Guidance: dispatch and deliver on time to avoid fund freeze and late delivery fees

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This guide outlines potential enforcement actions for poor on-time delivery or dispatch performance. Please note that the policies and examples provided here are not exhaustive. TikTok Shop's policies may change periodically. For the latest updates, please visit TikTok Shop Policy Center

Why is TikTok Shop charging for late deliveries?

TikTok Shop strives to provide a shopping experience that customers can have confidence in; the order fulfilment process is integral to a customer's online shopping experience. Therefore, it is important for us to maintain platform standards of fast, reliable delivery for our customers.
In order to help sellers manage their delivery performance, TikTok Shop may impose warnings, order volume limits and reduced visibility before temporarily pausing seller funds or charging fees on late deliveries.

How can sellers avoid a fund freeze or late delivery fees?

We advise all sellers to maintain their delivery or dispatch performance to the standards outlined in our Shipping Policy to avoid a fund freeze, late delivery fees or any other enforcement actions.
  • "Ship by Seller": ensure that you maintain your on-time delivery rate (OTDR) at 90% or above.
📍 See further detail on on-time delivery rate here.
📍 Remember to only use TikTok Shop’s Approved Logistics Provider in order to maintain performance.

What happens if sellers breach on-time delivery or late dispatch targets?

Sellers with an on-time delivery rate (OTDR) below 90%, may face enforcement action in the form of reduced visibility and order volume limits (OVLs). If OTDR significantly breaches performance standards, sellers may face a funds freeze and/or late delivery fees.
📍Learn about Order Volume Limits (OVL) here

What is a funds freeze?

A funds freeze is when TikTok Shop will temporarily withhold balances on all shops associated with the Seller's account.
📍 Only sellers with poor on-time delivery rates will face a funds freeze on all shops associated with their seller account.

How will sellers know if their funds have been frozen?

Sellers will receive a notification informing that TikTok Shop will temporarily withhold balances on all shops associated with the Seller's account. All notifications regarding a funds freeze will be received on a Monday and funds will be frozen for eight (8) calendar days upon notice.
For example, the seller receives a notification that funds have been frozen on Monday 16th January. TikTok Shop will temporarily withhold balances on all shops associated with the seller's account until Tuesday 24th January.
All notifications will be received in the Seller Center Shop Health Violation Records.
Note: a funds freeze will be in addition to an Order Volume Limit (OVL).

How will sellers be charged the late delivery fee?

  • "Shipped via Platform"- TikTok Shop will charge a late delivery fee on each order that was delivered beyond the delivery timeframes outlined below.
Orders reviewed will be the same 7 days as the on-time delivery rate (OTDR) calculated for the fund freeze.
  • "Ship by Seller"- TikTok Shop will charge a late delivery fee on each order that was delivered beyond the delivery timeframes outlined below.
Orders reviewed will be the same 7 days as the on-time delivery rate (OTDR) calculated for the fund freeze.Late delivery fee timeframesThe late delivery fee timeframe is the OTDR deliver-by SLA + 3 business days. For UK routes, this is 7 business days for all routes.
Sellers will be charged late delivery fees seven (7) days after the fund freeze notification. The late delivery fee charged is dependent on the Seller's OTDR, as outlined below:
Ship by seller
Shipped via Platform
Significant OTDR breach
£ 7
Significant OTDR breach
£ 7
Severe OTDR breach
£ 15
Severe OTDR breach
£ 15
For example,
  • The seller receives a notification that funds have been frozen on Monday 16th February; TikTok Shop will temporarily withhold balances on all shops associated with the seller's account until Tuesday 24th February,
  • On Monday 23rd February, TikTok Shop charges the seller a late delivery fee on all orders, across all shops that were delivered beyond the late delivery fee timeframes outlined above.

How will sellers know if they have been charged a late delivery fee?

Sellers will be notified in their Seller Center Shop Health Violation Records.
What is the line item on statement/ settlement to be shared ?

How can sellers appeal a funds freeze?

A seller can appeal a violation in Seller Center Shop Health Violation Records. Sellers can appeal by submitting a detailed explanation with supporting documents.
A seller can appeal the fund freeze seven (7) calendar days from the date the violation notification was issued,
If a seller appeals within seven (7) calendar days upon notice of the funds freeze and the appeal is successful, they will not face late delivery fee charges in the following week.
  • Note: this will not protect sellers from any future late delivery fee charges; sellers will be notified of future fund freezes and potential late delivery fee charges.

How can sellers appeal a late delivery fee charge?

A seller can appeal a violation in Seller Center Shop Health Violation Records. Sellers can appeal by submitting a detailed explanation with supporting documents.
  • The first appeal must be filed within eighty (80) calendar days from the date the violation notification was issued,
  • The second appeal must be filed within fifteen (15) calendar days after the rejection of the first appeal.