Douyin, the Chinese version of TikTok operated by Beijing-based tech giant ByteDance, will start collecting software service fees from offline merchants, including restaurants and hotels, that use the popular short video app to promote their business, reports the South China Morning Post.
The new rule, effective Wednesday, applies to all merchants that offer so-called group buying deals, or discounts that apply to bulk purchases of one item by multiple customers.
The commission rate varies from 2 to 8% for different product categories, according to a statement on ByteDance’s OceanEngine site, which offers tips to merchants and short video creators on how to expand their influence on Douyin. For example, restaurants will pay 2.5% of the order’s transaction amount, while hotels will be charged 4.5%. The highest rate, 8%, applies to wedding services.