TikTok's Co-Funded Free Shipping Program
Co-Funded Free Shipping program starts from August 26, 2024. With Co-Funded Free Shipping, shoppers will still enjoy free shipping once they reach the minimum order value threshold, while TikTok Shop and sellers share the shipping costs.
Effective August 26, 2024, all sellers with a Shop Performance Score of 2.5 or higher, as well as new sellers with no Shop Performance Score will automatically be enrolled in Co-Funded Free Shipping. Sellers will have the option to opt out, which will only apply to TikTok Shipping and Seller Shipping orders. Fulfilled by TikTok (FBT) orders will remain automatically enrolled in the program. Sellers who opt out will not receive any co-funding and must cover all of their shipping costs.
For all sellers who join the program, the first 500 qualified orders placed in 2024 can receive higher reimbursement for shipping costs, up to $6 per order for TikTok Shipping and Seller Shipping.
Learn more at TikTok Shop: Co-Funded Free Shipping
How TikTok subsidy is reflected in order detail
For orders that qualify under TikTok Shop’s Co-Funded Free Shipping program or other promotional programs, TikTok automatically applies the discounted amount as either a “TikTok Shop Discount” or “TikTok Shop Shipping Fee Discount” on the order details.
TikTok then reimburses the discounted amount to the seller as a “TikTok Subsidy,” which is reflected on the seller’s financial page for transparency and tracking purposes. You can learn more about the reimbursement details and timeframe at TikTok Shop Reimbursement Eligibility.
Seller Shipping and TikTok Shipping Settlement
TikTok Shipping: The reimbursement will show as "TikTok Shop shipping incentive (Co-funded)" in the billing
Seller Shipping: The reimbursement will show as "Shipping fee subsidy (Co-Funded)" in the billing
The reimbursement will be issued after all packages have been delivered and eligibility requirements are met.
For this amount, as seller will eventually receive this part of the revenue, ShoppeDance will report it as order revenue or shipping revenue in Shopify.
