TikTok Shop Platform Discount Rules
Plans: All plans Platforms: Shopify
TikTok Shop gives customers platform discounts (product and shipping fee) which are independent of the discounts given by the sellers to the customers. The discounts sellers give are funded by the sellers themselves, while the discounts that TikTok Shop gives are reimbursed to the sellers/merchants.
For example, if a customer’s order total before the discount is $12 and TikTok Shop is giving an additional product discount of $2, the customer would only need to pay $10. The $2 discount will be reimbursed by TikTok Shop to the merchant, meaning the merchant will eventually still get paid $12.
Before the launch of the feature that we will discuss in this article in a while, AfterShip Feed used to sync the total amount of order paid by the customer on TTS i.e., $10 to Shopify which was in reality inconsistent with the amount the merchant received $12 ($10+$2 (discount reimbursed by TTS)).
AfterShip Feed’s TikTok Shop Platform Discount Rules will give merchants the choice to decide how they wish to sync their orders from TTS to Shopify. When enabled, all the upcoming orders will be synced to Shopify according to the amount received by the merchant, not what the customer paid on TTS.
Examples 1:
Let’s break down TikTok Shop’s order amount and examine how the order total is calculated.
TitTok gives buyers platform discounts on items and shipping, funded by TikTok itself. (outlined in red)
This amount is deducted from the amount the buyer has to pay on TTS but will be reimbursed to the seller/merchant.
Order total ($11.01) is the amount after taxes and all discounts (including seller discount and TikTok Shop platform discount).
Order total equals the amount the buyer paid.
Example 2: If TikTok Shop offers no platform discount
Example 3: If TikTok Shop offers a $1 shipping discount and a $20 product discount
AfterShip Feed will sync the TikTok Shop order total amount (the amount paid by the buyer), in the above example $22, which is inconsistent with the actual amount received by the seller, i.e. $43 ($22 (TTS order amount) + $20 + $1 (platform discount reimbursed by TTS), leading to financial accounting problems.
In Shopify, the discount includes both seller and TTS platform discount ($20 + $ 20) and the shipping also includes both seller and TTS platform discount ($4 - $1 - $1).
Go to Settings in your AfterShip Feed admin > Order sync
Move to Order display rules and enable Add TikTok Shop platform discount back to order total
Once the option is enabled, the Shopify price breakdown will only display the discount amounts offered by the seller i.e. ($20 (seller discount on product) and $4 - $1 (seller shipping discount)).
On the side panel, you can see the notes from the TikTok Shop saying that the actual amount paid by the buyer does include the shipping and product platform discount to give you better clarity on what is being paid by the buyer on TTS.
Overview
TikTok Shop gives customers platform discounts (product and shipping fee) which are independent of the discounts given by the sellers to the customers. The discounts sellers give are funded by the sellers themselves, while the discounts that TikTok Shop gives are reimbursed to the sellers/merchants.
For example, if a customer’s order total before the discount is $12 and TikTok Shop is giving an additional product discount of $2, the customer would only need to pay $10. The $2 discount will be reimbursed by TikTok Shop to the merchant, meaning the merchant will eventually still get paid $12.
How the order amount was synced from TTS to Shopify
Before the launch of the feature that we will discuss in this article in a while, AfterShip Feed used to sync the total amount of order paid by the customer on TTS i.e., $10 to Shopify which was in reality inconsistent with the amount the merchant received $12 ($10+$2 (discount reimbursed by TTS)).
AfterShip Feed’s TikTok Shop Platform Discount Rules will give merchants the choice to decide how they wish to sync their orders from TTS to Shopify. When enabled, all the upcoming orders will be synced to Shopify according to the amount received by the merchant, not what the customer paid on TTS.
Examples 1:
Let’s break down TikTok Shop’s order amount and examine how the order total is calculated.
TitTok gives buyers platform discounts on items and shipping, funded by TikTok itself. (outlined in red)
This amount is deducted from the amount the buyer has to pay on TTS but will be reimbursed to the seller/merchant.
Order total ($11.01) is the amount after taxes and all discounts (including seller discount and TikTok Shop platform discount).
Order total equals the amount the buyer paid.
Example 2: If TikTok Shop offers no platform discount
| Item subtotal | $60 | ||
|---|---|---|---|
| Product discount - funded by seller | -$20 | ||
| Product discount - funded by TTS | 0 | ||
| Item subtotal after discount | $40 | ||
| Shipping fee | $4 | ||
| Shipping fee discount - funded by seller | -$1 | ||
| Shipping fee discount - funded by TTS | 0 | ||
| Shipping fee after discount | $3 | ||
| Buyer paid amount on TikTok Shop | $43 | Seller received amount | $43 |
Example 3: If TikTok Shop offers a $1 shipping discount and a $20 product discount
| Item subtotal | $60 | ||
|---|---|---|---|
| Product discount - funded by seller | -$20 | ||
| Product discount - funded by TTS | -$20 | ||
| Item subtotal after discount | $20 | ||
| Shipping fee | $4 | ||
| Shipping fee discount - funded by seller | -$1 | ||
| Shipping fee discount - funded by TTS | -$1 | ||
| Shipping fee after discount | $2 | ||
| Buyer paid amount on TikTok Shop | $22 | Seller received amount | $43 |
If the TikTok Shop Platform Discount Rules are off
AfterShip Feed will sync the TikTok Shop order total amount (the amount paid by the buyer), in the above example $22, which is inconsistent with the actual amount received by the seller, i.e. $43 ($22 (TTS order amount) + $20 + $1 (platform discount reimbursed by TTS), leading to financial accounting problems.
In Shopify, the discount includes both seller and TTS platform discount ($20 + $ 20) and the shipping also includes both seller and TTS platform discount ($4 - $1 - $1).
If the TikTok Shop Platform Discount Rules are ON
Go to Settings in your AfterShip Feed admin > Order sync
Move to Order display rules and enable Add TikTok Shop platform discount back to order total
Once the option is enabled, the Shopify price breakdown will only display the discount amounts offered by the seller i.e. ($20 (seller discount on product) and $4 - $1 (seller shipping discount)).
On the side panel, you can see the notes from the TikTok Shop saying that the actual amount paid by the buyer does include the shipping and product platform discount to give you better clarity on what is being paid by the buyer on TTS.
Updated on: 16/01/2024
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