TikTok Introduces £0.50 MFN Fee and Launches Co-Funded Promotions

TikTok is taking another step to strengthen its e-commerce infrastructure and support tools for sellers. Starting July 15, 2025, TikTok Shop will introduce a £0.50 service fee per order (inclusive of VAT) for merchants using the Merchant-Fulfilled Network (MFN) model. This charge applies exclusively to orders shipped directly by sellers. Orders fulfilled through TikTok Fulfillment (FBT) or TikTok’s own logistics solutions will remain exempt from the fee, as associated costs are already included in those services.

According to TikTok, this new service fee is aimed at enhancing platform infrastructure and improving seller toolkits as the platform scales its commerce ecosystem across key markets.

New Co-Funded Promotion Program Starts July 1

In addition to the MFN service fee, TikTok Shop will officially launch its Co-Funded Promotion Program on July 1, 2025, making it accessible to all sellers on the platform. The program kicks off with a 14-day free trial period, during which TikTok will fully sponsor all promotional campaigns. This trial is designed to help sellers unlock exclusive discount coupons and extra subsidies to accelerate sales growth.

After the free trial ends, the program transitions into a co-investment model starting July 15, where:

• TikTok Shop covers 75% of promotion costs
• Sellers contribute 25%

Sellers can opt in or out of the program at any time. Charges will only apply to campaigns launched under the program, and detailed policies—including contribution ratios—will be regularly updated in the Seller Center.

Strong Results from Pilot Program

TikTok reports that its pilot version of the Co-Funded Promotion initiative yielded remarkable results. On average, participating sellers achieved a 14x return on investment (ROI), meaning sales were 14 times greater than their promotional spend. Additionally, sellers recorded an 11% increase in new customer acquisitions.

By combining targeted budget allocation, exclusive coupons, and extra platform-funded incentives, TikTok aims to create a high-impact promotional environment that drives significant sales growth for participating sellers.

Plan Ahead for Logistics Support

With these upcoming changes, TikTok sellers should not only evaluate their promotional strategies but also ensure smooth and cost-effective order fulfillment—especially under the MFN model. As a professional international freight forwarder, Forest Shipping offers reliable shipping solutions tailored to TikTok sellers. Whether you're shipping from China to the U.S., Europe, or other regions, our end-to-end logistics support ensures your products reach customers on time and within budget.

Need help navigating cross-border shipping? Contact Forest Shipping for a custom quote today.