News & Reviews:   TikTok Shop Malaysia

In a move to further enhance customer experience and build trust within its platform, TikTok Shop Malaysia has officially extended its Free Returns period from 15 to 30 days. This is exclusively for authentic branded products purchased on TikTok Shop Mall.

Consumers in Malaysia were the 6th biggest spenders on TikTok Shop last year, as the e-commerce platform recorded an impressive gross merchandise value (GMV) of USD2.724 billion or ~RM12.07 billion in the country. Moreover, it’s a significant increase from 2023 - a 104% year-on-year increase, to be exact - when TikTok Shop recorded a USD1.3 billion or ~RM5.77 billion in Malaysia.

Lazada Malaysia has now announced that they have started implementing a service tax charge of 8% effective today, 1 March 2024. That’s 2% more than the 6% previously. In case you missed it, this is part of the government's announcement during Budget 2024.

Previously, we mentioned the possible actions for the government and ministries to take against TikTok Shop. This was done because of the recent ban on TikTok Shop in Indonesia. Today, TikTok Shop Malaysia launched TikTok Shop Mall. So, what should you know about it?

Recently, Indonesia shocked the world when it banned TikTok Shop from operating in its country. The biggest economic force in Southeast Asia banned direct sales on social media platforms last week to protect millions of small businesses. That said, why does this happen?

TikTok Shop Malaysia has announced that it will be introducing a new marketplace commission fee of 2 per cent to sellers beginning 10am on 1 March 2023. The marketplace platform clarified that the commission fee is subjected to 6 per cent value-added taxes (VAT).

It seems that TikTok is set to launch its e-commerce unit, TikTok Shop in Malaysia soon as the company is already actively recruiting local e-commerce talents and business operators in our country. Integrated seamlessly with the TikTok app, TikTok Shop allows sellers to easily list products up for sale and buyers to purchase them without even leaving the TikTok app.