Many cross-border e-commerce sellers may recall the deadline for TikTok Shop's deposit payment last month. Those who failed to meet the deadline might be wondering about the consequences for their stores. The introduction of this deposit policy has undoubtedly raised numerous questions among sellers. This article provides a thorough explanation of TikTok Shop's deposit policy, addressing key concerns including payment requirements, amounts, methods, replenishment procedures, and refund processes.
The Deposit: TikTok Shop's "Safety Lock"
Who needs to pay? What happens if you don't?
TikTok Shop implemented a deposit requirement for all cross-border merchants between September 15 and October 7, 2022, to protect consumer rights and enhance the shopping experience. According to platform regulations, merchants who failed to pay the deposit by October 8 faced various operational restrictions, including order limitations and product removals. The TikTok Shop Cross-Border Store Deposit Policy applies to all sellers wishing to operate on TikTok Shop, particularly those targeting the UK and Southeast Asian markets.
Deposit Amounts: Determined by Category and Country
The required deposit amount varies based on two key factors: the product category and target market country.
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Category Factors:
- New/Non-Order Stores: The deposit is based on the highest category set in the store. Multiple category deposits are not required.
- Active Stores: The deposit is determined by the higher amount between the ordered categories and currently listed categories, without requiring multiple deposits.
- Non-Operated Categories: No deposit is required for categories not being sold. Deposits already paid for such categories may be refunded after completing all relevant order services, though this feature is not yet available.
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Country Factors:
- Each country site requires a separate deposit. Sellers not operating in specific countries don't need to pay deposits for those markets.
Payment Calculation: Including Service Fees
When making deposit payments, sellers should note the impact of exchange rates and service fees. TikTok Shop accepts deposits in British pounds (GBP) or US dollars (USD), with final payments settled in Chinese yuan (CNY) or Hong Kong dollars (HKD). The platform charges a 1% service fee on the deposit amount.
The calculation formula is as follows:
Actual Payment (CNY/HKD) = [Deposit Amount (GBP/USD) + (Deposit Amount × 1% Service Fee)] × Current Exchange Rate
For example, if a seller needs to deposit £1,000 with an exchange rate of 8.01, the actual payment would be: (1,000 + 1,000 × 1%) × 8.01 = ¥8,090.01.
Payment Process: Simple and Convenient
TikTok Shop opened its deposit payment portal on September 15. Sellers can access it through: TikTok Shop Seller Center → Assets → Deposit.
The platform offers multiple payment options:
- Mainland China Companies: Personal or corporate online banking
- Hong Kong Companies: PayPal or debit card
Deposit Refunds: Two Scenarios
Deposit refunds are available in two circumstances:
- Partial Refunds: For sellers adjusting their product categories. After completing all order services for higher-deposit categories and confirming discontinuation, sellers may request a refund of the difference.
- Full Refunds: For sellers closing their stores. After fulfilling all orders, completing service periods, and resolving all potential disputes, sellers may request a full deposit refund.
Refunds can be requested through ticket submission or using the deposit return function. TikTok Shop will review refund eligibility, with approved refunds processed within 30 calendar days.
Deposit Replenishment: Correcting Deficiencies
Sellers who missed payments or had deposits deducted due to violations must replenish their deposits promptly. Three primary scenarios require replenishment:
- Category adjustments increasing deposit requirements
- Expansion to new country markets
- Violations resulting in deposit deductions
Failure to replenish within 30 working days after receiving TikTok Shop's written notice may result in operational restrictions, including order limitations, product removals, and posting restrictions.
Additional Considerations
- Sellers are responsible for all third-party fees related to deposits (e.g., bank charges)
- Deposits must be paid from the seller's own account with legally owned funds
- When ceasing operations, remaining deposits will be returned to the seller's account