Juphy’s Weekly E-Commerce News Express – 05-09 August 2024
Ceyda Duz
In this week’s e-commerce and AI news recap, TikTok Shop’s increased seller fees and the Turkish government’s new e-commerce taxes on foreign online purchases take center stage. Plus, get the latest product updates from Flaunt, Paymob, and Mercari. Read all now to stay informed on the latest trends and insights in online shopping, retail, and AI.
TikTok Shop UK Increases Seller Fees
On September 2nd, TikTok Shop sellers in the United Kingdom will experience a shift in their commission fees, which will rise from the current 5% to 9%. This marks the first fee adjustments since TikTok Shop began operating in the UK in 2022. The lower fee was originally implemented to attract sellers to the platform and help it gain traction in the competitive e-commerce market and social commerce environment. Despite the increase that is going to happen in September, TikTok Shop’s fees remain competitive compared to other major online platforms, though the change will undoubtedly impact seller strategies.
Implications for Sellers and Market Position
The increase in commission places TikTok Shop’s fees in the industry’s mid-range. While still competitive, this fee structure may create challenges, especially for those selling in categories like consumer electronics. Unlike other marketplaces that offer variable fees based on product categories, TikTok Shop maintains a balanced and stable fee, which might lead sellers in certain sectors to reconsider selling on TikTok Shop. The uniform fee across all product categories could make TikTok Shop less attractive for sellers in high-cost categories, prompting them to explore alternative platforms that offer more favorable terms.
New Seller Missions Program: A Way to Lower Fees
To ease the burden of the new fee increase and encourage more engagement on the platform, TikTok Shop is rolling out a new program called Seller Missions. This initiative allows sellers to earn reduced fees by achieving specific targets related to TikTok Live sessions and shoppable video content. By fostering greater interaction and content creation, TikTok Shop aims to deepen its role as a platform where discovery and commerce intersect.
The Seller Missions program encourages sellers to produce more live content and videos, aligning with TikTok’s goal of becoming a leader in discovery commerce. This program also opens up opportunities for collaboration between sellers and creators, helping to drive both reach and sales. Sellers who meet their content goals can benefit from lower commission fees, making this program an attractive option for those looking to optimize their costs while increasing their presence on the platform.
Strategic Investment in TikTok Shop’s Future
According to TikTok Shop UK, the fee increase is a strategic move designed to fund future improvements to the platform. The additional revenue will be reinvested into improving the marketplace’s infrastructure, expanding services, and offering better support to its sellers. The new fee structure, coupled with initiatives like Seller Missions, is expected to advance content creation and increase sales, ultimately benefiting those who actively engage with the platform’s features.
The upcoming changes are part of a broader effort to position TikTok Shop as a key player in the e-commerce space, not only in the UK but across Europe as the platform prepares for further expansion. With TikTok Shop set to launch in new markets like Ireland and Spain later this year, sellers are encouraged to adapt to the new fee structure and leverage the Seller Missions program to maximize their success on the platform.
As TikTok Shop evolves with its strategic moves, sellers will have to take advantage of the new opportunities presented by the platform’s growing ecosystem. The next few months will be important as TikTok Shop seeks to establish itself as a leading marketplace in Europe, offering innovative ways for sellers to engage with a dynamic and interactive community.
Turkey’s New Taxes to Limit Foreign Online Purchases
The Turkish government is rolling out new tax policies aimed at decreasing the number of online purchases from international e-commerce platforms like Temu and AliExpress. Import duties will see a sharp increase, and the tax-free import limit will be significantly lowered. These changes are part of an effort to strengthen Turkey’s domestic e-commerce market, which saw a significant rise in online spending last year, driven by both inflation and organic growth.
Higher Import Duties and Reduced Exemption Limit
As of August 21, import duties on packages from European countries will rise to 30%, up from 18%. For goods from outside the EU, the duty will double from 30% to 60%. These increased rates will apply to items delivered by mail or express carrier services to individuals in Turkey. In addition to the higher duties, the tax exemption threshold for imports will drop from 150 euros to 30 euros. This change means Turkish consumers will now face additional costs on smaller international orders, encouraging more spending within the country’s borders.
Extra Tax on Luxury Items
The government is also introducing an additional fixed tax on certain categories of goods, particularly luxury items covered by the Special Consumption Tax Law. These products will incur an extra 20% tax, making them more expensive for Turkish buyers and further promoting local purchases.
As Turkey’s e-commerce market continues to grow, these new taxes are intended to protect local businesses from the rising influence of foreign retailers. The government hopes that these measures will channel more consumer spending towards domestic e-commerce, supporting local economic growth.
Paymob and Shopify’s Embedded Payments
Paymob, a financial services platform in the Middle East and North Africa, has expanded its partnership with Shopify by launching embedded card and wallet payments for merchants in the MENA region. This new feature allows for seamless transactions, enhancing the e-commerce experience for Shopify merchants. Additionally, Paymob has introduced digital merchant onboarding, enabling quick and easy setup of e-commerce stores on Shopify, further supporting the growth of online businesses in the region.
Flaunt’s AI Loyalty Solution
Flaunt has introduced an AI-powered loyalty service for Shopify merchants, marking the first service-as-software offering in this space. This solution helps merchants retain customers and implement effective loyalty programs using AI to analyze social media, user-generated content, and customer feedback. Flaunt’s platform also generates personalized offers, making it easier and faster for merchants to manage and optimize their loyalty initiatives.
Mercari Expands Access to Japan and Opens First U.S. Store
Mercari, an online marketplace for new and preloved items, has unveiled “Mercari x Japan“, a new feature that allows U.S. shoppers to access inventory directly from millions of sellers in Japan. This gives shoppers the opportunity to discover rare and hard-to-find items from the Japanese market. In addition to this expansion, Mercari is also opening its first physical retail store in Los Angeles, bringing a new dimension to its shopping experience.
Track Performance with Juphy AI
The world of e-commerce is constantly evolving, and with AI revolutionizing the industry, the race to create exceptional online shopping experiences has intensified. While AI chatbots are now the talk of the town for their ability to act like in-store sales reps, it’s essential to measure their true impact. Wondering how your AI chatbot is performing after implementation? With Juphy’s AI Shopping Assistant, tracking performance is just a click away. Beyond offering personalized product recommendations and driving 24/7 sales, Juphy AI provides an advanced reporting page that lets you monitor its effectiveness on your Shopify store. Easily access key metrics like conversations that led to sales, product recommendations, ROI, AOV, and whether sales were made during the day or night. See the real impact Juphy AI is having on your store, and simplify your path to success. Don’t wait – boost your Shopify sales and experience the ease for yourself. Try Juphy AI now: apps.shopify.com/juphy
Key Takeaways
TikTok Shop UK Increases Seller Fees: Starting September 2nd, TikTok Shop will increase commission fees in the UK from 5% to 9%, aiming to attract more sellers and enhance platform services. Despite the hike, TikTok Shop remains competitive with its uniform fee structure across all categories.
Turkey Implements New Taxes for E-Commerce: Turkey is rolling out new tax policies to curb imports and promote domestic e-commerce. Starting August 21, import duties will increase significantly, and the tax-free import limit will drop from 150 euros to 30 euros. Additional luxury item taxes are also planned to encourage local spending and support Turkish businesses.
Flaunt’s AI Loyalty Solution for Shopify: Flaunt introduces an AI-powered loyalty solution for Shopify merchants, helping them retain customers and enhance loyalty programs through personalized offers based on AI analysis of social media and customer feedback. This service-as-software offering marks a first in the Shopify ecosystem.
Paymob & Shopify’s Embedded Payments in MENA: Paymob expands its partnership with Shopify to launch embedded card and wallet payments for MENA region merchants, streamlining transactions and enhancing the e-commerce experience. The initiative includes digital merchant onboarding to facilitate quick setups for new Shopify stores.
Mercari Expands Access & Opens First U.S. Store: Mercari launches “Mercari x Japan“, allowing U.S. shoppers to purchase directly from sellers in Japan. This feature offers access to unique and rare Japanese items. Additionally, Mercari opens its first physical store in Los Angeles, enhancing its multi-channel retail strategy.
