The Information reports that “TikTok is offering to shoulder some of the cost of returned items for TikTok Shop sellers, even if shoppers keep the item. It’s the latest sign of how aggressively TikTok is trying to grow its nascent U.S. shopping service, and comes on the heels of TikTok’s recent launch of fulfillment services for U.S. sellers.”
According to the story, “For items that cost $20 or less, shoppers will be able to receive a refund without having to return the item, and sellers will be eligible for reimbursements from TikTok. TikTok will reimburse the seller for the full cost if the buyer returns an item because it doesn’t fit or is no longer needed. If the buyer returns an item due to quality or shipping issues, TikTok will reimburse the seller up to $10.”
KC’s View:
Everybody else seems to be moving in the other direction, trying to figure out how to limit returns and charge for them whenever possible – the argument is that free and unlimited returns are financially unsustainable. But when you have money and are trying to generate market share – and TikTok has both deep pockets and a willingness to spend freely – anything is possible. Which, if TikTok’s retail efforts gain traction, will set the bar for competitors trying to find ways to balance their books.
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