Changes to Platform Shipping Fee Calculation
03/19/2025
Indonesia Platform Shipping Fee Instruction
- From 1 April 2025, the shipping fee will be charged based on the actual pickup address recorded by the LSP.
- From 16 Feb 2025, the shipping fee will be calculated based on the greater of seller's declaration and LSPs measured weight
Pick up address and shipping fee calculation
To enhance the accuracy and transparency of shipping fee calculations, we are implementing an update to our settlement rules. This new rule will take effect from 1 April 2025 and will impact how pickup addresses are used in determining shipping fees.Old Calculation RulePreviously, the shipping fee paid by sellers to TikTok Shop by Tokopedia was calculated based on the pickup address declared by the seller in the system.
New Calculation RuleMoving forward, the platform will determine shipping fees based on the actual pickup address recorded by the Logistics Service Provider (LSP) at the time of collection, rather than the seller’s declared pickup address.
- For sellers: The platform will charge shipping fees based on the actual pickup address recorded by the LSP, ensuring alignment with actual logistics costs.
- For buyers: The shipping fee will still be based on the pickup address maintained by the seller in the system, which is the address visible to buyers when placing an order.
How does it work?
- Seller Sets Pickup Address – The Seller maintains a default pickup address in Seller Center.
- LSP Pickup & Address Validation – The LSP collects the parcel and records the actual pickup address.
- Fee Calculation:
- For sellers, TikTok Shop calculates the shipping fee based on the actual pickup address recorded by the LSP.
- For buyers, the platform calculates shipping fees based on the pickup address maintained by the seller in the system.
How does this affect you?
- For sellers: Since shipping fees will be based on the actual pickup address, it is important to ensure that the declared address matches the actual pickup location to avoid unexpected charges.
- For buyers: The shipping fee calculation for buyers remains unchanged and will still be based on the pickup address maintained by the seller in the system.
- Ensuring accuracy: Sellers should verify that their pickup locations are correct to prevent discrepancies and maintain a transparent shipping fee structure.
Changes to Platform Shipping Fee Calculation
What is changing?We are implementing adjustments to our settlement rules to ensure the accuracy of our shipping processes. This article explains the new rule, effective from [16 Feb 2025], and how it impacts you.Old calculation ruleCurrently, the shipping fee paid by sellers to TikTok Shop has been calculated based on the gross weight or volumetric weight of the package measured by logistics service providers (LSP), whichever is higher.
New calculation ruleWe are revising the settlement rule to better incorporate sellers' input. Moving forward, the shipping fee will be calculated based on seller's [chargeable weight], defined as the greater value between the seller-provided Gross Weight or Volumetric Weight.
However, if LSP's [chargeable weight], i.e. the greater of LSP-measured Gross Weight or Volumetric Weight—exceeds that of seller's chargeable weight, LSP's measurement will take precedence over settlement calculations.
To minimize discrepancies, it is critical that sellers provide accurate Gross Weight and Dimensions for their products. Ensuring precise input will help avoid adjustments during the settlement process.
How does it work?
- Input Data: You input the [chargeable weight] of your product after packaging when creating a product listing in Seller Center.
- LSP Measurement: LSP measures the actual package [chargeable weight] during shipping.
- Final Chargeable Weight: The system determines the final chargeable weight based on the higher of your input in Seller Center or LSP's measurement.
FAQ
- How can I avoid unexpected shipping fees?
- How do I update my pickup address?
- What if I drop off my parcels instead of using pickup?
- How can I avoid being overcharged with shipping fee difference?
- How can I update product weight and dimensions?
- What should I do if LSP measurements are incorrect?