Hiring a top-tier influencer like Jenny Daichut Sodsakorn for live selling on TikTok Shop can generate millions in sales, but brands face significant costs, hidden fees, and complex operational challenges to achieve such returns.
The Thai influencer, widely known as Jenny, recently shattered sales records on TikTok Shop, reportedly generating approximately $3.36 million USD in a single live stream. This event saw the sale of 380,650 items to 4.49 million viewers, highlighting the immense commercial power of influencer-led e-commerce. Another notable live stream achieved sales of about $600,000 USD from 67,280 items to 2.62 million viewers.
However, securing Jenny’s services comes with a tiered pricing structure that can be substantial for brands. Urgent deals, focused primarily on engagement, start around $1,390 USD and may lack fixed scheduling. These deals often include conditions, such as shifting product promotion after 1,000 units are sold.
For brands requiring specific planning, timing, and detailed promotional efforts, fees range from approximately $4,170 to $8,330 USD. A popular alternative involves a per-order model, typically costing about $1,390 USD for every 1,000 orders. This method has earned Jenny millions in prior collaborations.
It is critical for brands to understand that the Gross Merchandise Value (GMV) displayed during these live streams, such as the $3.36 million figure, represents the total sales for the brand, not the influencer’s direct earnings. Jenny’s income is derived from a separate agreement with the brand, which can be a fixed fee or a percentage-based commission from the GMV. TikTok Shop provides creators with a performance dashboard, showing GMV, items sold, and viewer numbers, serving as a metric of brand sales performance.
Beyond the direct payment to the influencer, brands leveraging TikTok Shop must also account for various platform fees and taxes. TikTok Shop levies a commission fee based on product price (minus discounts) and a transaction fee of 3.21% on the total customer payment, including shipping. Shipping costs are typically borne by the seller.
Additionally, brands may incur affiliate commissions if external promoters are used. Income from online sales in Thailand is subject to personal or corporate income tax. Businesses exceeding approximately $50,000 USD in annual revenue are also required to register for and remit 7% Value Added Tax (VAT).
Operational risks, such as order cancellations, also demand careful management. Buyers generally have one hour to cancel orders without seller approval. Beyond this period, seller approval is usually required. High sales volumes increase the likelihood of cancellations due to buyers changing their minds or finding alternative promotions, necessitating robust inventory management and customer communication strategies.
To maximize their investment, brands must ensure adequate stock, prepare detailed product information and promotions, and deploy a support team for backend operations, customer inquiries, and order fulfillment. While influencer marketing offers massive potential for sales and brand awareness, its success hinges on strong product value, existing brand recognition, and meticulous financial and logistical planning.