Douyin E-commerce Invests ¥5.5 Billion in Merchant Subsidies and Implements Burden-Reducing Measures in Q1
On April 14th, Douyin E-commerce provided an update on its nine key merchant support policies. Following over ¥3 billion in cost reductions for merchants in January and February, the platform further increased its support in March, reducing commissions and costs by over ¥2 billion in that single month. This brings the total cost savings for merchants in the first quarter of this year to ¥5.5 billion.
At the start of 2025, Douyin E-commerce introduced nine merchant support policies focused on lowering operational costs and enhancing the overall experience, aiming to continuously improve the business environment for sellers. These cost-reduction measures included commission waivers for product cards and multiple categories, promotion fee rebates, reduced shipping insurance and security deposit requirements, and the establishment of a dedicated "Small Merchant Support Fund," all of which have yielded positive outcomes.
For instance, regarding multi-category commission exemptions, Douyin E-commerce expanded its 2024 commission waiver for fresh fruits and vegetables to include daily necessities, kitchenware, men's wear, underwear, eyewear, and clothing accessories in 2025 (retaining only a 0.6% payment channel fee). This initiative resulted in over ¥600 million in waived commissions across these categories in the first quarter. Driven by this policy, over 20,000 new fresh produce merchants joined the platform in Q1, and 55% of active fruit and vegetable sellers have adopted the platform's "Official Guarantee of Refund for Damaged Goods," providing consumers with greater purchasing confidence.
Beyond these category-specific commission waivers, the platform also launched a limited-time, platform-wide commission exemption in March for all newly registered merchants (covering product card, live-stream, and short video orders). This initiative spurred a month-over-month increase of over 40% in new merchant sign-ups in March. Additionally, the commission exemption policy for daily necessities and kitchenware will be extended until June 30th, offering merchants more development flexibility and helping them unlock greater business potential.
On February 24th, JuLiang Qianchuan (Douyin's advertising platform) fully rolled out a refund and return fee subsidy policy to help merchants decrease their advertising expenses. Nearly 70% of surveyed merchants reported awareness and approval of this policy. Looking ahead, JuLiang Qianchuan will continue to refine its advertising products and traffic strategies to assist advertisers in optimizing return rates and lowering operational costs.
To enhance the merchant experience, Douyin E-commerce also implemented several measures in the first quarter. These included a comprehensive upgrade to the "Merchant Experience Score" with refined evaluation criteria. For "Product Experience," a new comprehensive product rating was introduced, and the negative review rate was removed. For "Service Experience," the achievement rate of after-sales processing time was added, while the dissatisfaction rate on Feige (Douyin's customer service tool) and the after-sales rejection rate were removed, better reflecting merchants' actual operational performance. The new scoring system has led to a noticeable increase in the proportion of merchants scoring above 90.
Furthermore, in the first quarter, Douyin E-commerce relaxed penalties for minor logistics issues. For occasional minor violations like late shipments, the platform is now prioritizing pre-emptive warnings and consumer-side guarantees. Penalties for merchants with poor service have also been adjusted from security deposit deductions to more lenient measures like warnings and training, allowing merchants to better understand the positive impact of good customer service.
Moving forward, Douyin E-commerce will remain focused on the needs of its merchants, continuously implement the aforementioned support policies, and regularly share progress updates. Through a series of practical and effective initiatives aimed at reducing operational costs and improving the overall merchant experience, the platform seeks to create a more expansive growth environment for small and medium-sized businesses.