For cross-border sellers, the most important issue is logistics. The speed of logistics will directly determine sales, and logistics costs are also one of the key factors. If logistics costs are not properly calculated, the seller will lose money and have a great impact on its income. So, let’s learn how to calculate TikTok delivery fees?
1. TikTok logistics costs.
tiktokShop provides logistics services in some markets. For local sellers, they can arrange their own logistics and the platform will not charge them logistics fees. For cross-border sellers, if the merchant does not provide the platform with a British VAT tax number, the logistics fee charged by the platform does not include the VAT rate. If the merchant provides a valid VAT tax number, the logistics fee charged by the platform contains a 20% VAT tax rate. Cross-border sellers only need to fill in the British VAT tax number on the e-commerce platform, and the platform will issue an invoice for the cross-border freight + 20% VAT tax rate.
2. Cross-border logistics costs.
This part is called “cross-border logistics cost” on the price card, which means that on the order page, what customers see is the local shipping cost.
3. How to calculate cross-border logistics costs into the selling price?
Sellers can trigger a price update through the batch modification method below. In addition, sellers can also use batch editing. to download all product data, and then re-upload the product list, so that the cross-border logistics cost will be calculated in the selling price.
4. How is the estimated buyer shipping fee seen in the seller’s backend calculated?
The standard channel price is displayed as 4 pounds, which will not be affected by the weight and volume of the product.
5. How does the local display price platform calculate the local display price?
Local display price = (pre-tax price + cross-border logistics cost) * (1 + VAT tax rate).
For example, if the VAT rate is 20%, then the local display price is 13.1 pounds = (8 pounds + 2.92 pounds) * (1 + 20%).
The above introduces the relevant knowledge on how to calculate the TikTok delivery fee. Of course, you can also set up free shipping to encourage customers to purchase, and then reflect the fee in the product price. Understand the relationship between these freight charges, and then combine different strategies to set prices according to your own products.