By tf-lawyer.com As the highly anticipated Double Eleven shopping festival approaches, Douyin E-commerce is taking significant steps to assist merchants in reducing operational costs and enhancing the shopping experience for users. Starting on October 18, the platform is rolling out a series of cost-reduction measures specifically for shipping insurance. Eligible merchants and influencers can expect to see their shipping insurance costs decrease by 10% to 40%, which is estimated to save them over 4 billion yuan throughout the year.
This new policy is aimed at all merchants and influencers who choose to enroll in shipping insurance, alleviating their financial burden ahead of the year’s most crucial promotional event. By doing so, it is expected to effectively boost order conversion rates and improve after-sales efficiency.
A representative from Douyin E-commerce’s after-sales experience product team shared insights into their collaboration with multiple courier companies. They are upgrading their delivery operation models to consistently reduce shipping costs, which in turn lowers the premiums for shipping insurance. This initiative is anticipated to attract more merchants to opt for shipping insurance services, potentially leading to a wider array of products with shipping insurance available to consumers, thereby enhancing the overall shopping experience.
For instance, a clothing merchant on Douyin E-commerce previously paid a premium of 1.3 yuan per order. With the latest discounts, this cost could drop to below 1.1 yuan, marking a reduction of over 15%. Given that this merchant processes approximately 50,000 to 60,000 orders each month, they could save over 10,000 yuan monthly on shipping insurance premiums, significantly lowering their operational costs.
In addition, over the past year, Douyin E-commerce has implemented numerous favorable policies for small and medium-sized enterprises (SMEs), including commission-free product cards, zero-fee registration, and several reductions in security deposits. These initiatives have lowered entry barriers and operational costs for merchants, helping them grow. Since July, Douyin E-commerce has also reduced technical service fees for certain daily essentials categories from 5% to 2% and eliminated commissions entirely for the fresh fruit category. These moves are designed to free up real funds for merchants to invest in product innovation, expand their business operations, and create a positive feedback loop for sustained growth.
