Shipping?

Case 1: A customer order is delivered via multiple packages.

Case 2: A shopper orders multiple items from the same store, but the order is split into multiple orders because the items are shipped from different warehouses.

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Other Questions

Does co-funding free shipping replace end-to-end delivery performance requirements?

Co-funded Free Shipping and End-to-End Delivery Performance Requirements are two separate programs with two different Service Level Agreements (SLAs). For stores using Seller Delivery, there is no change to the current policy on End-to-End Delivery Performance. Sellers must adhere to delivery performance that meets the specified thresholds outlined in the article above.

Will co-funding free shipping replace performance on the late shipment rate policy?

No. The Co-Funded Free Shipping and Late Shipping Rate policies are separate programs with different Service Level Agreements (SLAs). There are no changes to the current Late Shipping Rate policy regarding order processing times. In order for U.S. sellers to meet the 3 business day Ship-to-Ship (TikTok Store) SLA or the Dispatch SLA, they must package the ordered product for shipment, affix a shipping label to the package of the ordered product, add tracking information in the Seller Center, and deliver the package to the Logistics Service Provider by 11:59:59pm local time on the third business day after the order date.

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