Why is my order pending? How SKU IQ handles cancellation policies from TikTok Shop

To avoid overselling or fulfillment of cancelled orders, SKU IQ now syncs payment-pending TikTok Shop orders and holds their fulfillment in Shopify until payment is guaranteed

Overview (Click here to skip to How it Works)

TikTok Shop has a unique, buyer-friendly purchase workflow that differs from traditional e-commerce platforms in three key ways:

1. Declined payment does not stop order creation and inventory reservation

2. Payments can be retried multiple times and in multiple ways for the next 24 hours

3. Ready to ship orders can be canceled in the first hour without seller approval

   1. The buyer can cancel for any reason

   2. TikTok can cancel the order if it suspects fraud

As of June 27, 2022, SKU IQ has implemented support for the unique workflow use cases of TikTok Shop. This includes various aspects of the purchase process such as initial order creation, order payment, order cancellation (both automatic and manual), and order fulfillment. With this update, SKU IQ enables businesses to seamlessly integrate and manage their TikTok Shop orders within their existing e-commerce platform.

By incorporating these unique workflow use cases, SKU IQ ensures a smooth and efficient experience for businesses and buyers alike. For instance, when a payment is declined on TikTok Shop, the order creation and inventory reservation are not interrupted. This allows businesses to maintain their inventory availability and gives buyers the opportunity to retry their payment multiple times and in different ways within a 24-hour window.

Furthermore, buyers have the flexibility to cancel ready-to-ship orders within the first hour without requiring seller approval. This buyer-friendly feature empowers individuals to cancel orders for any reason, giving them peace of mind and control over their purchases. Additionally, TikTok reserves the right to cancel an order if it suspects fraud, providing an added layer of security for both businesses and buyers. While orders are in these pending states, they will show up in Shopify with a Payment Status of "Payment pending" and a Fulfillment Status of "On Hold".

When it comes to order fulfillment, SKU IQ ensures that the process is streamlined and transparent. As soon as a TikTok Shop order is paid for, it transitions to the "Awaiting Shipment" status within the TikTok Shop platform. While the order appears in the SKU IQ user interface, the order status in Shopify remains as "Payment pending"/"On Hold" until payment is guaranteed (up to 24 hours) and then for an additional 60 minutes (the period within which buyers and TikTok are able to cancel without seller notification). After one hour, SKU IQ updates the Shopify order status to "Paid"/"Unfulfilled", allowing businesses to proceed with fulfilling the order and providing a seamless experience for both the seller and the buyer.

In terms of order cancellation, TikTok Shop offers both automatic and manual cancellation options. Automatic cancellation occurs after 24 hours (if payment is not received successfully) or within the first hour from the time the order is paid (if buyer cancels or TikTok deems it fraud). In these cases, SKU IQ syncs the cancellation to Shopify, updating the order status and returning the item quantities. Manual cancellation, on the other hand, requires seller approval in TikTok Shop. Sellers should confirm the cancellation request in Shopify before approving it in TikTok Shop.

With SKU IQ's support for these unique workflow use cases, businesses can effectively manage their TikTok Shop orders and integrate them into their existing e-commerce operations. This ensures a seamless and efficient purchasing process for buyers, while providing businesses with the necessary tools to streamline their order management and fulfillment.

How It Works

1. Initial order creation

   1. TikTok will create an order even if the payment is declined

   2. TikTok will place inventory on hold for this new order

   3. SKU IQ will sync this order as "Payment pending", "On Hold" order in Shopify

1. 1. Creating this on-hold order in Shopify also places the inventory on hold

   2. The order will not yet appear in the SKU IQ UI

1. Order payment

   1. Payment can be retried multiple times on an order for 24 hours

   2. If payment is not successful at 24 hours, the order will auto-cancel

1. 1. When the order is paid, it will transition to Awaiting Shipment in TikTok Shop

   2. At this point, the order will appear in the SKU IQ UI but the Shopify order status will not change, as payment is not yet guaranteed for another 60 minutes:

      1. Buyer can cancel the order for any reason

      2. TikTok can cancel the order if fraud is suspected

   3. If the order is still awaiting shipment after one hour, SKU IQ will update Shopify as follows

      1. SKU IQ will send a payment transaction to Shopify

      2. SKU IQ will release the fulfillment hold so the order can be fulfilled, status in Shopify will change to "Paid"/"Unfulfilled"

1. 1. If the order is canceled after one hour, the order will also be canceled in Shopify

1. Order cancellation (automatic at 24 hours or 1st hour from paid)

   1. When TikTok Shop cancels the order, we will sync the cancellation to Shopify

      1. Cancelled orders will have a strikethrough on the summary page and an additional status of "Canceled" when viewing order details

1. 1. Item quantities will be returned (increase) on both platforms

2. Order cancelation (manual after 1st hour from paid)

   1. Buyer’s cancellation request will require seller approval in TikTok Shop

   2. Seller should first confirm they can cancel the order in Shopify

   3. Once order is canceled in Shopify, they can approve the cancellation request in TikTok Shop

3. Order fulfillment

   1. When the Shopify order is fulfilled, it will appear in the SKU IQ UI

   2. Provided the seller is using a supported carrier, the tracking information will sync

Frequently Asked Questions

• Why are orders showing up in Shopify before payment is guaranteed?
  • Ideally, it would be preferable for orders not to appear in Shopify until payment is guaranteed. However, it is necessary to synchronize the order as soon as it is received to ensure that the associated inventory is reserved. If SKU IQ waited to sync the order to Shopify until payment cleared, merchants would be at risk of overselling their products.
• Can I turn this feature off?
  • Currently, there is no option to deactivate this order management feature. This is necessary in order to prevent the possibility of overselling and to ensure compliance with TikTok Shop's cancellation policy. Therefore, all orders must go through the holdback process to maintain inventory accuracy and prevent any potential issues.