Free Shipping FAQ Guide

Frequently Asked Questions (FAQ)

1. What changes are being implemented?

We will end Co-Funded Free Shipping (CFFS) and replace it with the Free Shipping program.

• For TikTok Shipping and Seller Shipping, the $0.80 per order subsidy will be discontinued, and sellers will cover the shipping costs so shoppers can continue to enjoy free shipping.
• For FBT sellers, the $0.75 per-item subsidy will be discontinued. Sellers will be charged the standard FBT fulfillment fee, while shoppers will continue to enjoy FBT free shipping benefits.

3. When is the anticipated launch date for the new Free Shipping program?

5/29/2025

4. What are the benefits for sellers by providing shop level free shipping with threshold at $30 and below?
   1. Enhance visibility on ShopTab, short videos, and search results.
      1. Improve product exposure on the Shoptab recommendation page, ensuring your offerings stand out to potential shoppers.
      2. Gain exposure on the Shoptab search result page, making it easier for shoppers to discover your products.
      3. Increase visibility with TikTok's 'For You' page, reaching a broader audience and driving higher engagement.
   2. Gain access to campaigns and platform promotions featuring free shipping.
      1. Enhance exposure to Flash Deals with free shipping to attract more shoppers looking for great deals.
      2. Gain access to campaign landing pages that highlight your products and promotions, enhancing visibility and driving sales.
      3. Get coupons from the TikTok Shop to offer extra incentives, encouraging shoppers to choose your products.
   3. Your products will be featured in creator broadcasts and included in a curated product pool
      1. Increase your exposure by gaining more visibility with free shipping products, making them more appealing to creators and influencers.
      2. Enjoy a dedicated free shipping badge in live streams, helping your products stand out during broadcasts.
   4. Receive a free shipping badge and gain eligibility for inclusion in the free shipping channel.
      1. Shoppers have the option to filter products based on free shipping settings, which can enhance visibility and boost shopper engagement.
      2. Showcase your products in the free shipping tab on the search results page, drawing the attention of budget-conscious shoppers.
      3. Stand out with a free shipping badge showing shoppers that your products offer extra value and convenience with free shipping.
5. What impact will these changes have on sellers participating in the CFFS program versus those who do not?

• For TikTok Shipping & Seller Shipping:
  • Sellers who were previously enrolled in the CFFS program will be automatically included in the new Free Shipping program, where they cover the shipping cost for shoppers. Sellers offering shop-level free shipping with a threshold of $30 or less will also unlock additional program benefits.
  • Sellers offering shop-level free shipping with a threshold of $30 or less will also unlock additional program benefits.
• For Fulfilled by TikTok:
  • Sellers will see no changes to the current FBT policy, aside from the added benefits of the Free Shipping program, which FBT products are already enrolled in. There won't be an opt-out option.

6. Will sellers receive the same benefits regardless of whether they set the free shipping threshold at $0 or $30?

Yes. Sellers who provide shop level free shipping with threshold at $30 or less will enjoy the same benefits. If you are a FBT sellers, then you will automatically receive these benefits, as the FBT standard free shipping threshold is set at $30 or less.

7. Will there be varying free shipping thresholds for sellers across different categories?

Currently, we do not have multiple free shipping thresholds by categories.

8. What reporting metrics will be accessible to sellers in the Seller Center?

In Seller Center, sellers will have access to
A. Free shipping coverage (The percentage of orders benefiting from free shipping, excluding sample orders.)
B. Free shipping GMV share (The percentage of GMV generated by free shipping orders, excluding sample orders.)
C. Free shipping average conversion rate uplift (The average increase in conversion rate observed across the industry after offering free shipping, compared to not offering it.)

9. What options do sellers have if they choose not to automatically participate in the new program?
   • Sellers currently enrolled in the CFFS, already have a shop-level free shipping threshold set at $30 or below and will automatically receive the benefits of the new Free Shipping program without any action required.
   • If a seller chooses not to participate or receive these benefits, they may opt out by adjusting their shop-level free shipping threshold to be over $30.
   • Please note: The shop-level free shipping threshold adjustment only applies to orders fulfilled via TikTok Shipping and Seller Shipping.
10. What is the Colorado Retail Delivery Fee?
    • Colorado imposes a retail delivery fee on deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or use tax. TikTok, as the marketplace facilitator, is responsible to collect and remit this fee, as applicable, on orders that are delivered by motor vehicle to Colorado.
    • For additional information regarding the Colorado Retail Delivery Fee, please visit the Colorado Department of Revenue website here.

• The Retail Delivery Fee will be refunded back to you if your order is canceled before any of the items within the order is shipped. Once any item in the order is shipped, TikTok must remit the Retail Delivery Fee to the Colorado Department of Revenue.