This article is a comprehensive guide on automatic compensation for self-arranged returns, designed to help you as a seller understand and navigate the process effectively. By following this guide, you can minimise losses and ensure they don't overlook any important actions.

What is Automatic Compensation?

In the case of seller-fault returns, TikTok Shop offers automatic compensation for customers' return shipping fees. This initiative aims to enhance the return experience for customers and strengthen the platform's guarantee. The compensation amount will be deducted from the seller's balance.

Automatic Compensation Process

1. Return Initiation: When customers initiate a return and refund request, they can choose the 'Self Arrange' option as the preferred return method.
2. Responsibility Determination: The platform assesses the responsibility for the return and refund based on the provided reasons. If the seller is found responsible for the after-sale issue, the customer will receive automatic compensation in the form of a fixed amount coupon. This compensation will be granted after the seller receives and inspects the returned item.
3. Coupon Compensation: The platform prioritises compensating customers with coupons. The corresponding fixed amount will then be deducted from the seller's settlement balance.

Customer Return Process

1. Customers must select the appropriate after-sales reason when initiating a return and refund request and await the seller's approval.
2. Upon request approval, the customer needs to choose a return method. If they select the 'Self-Arrange' option, the system will inform them that they will bear the return shipping cost or may be eligible to receive a coupon if the seller is at fault.
3. Once the seller receives the returned item and is responsible for the return, or if the customer is entitled to free return rights, the system will automatically provide compensation. The customer can then view the coupon.

Seller Approval Process

1. As a seller, it is necessary to review return and refund requests. If the reason is considered unreasonable, you have the choice to reject the request and engage in negotiations with the customer to modify the reason. This helps prevent financial losses resulting from incorrect assignment of responsibility.

2. If the seller is at fault and the platform automatically compensates customers, as a seller, you need to verify the deducted amount. Go to the Seller Center and access the Finance > Transactions section. Use the 'Select Type' filter and select 'Deductions Incurred by Seller' to see a detailed list of automatically compensated shipping fees for self-arranged returns. Clicking on 'View Details' for each record provides specific information about the deduction reason.

3. For any inquiries regarding the automatic compensation results, you can reach out to the support team through the Chat with Us function.